Although an ijara loan is very similar to its more traditional Western counterparts in many important ways, there are some differences between ijara financing and other types of mortgage loans. However, for the most part the qualification process parallels the different versions. Following are a few things that you’ll need to know to make sure you get through the process hassle free.
The credit report and your ijara loan
It stands to reason that any lending institution that wants to give you ijara financing money will also want to be sure that you don’t present an unnecessary risk for repayment. One of the ways that banks and other financial institutions gauge your credibility is through a credit report. These numbers provide a snapshot of how you use credit and how responsible you have been in the past. It’s important to keep in mind here that even if you have some bruised credit incidents this doesn’t necessarily mean that you can’t qualify for an ijara loan.
The ijara loan and your employment history
The people lending you the money so you can start your journey towards homeownership with ijara financing will also want to know a little bit about your employment history. It’s important to them that you’ve had the same job for several years. For this very reason if you’re about to be transferred, you might want to hold off on applying for an ijara loan until your situation becomes stable again.
Qualifying for an ijara loan can also mean giving some information about where you live and how long you been residing in a certain location. The concept behind these queries is simple. Lending institutions want to be sure that you’re on a stable footing to pay the money back whether you’re looking at an ijara loan or more traditional mortgage.