Planning for pre-closing your home loan? don’t forget to collect these documents
Oct 04, 2017 Home Loan
Home loan is a huge burden and taking it off by pre-paying give a very satisfying feeling. Your home loan might have a duration of 30 years but you as a borrower always have an option to close the home loan before time and get yourself free from paying regular monthly EMI payments. This is exciting but you need to remember that while closing your home loan you need to take care of certain documents.
So here are some insights related to closing your home loan at an early stage that you should keep in your mind.
1) After you pay all your installments and end your home loan, don’t forget to collect all your original documents from the bank or lending institution. Also, collect the acknowledgment from the bank that you have received all the documents. These documents are required for future lending purposes or for reselling your property. It is a responsibility of banks to return back all the original documents in a good format. Check all the documents after you receive them and then sign all the property related documents.
2) When you apply for a home loan every lender ask for security cheques. So when you close your loan make sure that you collect all the cheques.
3) Make sure that you get No Objection Certificate (NOC) from your lender or bank. It is that documents which state that your home loan is completed and there is no outstanding amount left to be paid by the borrower. This certificate is also important for you as it will be required in future while applying for another loan.
4) After your loan gets closed, it is your responsibility to check your credit report, whether it has been updated or not. The credit rating agency usually takes around 40 to 60 days to update. Stay in touch with your bank and make sure the credit report has been updated. After 3 months of closing your home loan, do check your credit score to be confirmed that the score is updated.
5) Encumbrance Certificate (EC) is an essential document that you should collect after closing your home loan. EC is that document which determines that the property is free from all legalities and monetary liabilities. It is a proof that the property has a clean ownership and can be sold freely. The EC can be obtained from the Sub-Registrar’s office. Your EC must reflect on your home loan closure point.
Make a note of all these points while you are preparing for closing your home loan.
So here are some insights related to closing your home loan at an early stage that you should keep in your mind.
1) After you pay all your installments and end your home loan, don’t forget to collect all your original documents from the bank or lending institution. Also, collect the acknowledgment from the bank that you have received all the documents. These documents are required for future lending purposes or for reselling your property. It is a responsibility of banks to return back all the original documents in a good format. Check all the documents after you receive them and then sign all the property related documents.
2) When you apply for a home loan every lender ask for security cheques. So when you close your loan make sure that you collect all the cheques.
3) Make sure that you get No Objection Certificate (NOC) from your lender or bank. It is that documents which state that your home loan is completed and there is no outstanding amount left to be paid by the borrower. This certificate is also important for you as it will be required in future while applying for another loan.
4) After your loan gets closed, it is your responsibility to check your credit report, whether it has been updated or not. The credit rating agency usually takes around 40 to 60 days to update. Stay in touch with your bank and make sure the credit report has been updated. After 3 months of closing your home loan, do check your credit score to be confirmed that the score is updated.
5) Encumbrance Certificate (EC) is an essential document that you should collect after closing your home loan. EC is that document which determines that the property is free from all legalities and monetary liabilities. It is a proof that the property has a clean ownership and can be sold freely. The EC can be obtained from the Sub-Registrar’s office. Your EC must reflect on your home loan closure point.
Make a note of all these points while you are preparing for closing your home loan.
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