Are your creation prepayment of your house loan?

13 Dec

6 Serious Events at the time of closing your Home Loan

Finheal
Home Loan
Tags: applying for the loan, CIBIL Score, EMI
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Are your creation prepayment of your house loan? Or, are you settle your mortgage with your bank? Keep in mind to do these 6 things at the time of conclusion!

Collect the documents

A person has to offer the original papers of the property while applying for the loan. Make sure that an entity collects the entire original document submitted to the bank after all the EMI’s are cleared. Once a person signs the permission that he has collected all the documents than he cannot responsibly the bank if any one of the documents is left to be collected.

Collect no objection certificate (NOC)

Once loan clean and documents are collected. An entity should get a NOC from the bank. This certificate states that all the dues have been cleared by the customer and no payment towards the loan is missing. The certificate should take in all the particulars of the property against which the house loan has been in use.

Get rid of lien on the property

In some states, the bank may have registered a deed with the registrar for the home loan if the credibility of the borrower is doubtful. Once all the dues are empty by the borrower it is necessary to come to an end the lien. The continuation of the lien will not allow the borrower to sell his property.

Update the CIBIL Score

A borrower of the loan should ask the bank to get his CIBIL score updated. It is necessary to update the CIBIL score because it makes easier to get the upcoming loans if the CIBIL score is good (i.e. 750+).

Obtain a new Encumbrance certificate (EC) from the registrar

Once a person has acknowledged NOC and cancelled the existing lien on the house loan. It is necessary to apply for EC certificate from the bank. This certificate gives detail about the financial transactions carried on the property. This will complete the home closure process.

Make confident you close your loan account and not resolve it.

Remember, if you do resolution with the bank on your awaiting loan amount then you CIBIL score will get impacted. No agency will amend the credit report. CIBIL agency checks the borrower’s credit report. CIBIL agency keeps a check all the way through a DPD i.e. Days past due how many months of payment are still undue. It contain the past 36 months of the credit information of a borrower. So once the sum is done, it will take 12-24 months to improve the CIBIL Score.

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Finheal

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