The closing of a home loan is indeed a happy moment as your home really belongs to you now.
You may celebrate after the loan is over, but never forget 5 very important things among them.
This includes the original documents of the house, no due certificate and your credit update.
New Delhi. If you have taken a home loan, then its EMI will be affecting your financial management a lot. That’s why everyone wants their home loan to end as soon as possible. After the home loan is over, you do not need to give a huge amount to the bank every month and you start saving extra money.
At the same time, you also get satisfied that now your house really belongs to you and there is no liability left on it. It really is a happy moment. However, in the midst of these happy moments, you should keep 5 things in mind so that you can avoid any further trouble. Let us know what are those 5 things that you should do without forgetting after paying off the home loan.
Collect the original papers of the property from the lender
Whenever you take a loan for the house, you have to submit the documents of the house to the bank. That is, the house is collateralized or mortgaged. When you repay the loan, don’t forget to take the original documents from home from the bank. Remember that the papers are intact and whether every page is there or not.
This certificate verifies that you are no longer liable to the bank and that you have repaid the loan in full. Along with this, it is also written on it that the lender no longer has any claim on your property. Check this document also thoroughly and see whether your name, address and other important details are written properly or not.
Remove lien on property
The right to retain someone else’s property until the loan is repaid is called a lien. Many taxpayers levy a lien on the property. Therefore, after the loan is repaid, remember to get it removed from your property. Once the lien is removed, you can sell your property without any hassle.
The Encumbrance Certificate contains the details of all the transactions in relation to your property. While giving the loan, the taxpayer levies a charge on your property as some security, this is called encumbrance. By getting a non-encumbrance certificate, it is ensured that there is no longer any charge left on that property.
Credit record is updated or not
Whenever you take a loan, it is reflected on your credit score. After the loan is repaid, ensure that your credit record is updated so that you do not face any problem due to credit score while taking any loan in future.
FIRST PUBLISHED : September 20, 2022, 07:50 IST