Isn’t it a relief to reach the end of your housing loan tenure? But before you rejoice, have you completed all the closure formalities? The home loan closure process indeed involves many steps. No wonder keeping track of each of them can be a difficult task.
Looking for a checklist to help you out? Here’s a home loan closure checklist to make home loan closure easier.
1. Confirm there are no outstanding dues
One of the first steps towards loan closure is making sure there are no pending dues. To do this, first, compare the loan amount to your home loan statement. When you do this, make sure you also factor in thehome loan interest rates over time.
Also, take a no dues certificate/no objection certificate (NOC) from your lender, stating all dues are cleared. This makes future loan applications easier.
2. Update your records
Do you know what else makes future loan applications easier? Updated records. Make sure you get your credit history and loan statements updated from your lender. This is crucial because they are proof of your creditworthiness and your debt repayment record, respectively.
Remember, with updated repayment records, you can get benefits like lower home loan interest rates, relaxed eligibility, etc., in case you get another loan.
Additional Read: Important Things to Consider Before Transferring Your Home Loan
3. Get a non-encumbrance certificate from your lender
Unlike the no dues certificate, the non-encumbrance certificate is an all-in-one legal document with a list of property transactions. So, get the non-encumbrance certificate and ensure it is updated. It can be used to testify your loan repayments along with your CIBIL score and loan repayment history and benefits any future loan application approvals.
4. Collect the original documents
While applying for the loan, you submit a bunch of original documents, including the sale deed, loan agreement, title deed, power of attorney, etc. Make sure you collect them during loan closure. Also, given the long tenures of home loans, the documents could be damaged over time, or there might be some missing pages. This makes it extremely important to check if all the submitted documents are present, and more importantly, in good condition.
5. Collect any post-dated cheques submitted to the lender
Several lenders ask loan applicants to provide post-dated cheques in case you default on any EMIs. Collect these cheques after loan repayment if you haven’t missed any EMIs. On a side note, if you’ve struggled with paying EMIs on time, use a home loan EMI calculator to estimate repayments in advance the next time you apply.
6. Get the lien on the property removed
Along with giving your lender property rights until you repay your debt, a lien prevents you from selling a property afterwards. Hence, getting a lien removed is essential, especially if you’ve purchased the property as an investment.
Additional Read: Why Should You Opt For Home Loan Refinancing When The Rates Are Low
Using the above checklist, you can ensure you don’t miss any steps during the closure process. And if you are looking for a credible lender to finance a new home loan, Tata Capital is at your service. We offer minimal documentation, attractive home loan rates, and different modes for customer service too! Visit our website to learn more about the loan products.