Buying a home is the biggest financial investment for most homebuyers. You can avail a home loan for buying a flat. You can clear your loan even before its tenure. However, there are certain things you can do when you close your home loan to avoid problems in future. This insight is brought to you by Vishraam Builders, eminent builders of apartments in Thrissur.
Get original documents released
Once you clear the debt to the bank, they will release all the original documents of your flat, including the sale deed and the mother deed. Do make sure that all the documents submitted to the bank are returned and are in proper order. The bank will not take responsibility after that.
The NOC or a no-objection certificate is issued by the bank or the lender stating that it does not have any interest in the property after the loan is closed. Ensure that the NOC clearly mentions your name and address, home loan account number, date of loan closure, etc. Do get a clause inserted that the property is debt-free.
Update the CIBIL score
Get the bank officials to update your CIBIL (Credit Information Bureau India Ltd) score after the loan is repaid.
Get lien removed on property from registrar office
Banks often create a lien which is registered in the registrar office. This prevents the loan borrower from selling the property. After loan closure, ask the bank official to get it removed.
Procure legal clearance certificate from lawyer
It’s only optional that you get a legal clearance certificate from a reputed lawyer.
Apply for new encumbrance certificate
You can apply for a fresh encumbrance certificate in the Registrar Office for your apartment after the loan has been prepaid and the lien, if any cleared from your property.
Keep a detailed track of loan repayments
Keep a track of bank statements which reflect your loan EMI and the photocopy of any pre-payment done in a lump sum amount. This is an evidence to prove that the loan was paid and that you’re the absolute owner of the property.
Collect post-dated cheques
Take back the security cheques given to the bank as security when you started the loan and destroy them to prevent misuse.
After paying all installments and outstanding dues, write a letter to the bank requesting a return of the original documents or copies needed. Within 7 or 10 days, the bank will return your original documents and issue a closure letter. It will also give an NOC which needs to be taken to the Registrar’s Office to get the lien removed in the presence of a bank representative. If the mortgage is not registered, the bank will simply return the title deeds.
We hope this list of things you can do when you close your home loan has been helpful for you. Check out flats for sale in Thrissur by Vishraam Builders and buy your dream home. Book now!