Home Loan closure formalities you must know

 A home loan closure usually happens when you almost reached the time when the loan tenure almost ends. Congratulations to you firstly for the completion of a home loan without any default. Since you are almost close to a home loan closure, you need to take care of your formalities that need to be done on time. There are various legal formalities and procedures that you need to take up step by step to close your home loan in the right manner.

It is important to understand that every debt that you take on in your life hugely impacts your credit health. Therefore, it is important to have a proper home loan closure with all the documents and formalities in the right order. Below, we are listing a few steps that need to be done to close your home loan or go for a home loan balance transfer in the right way.

• Retrieve all the original documents that you have submitted with the loan provider. At the time of taking a home loan, you would surely submit one or more than one document with the loan provider as a piece of security. It is time now to get back or retrieve those documents back from your loan provider or financial institution. Since you’re going to close the home loan with a particular loan provider, you must complete the documentation part and make sure that you are not leaving behind any document that is important for you.

• Get the no due certificate from your loan provider or financial institution. A no-due certificate means that there is no outstanding or overdue amount pending in the home loan with your loan provider or financial institution. This certificate is important to understand that you have completed the repayment process completely without keeping any overdue. It is a formal document that every home loan borrower needs to have at the end of the home loan closure.

• Loan providers may place a lien on your home property to retain the loan amount in case of a default. Since you are closing a home loan, it is the right time that you get the lien removed from your property. This is important because you need to be sure that the loan provider does not have any right over your property anymore. Since you have completed the repayment and there is no chance of default, you need to take off the lien from your property.

Wrapping up

A home loan is indeed one of the best ways to make your dream come true. However, if you do not borrow from the right loan provider you may end up having a home loan balance transfer. Hence you must get an affordable home loan and close it with the right formalities