After the last payment of the mortgage has been made, many first-time purchasers will finally be able to experience the full satisfaction and delight of homeownership. In spite of the happiness that comes with no longer having to make monthly EMI payments, it is essential to keep your composure and focus on the process of closing the account. Make sure that you keep the following advice in mind at all times so that you can prevent any legal challenges or issues after the closing of your house loan:
Get NOC and NDC from the Lender of your loan
Like all financial aspects have a record, why should completing the payment be an exception?
Once you are done paying all your dues on your home loan, it’s mandatory to get a NOC and NDC from your lender who provided you with the Navi Home Loan. Your NOC will be the legal document that testifies that you have paid the complete magnitude of the loan and henceforth your loan account is going to be closed with the bank. This document is provided by the lender and contains relevant information like your name, details of property, your loan account number, last payment date and other related details etc. Be sure to check all these details carefully also paying attention to the spelling of your name and property address details alike. It is important to note that if you miss any error in this document then chances are that your HDFC home loan status will likely be remained open.
The borrower’s name, the loan account number, specifics about the property used as collateral for the loan, the date the loan was paid off, and other pertinent information are typically included. This document must also include a statement to the effect that the lender no longer possesses any jurisdiction over the property in question, as the borrower is the sole owner of the asset at this point in time.
Retrieve all of the original papers
At the time of closing on your Navi Home Loan, after checking Navi Home Loan EMI Calculator, the lender is required to return any and all of the borrower’s documents that were retained during the application process for the loan. In most cases, the lender will supply you with a list of papers (LOD) that were filed together with your loan application. The borrower is responsible for verifying that all original papers match this LOD and ensuring that they are retrieved once the loan has been closed. These can contain things like bank account statements, proof of income, property documents, deeds of sale, letters of possession, and so on. Make sure that no pages are ripped, or documents are misplaced at any point. It is expected that they will be in fine condition and have all of the original pages.
In addition, some loan providers may require borrowers to provide security cheques before disbursing the house loan funds in order to recoup some of the money lent in the event that monthly payments are missed (in future). Consequently, when the loan is paid off, you need to make sure that in addition to retrieving your original documents, you also retrieve those cheques.
Make sure the information about the closure is correct in the database of the credit bureau.
When you apply for any kind of credit, whether it’s a credit card or a loan, after using Navi Home Loan EMI Calculator, most lenders immediately alert the credit bureaus of the event. This can be done automatically or manually. However, when you prepay the loan or shut the loan account, the lender may not act so fast in updating this information with the credit bureaus, or even worse, they may neglect to inform the relevant agency of the change. When you have finished paying off your loan with the lender, make sure to request that they also contact the credit bureaus. In this way, the credit bureaus will be able to update their records, and the changes will be shown in your credit report.
Keep following up with your lender until the information is updated in your credit report, and in the meantime, continue to monitor your credit report. Alternately, when the allotted amount of time that was specified by the lender has elapsed, you might want to think about making an online request to the credit bureau that is concerned with updating your records.
Get the lien removed from the Registrar’s records
When a lender is unsure about your ability to repay a loan even after using the online Navi Home Loan EMI Calculator tool, they may put a lien against your property, also known as a registered mortgage. This is a legal claim against the asset that was mortgaged to secure the Navi Home Loan. Sometimes, when the lender is unsure about your ability to repay, they do this. If you were to default on your loan, the lien would give the lender the authority to sell the property in order to recoup any money that is owed to them. In addition to this, the house loan borrower is prohibited from selling the property before the loan is paid off since the lien is placed on the property. Ensure that you have this lien removed from the office of the local Registrar in your city while you are in the process of closing your loan. Doing so will help you prevent any legal issues or other complications that may arise regarding the ownership of your property after the loan has been closed. While deciding whether or not to grant your request to get rid of the lien and cancel the release deed, the Registrar could ask for a copy of your NOC certificate.
Obtain the most recent certificate stating that there are no encumbrances (EC)
The encumbrance certificate is a legal document that describes in great detail all of the financial dealings that you have had with the property that is being used as collateral for a home loan. After the loan has been paid off, the certificate needs to be updated to reflect all of the payments that were made. This document verifies that your property is not subject to any financial or legal obligations; as a result, it eliminates the potential for the Navi Home Loan lender to place any restrictions on the sale of the property in the event that the borrower decides to do so at any time after the closing of the home loan.
