Paying off home loans can be a burden and it might take years to pay them off. But there are people who are lucky to make a pre-closure of their loan. A pre-closure is made when the borrower is able to make a part or full payment of the home loan they availed for. So getting a sudden bonus might be helpful for you to pay off your home loan. This way you can reduce the interest rates that you pay for your loan.
Additional Reading: All you need to know about Pre-Closure of Loans
But as soon as the pre-closure is made, you would have to make sure that a few things are taken care of:
Get your original documents from the bank:
Make sure that you get back all your original documents that you had submitted to the bank. Ensure that they are all returned in proper order and nothing is missing. Once you’ve signed the acknowledgment receipt that states that you’ve got all your documents, the fact that a document was missing won’t be entertained.
Get your Non - Objection Certificate (NOC):
An NOC is a legal document issued by the lender to a customer declaring that he/she does not have any outstanding dues towards the home loan availed. You have to get one so that there is proof that you are debt free.
Your credit score should be updated:
Once you’ve closed the loan you would have to make sure that your credit score is updated so that you’ll be able to avail new credit in the future.
Get lien removed:
A lien is a transaction that is registered at a registrar's office that ensures that the home loan borrower doesn’t sell his/her property. Now that you’ve closed your loan you can get it removed.
Keep track of loan repayments:
It is better if you keep track of your bank statements which reflects your loan EMI. If you’ve made a pre-closure, keeping a photocopy of the cheque or demand draft. Because if an issue arises with the bank, you would have proof that you are the owner of your property.