Posted by: islamicfinancingnews | November 13, 2013

Islamic finance is just one of the mortgage terms you’ll need to understand

Once you have Islamic loans, you can feel secure that you’ll be entering the North American real estate market with Sharia compliance on your side. mortgages #3However, you will soon find there are many similarities between the conventional mortgages and Islamic mortgages and it’s best if you understand as much about each as possible. Here’s few of the more common phrases you might come across.

  • Bridge financing. This technique is helpful when you have closing dates that don’t coincide. For example, if you need to pay for a new location one month earlier than you get the money from the old one, some special (or bridge) financing might be in order. Remember, you’ll need to pay for this with higher interest rates since these temporary situations cost the banks in extra documentation and labor.
  • Building Permit. You’ll need to get one of these if and when you plan on doing some renovation work. Before a building can be changed, repaired or erected, you’ll need to get one of these from your local municipality and erect it in a conspicuous place.

Being well informed is the best prerequisite to buying a new home and having Islamic finance is a great start. However, you do need to go a little further and research out conventional mortgage terms as well.

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