Process of closing home loan

November 10, 2015

Loans

Home LoanOwning a house is like a dream come true. Having a house is like having the biggest asset ever. It is like a high security and a feeling of satisfaction that no matter what happens, even in the hardest of time the home- a personal property would be there to save the people living in it. Building up a house needs a huge amount of money to be invested and people mostly tends to take up home loans for building up a house as they cannot afford that huge amount from personal savings. Some people even keep their own house as a mortgage to the banks or lenders in order to take up loan for some other needful purpose.

Paying back the amount takes years and then when the last installment or the last EMI is paid, it brings in a feeling of great relaxation and it is the time to close the home loan once and for all. The feeling of coming out of debt is such huge that people often tend to forget the little checks that are needed to be done while closing a home loan. These small mistakes or miss outs can turn in to a great one or bring big hurdles later in life. The procedure for closing a home loan is not only valid in case of home loans but is also valid in case of any loan taken. It clearly means that regardless of the fact what loan is it, the points to ponder while closing the loan remains the same.

Firstly, people are required to submit an entire list of original documents as asked by the bank or the loan lender at the time of borrowing the loan. Hence, it is important to take back each and every original document from the concerned lender at the time of closing. One needs to be very careful with the taking back of documents. Some lenders, especially banks provides one with a stamped paper that contains the list of documents that have been submitted. One must cross check the list while taking them back. It is recommended to take the documents personally and not via courier or post as it may lead to missing out on documents.

Secondly, getting the NDC i.e. No Dues Certificate from the lender is utterly important. This certificate issued by the lender states that the entire amount of the loan along with the interest have been paid by the borrower and there are no due payments left. This certificate is important when a person takes up future loan on the same property.

Thirdly, if there is any lien on the property then one must consult with the lender and get it removed by visiting the registrar’s office along with the lender. Removing lien means that the lender now has no interest on the property and he does not have any right on the property any more.

Last but not the least, getting the CIBIL report that contains each and every detail of transaction made is important as it matters when people take up further loan or even credit cards.

.

Home loan