Posted by: islamicfinancingnews | January 31, 2014

Three mistakes you need to avoid before signing for Islamic loans

After you’ve found that perfect home and are getting ready to sign on the dotted line for Islamic mortgages, you need to be especially wary to avoid doing anything that can kill the deal. Any Islamic loans you need to buy the place of your dreams can still be scuttled if you fall into one of these three pratfalls.

  • Going overboard on credit. The first few years in any new home are going to be tight as far as money goes. Outfitting that place with new furniture before the deal closes can spell trouble. Getting new credit cards can even tip the boat. You’ve made what many consider to be the most mortgageimportant purchase of a lifetime, getting all the accessories can wait.
  • Falling Behind On Bills. Thinking you’ll need to have a war chest of cash for a new house and cutting back on paying other bills to get one is another bad idea. The banks will be watching your money flow during the underwriting process so you need to put your best foot forward.
  • C0-signing a loan. Assuming the liability for someone’s debt is a big red flag to lenders when you’re applying for Islamic finance.

You need to show some patience during this part of the process when your Islamic loans application is underway.

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