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To be Shariah-compliant, our costs must be related to our actual expenses. Our products have a higher documentation fee due to the extra work in product design and assembling documents for a closing—it is not an automated process as it is for a conventional loan. Our profit rate is otherwise the same as an equivalent traditional mortgage. There are a few transaction costs that are higher because of the dictates of the specific deal structure needed to satisfy the requirements of an Islamic financing transaction, such as two deeds to record instead of one. Otherwise, all our costs are the same as a traditional mortgage. We do not charge a premium for religious accommodation.
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khatti... that was brilliant of those 4 families to do so.. but it does make me wonder how the cost, economy, circumstances change over the years.. there is definitely a risk involved but a great idea for privileged ones (that is be able to save 50k every year) nonetheless!!
Twinklestar.. forget the paint color.. husband will even put up the walls if needed, thats how handy he is.. alhamdulillah! We are not very picky about the house itself, its the location, schools, and our budget that matters the most to us!
Not my personal experience but someone I know told me that one of his family member had not a very good experience with Guidance. Do you know anyone who has taken the mortgage with Guidance ?
We are on a tight budget too. With our budget, I tell my husband we are better off renting ...lol ... but he wants a house for the kids.
sarad..no I dont know anyone who did this with guidance.. do you know what happened to the other family?
Our budget isnt much either but we figured that with the rising cost of rent, that is just going to waste.. we also live in the area with a very high rent so after doing all pros n cons, we have a budget that we can afford the monthly payment after including all expenses!!
sarad..no I dont know anyone who did this with guidance.. do you know what happened to the other family?
Our budget isnt much either but we figured that with the rising cost of rent, that is just going to waste.. we also live in the area with a very high rent so after doing all pros n cons, we have a budget that we can afford the monthly payment after including all expenses!!
I think he said that they came up with some additional costs at the time of or near closing. Also I think the entire communication from Guidance side was not very efficient. But we are in midwest so may be the regional office and representatives are different in your part.
Have you asked different banks before deciding to go with them ? How has your experience been so far with them ? If it has been good then dont worry. But do make sure what all costs you will have to pay.
sarad.. I have found out about a family in our state who bought the house with guidance.. I am waiting to hear back from them about their experience.
Also, one of my friends is working with guidance, unfortunately she is not licensed for our state but she will be helping me to review paper work and make sure everything works out fine inshaAllah. I am hoping we will have a positive experience.
customer service so far has been great as well.. I communicated with one of account executives and he is handling my paper work.. very informative and easy to talk to person.. lets see how things go.. I will share my experience as we move forward!
make sure that the neighborhood you have in mind, you drive through that neighborhood on a good sunny and warm late afternoon. You certainly want to see what kind of kids playing on the street (not to mention the cars that are parked outside the houses). You can change everything in the house but cant change your neighbors, once stuck with them.
If I were you, I would avoid neighborhoods that have RV's and boats parked on their driveways. That is a tell tale sign of people who dont know how to manage their money, which means that probably dont know how to manage anything else either.
Tlk..thanks for the advice.. we are doing a lot of drive bys in the neighborhood to make sure it's what we want.. so far, so good! but again we are still looking! I also dont want our next door neighbor to be 2 miles from us, which is the major concern in our area!
but but but I want to have an RV someday.. and load up all my children and go on a road trip!!! :day dreaming:
What is the opinion on buying "foreclosed" homes? I've heard it being said that you're basically profiting off of someone else's misfortune...which I don't think is correct, but Im nto sure.
What is the opinion on buying "foreclosed" homes? I've heard it being said that you're basically profiting off of someone else's misfortune...which I don't think is correct, but Im nto sure.
Foreclosed homes are when owners stop making payments and bank repossess and brings it back to the market. Because its a liability on the bank, and because house market is down, bank has to sell the house at a current market price, or sometimes lower as house is left in a shabby condition and banks hardly reinvest in a property to fix it. Having said that, buyer does not profit any more than if buyer is going out and buying a regular home (at least that is what my understanding is).
I have seen a few people buy foreclosure homes.The houses themselves were not in good shapes initially so they paid a lot less than similar houses in the neighborhood.After the needed renovations (nive renovations,not anything too expensive or over the top),I have heard them tell that they made a profit and the resale value of their homes is really good.I am not sure if that is always the case or even if it works this way.
I have seen a few people buy foreclosure homes.The houses themselves were not in good shapes initially so they paid a lot less than similar houses in the neighborhood.After the needed renovations (nive renovations,not anything too expensive or over the top),I have heard them tell that they made a profit and the resale value of their homes is really good.I am not sure if that is always the case or even if it works this way.
if buyer is good in DIY and can fix it himself, I can understand that they could make a little profit, but if they hire contractor then I doubt
sara.. so TLK explained what forclosed houses are.. usually the homes are in much needed repair and you do end up spending money on it to make it habitable.. the advantage is less down payment, you get to pick and choose things as you like, and of course work on your own pace. We wont mind buying something like that either if it's at least ready for move in and then built as we go.
if buyer is good in DIY and can fix it himself, I can understand that they could make a little profit, but if they hire contractor then I doubt
The people I am talking about,both hired someone to do the job.I never saw one of the houses when it was bought but did see the other one.It was not in a good shape.They fixed the main floor a lil bit and moved in.3 years later they have a finished basement with an added room & full bathroom,updated kitchen and a knocked out wall,opening up the living room.I think their bathrooms still need work.They have very happily announced that they made a profit of 100k (as in if they list it for sale today).But as I said,I am not sure that it might work this beautifully for every foreclosed home.I also know that contractors hired to do anything charge you an arm and a leg,so that really diminishes any profit.
I have seen a few people buy foreclosure homes.The houses themselves were not in good shapes initially so they paid a lot less than similar houses in the neighborhood.After the needed renovations (nive renovations,not anything too expensive or over the top),I have heard them tell that they made a profit and the resale value of their homes is really good.I am not sure if that is always the case or even if it works this way.
It is hard to find foreclosed homes in some areas. How does one go about finding such homes? I guess it is easier to find such homes if they are in your neighborhood or in a friend or family's vivicinity then they can giv you the heads up. All the other listings I have found cost you money. Short sales are another option. I guess best thing to do is drive by neighborhoods you are interested in. Short sales and foreclosure are sometimes not listed on multiple listing sites.
Foreclosed homes are when owners stop making payments and bank repossess and brings it back to the market. Because its a liability on the bank, and because house market is down, bank has to sell the house at a current market price, or sometimes lower as house is left in a shabby condition and banks hardly reinvest in a property to fix it. Having said that, buyer does not profit any more than if buyer is going out and buying a regular home (at least that is what my understanding is).
Not neccesarily true anymore. Many banks, such as Freddie & Fannie, are going in and doing cosmetic repairs, as well as roof, foundation etc to make their foreclosures move fast. I have a closing for a client coming up this month that is a foreclosure, house is 5 years old...granite, hardwood floors, all upgraded...HomePath came in and changed all the carpets, freshly painted the whole house...listed it $285,00 (tax appraised value was $310K)..we're closing at $245,000....it's a he'll of a deal for a almost new home I pristine condition!
Showed another one last week where the bank had replaced the roof, carpet, painted and taken care of termites....