Closure of a home loan is an aspect that is as important as finding the right bank for financing and paying the installments on time. Many Bankers observe that the borrowers forget to complete the formalities and take back the documents after pre-payment of loans or after paying the last installment. This is because after paying, the borrowers usually think that now I have completed all the responsibilities and have no liabilities. But they couldn't be more wrong. There are certain important documents that were submitted at the time of taking the loan and that need to be retrieved from the bank.
What Do I Need To Retrieve?
You have to get back the documents of owner's coverage, title insurance, statement, loan papers, additional contact papers and most importantly, the No-Due Certificate/Settlement Statement and Title Of Deeds.
What Is A No-Due Certificate/Settlement Statement?
This written document certifies that there are no outstanding dues on the housing loan to be paid by you. Issued by the lender, this statement has become very important after the 'Credit Bureau' was formed. For long-term loans, say for example, extending over 10 years and more, the borrowers do not keep track of the times when the cheques were delayed or bounced. Now the bank can penalize such borrowers to the tune of a few thousand rupees. If the charges are not paid then you are a defaulter even if you have paid the principal and interest amount in full.
What Is A Title Of Deeds?
This is another important document that traces the title of property back to at least 13 years. you will require this document in any future property selling transactions. It confirms your right to sell the land/plot/house and you need to show the original document to any prospective buyer as photocopies won't do. Since this document is pledged at the time of taking a home loan so you must remember to get it back, once the term is over. So, if you are going to take a loan, have already taken it or are going to pay the last installment, then this write-up will be very beneficial to help in closing the home loan with success.