Tawarruq Definition: As we’ve already stated when we’ve gone through these definitions, many Islamic financing terms correspond to Western models with a few differences. Tawarruq is one of these. On the one hand, it’s an Islamic financial product that lets people raise money in a convenient fashion. Of course, one of the basic tenets is sharia laws are all observed so there isn’t any usury present.

One of the rules that need to be followed here concerns tangible assets. For example, someone might buy a certain amount of metal from a financial institution. They might pay off the purchase in a year’s time. If they sell the metal back to the bank for an agreed-on amount, the sharia requirement that all transactions need to have a tangible asset is fulfilled.

Tawarruq is important to Islamic financing since it’s a vehicle that allows you to put money together—perhaps even for the purchase of your own home. Not everybody understands what to look for when they go house hunting. Looking for the perfect home can be a daunting challenge if you don’t have some of the right criteria to use.

That’s why we’ve put together a few boxes that you can check. Along with tawarruq and other forms of Islamic financing, these will help you accomplish your goal.

Finding the right neighborhood is a critical decision. Too often people are dazzled by a house and the amenities they find. It’s important to have a look around and use practical criteria to judge the neighborhood to get the whole picture.

During home values is one of the first things that you should do. Taking a look at what the other houses in the same neighborhood are selling for can give you a good benchmark. It’s also a good idea to ask about the monthly bills. Not only are we talking about utilities here but different fees if the house you’re thinking about is a condominium.