Now that you’ve made the decision to get an ijara loan so you can stay Sharia compliant and away from riba, there are some other bridges that you’ll need to cross before you sign on the dotted line and get that ijara loans money to buy a home with. Remember that ijara financing and the more traditional Western models are alike in many ways and the prerequisites to qualify are very similar regardless of the type of loan you’re looking for.
That said, here’s a few pieces of documentation you should have in order.
- Employment history. The idea behind getting pre approved is twofold. You need the ijara loan money so you can get a home of your own or start in business and the lenders want to be sure that you don’t present an unecessary risk for repayment. That means for starters that you need to show the banks you’ve had a job for a number of years.
- Residence history. These lenders can be a little picky but can you really blame them? After all, that ijara financing money comes from their coffers. That’s why they would also like to know where you’ve lived over the last several years and how long you’ve resided at each place. That’s really not an issue if you’ve been saving for an ijara loan down payment and staying low.
Finally, the lenders will also want to make sure you’ve got a decent credit rating before they give you the money for an ijara loan. There’s no need to panic if your credit rating has been bruised in these hard economic times either. You can start rebuilding a credit score by making payments on time and not taking advantage of every offer for a credit card that comes you way.