Getting and paying back a home loan is a major financial task one goes through. People put a lot of efforts while taking a home loan and paying it back every month by EMIs. You may know the do’s and don’ts you have to follow while taking a home loan. But do you know what you should do when you are done with your entire home loan EMIs? Well here we have a list of things you should take care of before closing your home loan…
You collect all your original documents from your lender
As home loan is a type of secured mortgage loan, you are supposed to keep your documents as collateral to the bank/NBFC from whom you got the home loan. The original documents of your property are kept with the loan lender until you pay the loan back within the given tenure. So when you pay back the loan, don’t forget to collect all the original documents of the house from your home loan lender. These documents include the sale deed, title deed, loan agreement, power of attorney etc. When you collect these documents, remember to check that all the documents are intact and they aren’t damaged.
Obtain an NDC from the lender
NDC means ‘No Dues Certificate’. NDC clarifies that you have settled all your dues towards the loan lender and now the lender does not have any rights or claim on your property. The NDC has the loan details on it like including the address of the property, name of the customers, loan account number, amount of loan and date of starting and closure of the loan. If you plan to sale or rent your property in future, you will require the NDC from the bank/NBFC.
Ensure that your credit records are updated
When you have an ongoing loan, it certainly affects your credit score. If you pay your EMIs on time it proves to be a good sign for a healthy credit score. When you have a loan going on, it showcases on your credit report. It’s considered as financial obligation and you might find it like a hurdle when you apply for another loan or credit card. So when you close your home loan, make sure that your this particular financial obligation is also closed on your credit score report.
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