Buying a new home is one of the biggest financial decisions that you will make and the process can be both smooth and tricky. You have a big role to play in making your new home buying experience as smooth as possible.<\/p>\n
Your Shariah mortgage pre-approval process works similar to a conventional mortgage process which is based on several factors, one being your credit score. A small misstep may impact your approval and become problematic at the closing.<\/p>\n
Here is a handy list of Do\u2019s and Don\u2019ts that will help you prepare to get the best deal and make the home buying experience a great one.<\/p>\n
Your credit score shows an overview of your financial credibility and your ability to make payments. When entering into a partnership<\/a> with Guidance Residential, your credit score is considered for the amount required for an initial payment, how much you may qualify for and the profit rate<\/a> you are offered. This is why providing a good credit score when applying for your Islamic mortgage will facilitate the process smoothly.<\/p>\n There are steps you can do now to build confidence with your home financer as you prepare to apply for financing your home. Follow these Do\u2019s to help you prepare.<\/p>\n To get the home financing process started as promptly as possible, have your financial documents on hand and ready to send over to your Account Executive<\/a>. This includes identification, income and asset and employment history documentation. Check out our handy checklist<\/a> for a full list of information and documentation required for applying.<\/p>\n When purchasing a home, maintaining a sufficient amount of funds in your account to cover closing costs and down payment is essential. The down payment amount may vary based on the price of the home you are purchasing, but Guidance Residential<\/a> has programs with low down payments.<\/p>\n When receiving cash gifts to use towards the purchase of your new home, ask the giver to transfer the funds to you via check or wire transfer as you will need to provide documentation. Get in touch<\/a> with your Account Executive for the proper documentation required, including a gift letter.<\/p>\n While in the home buying process, minimize purchases on your credit card to maintain your good credit score. Save major purchases for after closing on your new home. Keep the process smooth sailing by sticking to a budget and keeping a clean slate on credit cards.<\/p>\n Changing your living arrangements could change your financial standing. So continue living at your current residence during the financing process and avoid delaying your closing.<\/p>\n While there are steps you want to do, there are also items you\u2019ll want to avoid. The following items can hurt your credit, leading your home financer to potentially lose confidence in providing financing.<\/p>\n When applying to finance your new home, hold off on purchasing that new car or making other large purchases until after closing. Those major purchases and the following could alert red flags and change your credit score:<\/p>\n Avoid making alterations to your credit lines as this too could raise red flags for your credit score. The length of your credit history, payment history and credit utilization all determine your credit score, so any changes to it could negatively affect your standing. Consider the following:<\/p>\n Again, red flags may be alerted when making changes and this also includes major life changes. Keeping things consistent will avoid any impact on your credit score. These life events include:<\/p>\n Video Embed: Guidance Residential – Do’s and Don’ts when financing your Home<\/a><\/p>\nDO\u2019s\u2014Expert Tips from Islamic Mortgage Experts<\/h2>\n
Do Organize Your Financial Documents<\/h3>\n
Do Maintain Sufficient Funds<\/h3>\n
Do Collect Cash Gifts<\/h3>\n
Do Keep Credit Cards Usage at a Minimum<\/h3>\n
Do Continue living at current residence<\/h3>\n
DON\u2019Ts\u2014Avoid These Pitfalls When Applying for an Islamic Mortgage<\/h2>\n
Don\u2019t Make Large Purchases or Move Large Sums of Money<\/h3>\n
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Don\u2019t Make Alterations to Your Credit Lines<\/h3>\n
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Don\u2019t Make Major Life Changes<\/h3>\n
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