Becoming a debt-free homeowner is a financial feat. However, you can’t afford to skip some due diligence when closing your home loan.
Here are five things you should do when closing your home loan.
Collect the original property documents from the lender
When you close your home loan, gather all original documents given to the lender at the time of loan disbursement. These documents would include the Bill of Sale, Builder-Buyer Agreement, Letter of Assignment, Letter of Possession, Agreement of Sale, and any other documents submitted to the lender.
Read also: House construction loan: can you benefit from tax deductions when building your house?
Obtain a certificate of non-contribution
Collect it from the lender immediately after your home loan is paid in full. This document states that you have paid all your arrears and that the lender has no rights to the mortgaged property with him at the time of disbursement of the loan.
Soumee Bhatt, General Counsel, Bankbazaar.com, explains: “The ‘certificate of no contribution’ will save you legal trouble. This ensures that you will not have any disputes in the future with the lender regarding your loan, which you have already repaid in full.
Obtain the lien on the removed property
Lenders add a lien to the property when you borrow money to buy a home. Be sure to remove the lien to enjoy an absolute right to your property.
Obtain a certificate of non-charge
The charge certificate contains records of all financial transactions related to your property. The No Charge Certificate, on the other hand, is a legal document that states that there are no charges registered against a property. Once you have paid your dues, this refund must be reflected in the charge certificate.
Check if your credit reports are up to date
After settling your home loan, make sure your credit reports are up to date. Keep track of your credit report and have the paid loan removed from your records.