Even though you’re applying for an ijara mortgage that will be Sharia compliant, you need to understand that you’ll be trying to get the ijara financing through a more traditional financial outlet. North American banks all have certain guidelines that you’ll need to follow so that you stand the best chance of getting a loan. Once you get approved, the money will be put in a trust so there’s no chance of paying riba, but following are some of the things you’ll need to consider to get the loan in the first place.
- An ijara mortgage that gets approved will take into account your credit rating. It doesn’t matter that your applying for ijara financing, having a good credit rating is one of the foundations that you will need to have to get the money in the first place. Therefore, one of the first places you should start your quest for ijara mortgages is with the credit rating agencies. Even if you have a bad credit rating at first, paying your bills on time for a short period will improve your situation. If you don’t have a credit rating, applying for a credit card with a reasonable limit is a good first step.
- You will also need to show proof of your employment. Of course it stands to reason that applying for and getting an ijara mortgage means showing the lending institution that you are not a large risk for repayment, and that means showing the bank or credit union proof that you have a job and are a stable member of society.
- There are other requirements for ijara financing including proof of residency. The lending institution considering giving you an ijara mortgage will also want to know about the places you’ve lived over the last several years.
One other note. Keep in mind that when you are applying for an ijara mortgage, the total you get approved for isn’t the total amount of money that you need to run a house properly. There are costs associated with homeownership like utilities and property taxes that need to be figured in.