Posted by: islamicfinancingnews | January 26, 2014

Here’s some helpful phrases for buying a home

Buying a home is a new experience for most of us. Getting Islamic finance is one of the decisions you need to make early on when you’re a practicing Muslim, but there’s lots of other new ground to cover as you move along. Learning a new vocabulary is part of that. Here’s a short glossary of terms you might need to reference from time to time.

  • Amortization. This one can be little confusing for the new home buyer. The amortization is the entire time it will take to pay the loan back in its home ownershipentirety. It’s different from the terms you agree to over a set period like five years.
  • Closing Day. This is the one that every new homeowner waits for since the closing day is the day when you get your keys and the ownership of the home finally changes hands.
  • Deed. This is the actual piece of paper that clearly notes who owns the house. This document is legal and sets out the names of the homeowners and the date when transfer of title took place.

Getting Islamic loans is the right way to go if you’re looking to steer clear from riba. Educating yourself about all the other aspects of home ownership is a necessity as well.

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