When you first took the home loan, it seemed like a good idea to have a co-applicant. Maybe it was the higher financing, or a higher credit score or lower rates of interest that made you think it was a great option.
Now? Not so much. Times change, and so can the co-applicants of the loan. Maybe they do not have a good credit score. Perhaps they have somewhere else they would instead dedicate their funds to. Maybe you don’t want the added liability. Whatever your reasons are, if you are wondering how to remove the co-applicant in a home loan – this is the guide for you.
It is a reasonably straightforward process. Before you apply, you should be ready with specific documentation.
The first step to removing a co-applicant is contacting your lender and asking for a novation. A novation is a declaration that the responsibility of repayment of the loan is shifting to just one person instead of two. You must keep in mind, though, that not lenders allow this. Therefore, it is a good idea to check your lender’s terms on this before you apply for a loan.
The next step is showing why you would like to remove the name of a co-applicant in a home loan. Many lenders will demand evidence – and you should have it ready. In case the person has a low credit score, then relevant documents must be prepared. In case they do not have the finances to make the monthly payments on the home loan – a record of their salary is the document to show.
Proving your eligibility
If your co-applicant cannot do it, can you? This is the question that you must answer while verifying your home loan eligibility. You may have to furnish additional documents supporting the fact that you can make the payments required on a loan. You can submit salary slips, bank statements, and other documents to prove that you are eligible to repay the loan by yourself. If you want to take on a new co-applicant, now is the time to add them to the documentation.
Additional Read: What are Joint Home Loans? Eligibility and Documents Required for It
Refinancing with Tata Capital
Maybe you are in a situation where all the above steps have failed. Your co-applicant is not budging, or perhaps, your eligibility is not strong enough. In this case, your best option is to refinance the loan. Refinancing means that you transfer the balance amount of the home loan from one lender to another.
You can avail a home loan transfer from Tata Capital today. You can take advantage of the low-interest rates, flexible financing options, as well as a variety of other benefits. The best part is that with a loan transfer, you can easily remove your co-applicant in a home loan.
Are you looking for instant financing, removing a co-applicant, or a regular loan transfer? Or maybe just looking for low-interest rates and instant approvals? Look no further. Tata Capital has you covered.