The Four Must Dos before You Close Your Home Loan
Apr 12, 2017 Home Loan
It must be dream come true for you to live in your own house without the burden of Home Loan. So that you don’t miss anything the following article will give you the necessary information on home loan closure that every home owner should complete when they are closing their loan.
1)Do not forget to take back your original Documents from Lender:
At the time of the closure of your home loan, do not forget to take back the entire bunch of important documents, in original copy that you had submitted at the time of taking the loan. You would require all the documents if you want to sell the house or want to take a loan against property. Here is a checklist of the important documents :
Original Sale Deed
Original Conveyance deed
Power of Attorney
Possession Letter
Your Payment Receipts
Any Cancelled Cheque’s given
You can also collect a copy of a letter, that mentions what all documents were submitted by you to the lender at the time of taking the loan. This letter proves to be very helpful as there is no scope for later confusion as the lender is also accountable towards the customer. You must personally go to the branch and collect all the documents yourself.
2)Must collect NOC from the lender
NOC or No Dues certificate certifies that you have repaid the full loan and no outstanding balance exists. It is an extremely important legal document that is provided by the lender. You must check if your NOC has the lender stamp on it.
3)Remove Lien from Registrar Office
In case you do not know, the meaning of the word “lien” is a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
In simple language, it means that if the loan taker is not able to pay back the loan, the lender will keep the right to sell the property themselves.
So, if your lender has put any lien on your property, then you should ask them to help you to remove the lien and overall process. This is so because; otherwise, you will face difficulty at the time of selling the house in future. After the lien from your property has been cleared, you can verify it back by applying for a new encumbrance certificate. This should mention that no one has any legal rights in the property.
4)Make sure your CIBIL report is updated with CLOSED entry
CIBIL is Credit Information Bureau of India Limited. It acts as a central repository of credit information in India. Coming to home loans CIBIL checks whether you are paying the loans on time. It also records each of your loan entry and all your actions of payment. In fact, these days each lender checks this CIBIL report before giving any kind of loan to you (even when they give you a credit card). Therefore, once you have closed your home loan and an entry called “DATE CLOSED” should appear on your CIBIL report with the date of closure.
By taking care of all these aspects, you can make your Home Loan closure 100 percent full proof.
1)Do not forget to take back your original Documents from Lender:
At the time of the closure of your home loan, do not forget to take back the entire bunch of important documents, in original copy that you had submitted at the time of taking the loan. You would require all the documents if you want to sell the house or want to take a loan against property. Here is a checklist of the important documents :
Original Sale Deed
Original Conveyance deed
Power of Attorney
Possession Letter
Your Payment Receipts
Any Cancelled Cheque’s given
You can also collect a copy of a letter, that mentions what all documents were submitted by you to the lender at the time of taking the loan. This letter proves to be very helpful as there is no scope for later confusion as the lender is also accountable towards the customer. You must personally go to the branch and collect all the documents yourself.
2)Must collect NOC from the lender
NOC or No Dues certificate certifies that you have repaid the full loan and no outstanding balance exists. It is an extremely important legal document that is provided by the lender. You must check if your NOC has the lender stamp on it.
3)Remove Lien from Registrar Office
In case you do not know, the meaning of the word “lien” is a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
In simple language, it means that if the loan taker is not able to pay back the loan, the lender will keep the right to sell the property themselves.
So, if your lender has put any lien on your property, then you should ask them to help you to remove the lien and overall process. This is so because; otherwise, you will face difficulty at the time of selling the house in future. After the lien from your property has been cleared, you can verify it back by applying for a new encumbrance certificate. This should mention that no one has any legal rights in the property.
4)Make sure your CIBIL report is updated with CLOSED entry
CIBIL is Credit Information Bureau of India Limited. It acts as a central repository of credit information in India. Coming to home loans CIBIL checks whether you are paying the loans on time. It also records each of your loan entry and all your actions of payment. In fact, these days each lender checks this CIBIL report before giving any kind of loan to you (even when they give you a credit card). Therefore, once you have closed your home loan and an entry called “DATE CLOSED” should appear on your CIBIL report with the date of closure.
By taking care of all these aspects, you can make your Home Loan closure 100 percent full proof.
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