Being able to pay off your Home Loan fully is a moment of extreme joy (tinged with relief, of course). Paying that last EMI of the loan is one of the best moments of your life. You feel relieved and burden-free as with no instalments to pay, you get some extra cash every month. Plus, you have a home to call your very own! Although all this excitement is justified, you also need to keep a couple of things in mind that are necessary to close your Home Loan properly.
In case you fail to complete all the required formalities, it might become the primary cause of your worries in the future. To simplify your life, here’s a five-point checklist of things you need to keep in mind while closing a Home Loan:
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- Take all your original documents back
One of the most important things to keep in mind while closing a Home Loan is to get back your set of original documents, like the sale deed, power of attorney, possession letter, payment receipts, insurance letter and guarantor’s letter. If you forget to take these documents back, it might become a problem for you later when you want to sell the house or want to take a loan against property.
- Get a closure certificate
It’s important to get a closure certificate that basically states that you’ve paid back everything and that all of the bank’s dues on the Home Loan are cleared. This No Objection Certificate (NOC) is proof that you don’t owe anyone any money legally and hence, if someone claims otherwise at a later point, you can produce the NOC.
- Make an estimate of the final settlement
Be present when the bank officer is computing your final settlement. This helps you keep a track of everything and find out if there are some additional charges that can be avoided. Also keep in mind that no pre-payment charges apply to most Home Loans now.
- Be prepared to pay a slightly more that you anticipated on your final payment
The bank might ask you to pay slightly more than the original amount. This includes the interest charges that are applicable on your final agreement cheque. The final amount will always be more than what you’d calculated as the cheques take a couple of days to be cleared. So, it’s better to be prepared for it.
- Be sure to recheck everything
Rechecking everything is highly advisable as it can help you avoid repeated visits to the bank later. Check all documents and everything related to your loan to ensure that you don’t leave anything incomplete.
Once you’re done with this five-point checklist, you’re good to go! In case you’ve found the perfect house, but not the best loan options, don’t worry. We’ve got you covered!