Posted by: islamicfinancingnews | December 22, 2013

Some obstacles to Islamic finance success

Although most people understand that Islamic finance is different in some fundamental ways from the more common western counterparts, there are some similarities as well. Unfortunately, one of these is the fact that both are getting harder to secure. Experts say where the normal ratio would be 6 out of 10 applications approved, today’s ratio is closer to 3 out of 10. Here’s a few reasons why.

  • There are higher credit score requirements now. Gone are the days where the requirements were more lenient. Today you need to have a top-notch mortgage ratescredit score to get approved. If you’ve been turned down because of the credit you have, there’s no reason to despair. Lending institutions are generally happy to tell you how to fix low numbers so you can reapply for Islamic mortgages with confidence.
  • Home appraisals are low. There are several reasons for this and at least some of the pundits are saying the government is to blame. By enacting the Home Valuation Code of Conduct, some real estate professionals feel the legislation has put a drag on the industry’s recovery.

Finally, there’s what’s being called a moving target of other requirements that would-be home owners need to hit. The guidelines constantly change, leaving the middle of the road consumer to wonder what they need to do to qualify.

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