Here’s How Ijara Mortgages Can Help With Your Dream of Owning A Home

Ijara mortgages help you buy a home. Without an interest based loan.  They are customized.

Purchasing your first or second home is an exciting time. When you choose an ijara  loan, you can stay sharia compliant and take advantage of the real estate market at the same time.  There are other advantages. These include:

• The mortgage can’t contain extreme risks . The terms of this type of contract need to be clear surrounding the duties, rights, conditions and obligations of  everyone involved.
• There’s no riba . These are sharia compliant financial contracts.
• The entire Islamic banking model contributes to a better distribution of both wealth and income.

Practicing Muslims and other people who are looking for a new property have a lot of things to consider. Here are just a few of the points you need to put on a checklist for ijara mortgages.

• Start by checking out the neighborhood.  Before you start looking at any properties and homes you should determine what kind of neighborhood best suits your family. Ask yourself if you need to be close to schools and/or transit and shopping. Narrow down your choices and then drive through different locations at different times of the day and night.
• Making a list of your family’s requirements also helps. Some of the more common needs here include the number of bedrooms and bathrooms as well as the minimum square footage.

Don’t forget you’ll need some handy tips when you’re looking to get ijara mortgages too.

For example, if you are salaried and looking to get an ijara loan, you’ll need to gather up some documents. One month of your recent pay stubs or two years of W-2s will do. If you are self-employed, two years’ worth of tax returns will be necessary.

Ijara Mortgages and Your Credit Report

These loans are sharia compliant. However, it’s a good idea to get a copy of your most recent credit report before filling out the application. Your credit rating usually relies on what’s called a FICO score. It is important to remember these scores only deal with information in your file. They don’t consider other factors like your down payment, income or savings.

Remember, house hunting doesn’t need to be all about facts and figures. You also need to factor in your wants and needs. Once you’ve gone through what you think you can’t do without, it’s time to make a list of wants.

Cosmetics

This list often includes a lot of the cosmetics. Stainless steel appliances, hardwood flooring and quartz countertops are things you should write down.

Don’t forget to ask the right questions to complement your ijara loan. Find it when the windows were replaced last and if the appliances are still under warranty. The same goes for the hot water tank and roof. Make sure you find out how old the furnace is at the same time. All good things to look at with ijara mortgages.