{"id":5294,"date":"2022-07-11T12:36:37","date_gmt":"2022-07-11T12:36:37","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=5294"},"modified":"2025-01-13T08:45:44","modified_gmt":"2025-01-13T08:45:44","slug":"checklist-for-home-loan-closure","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/checklist-for-home-loan-closure\/","title":{"rendered":"Checklist For Home Loan Closure In 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">When you are at the end of your home loan EMIs, you must check for all the aspects related to home loan closure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This aspect includes marking off the checklist for home loan closure which will ensure that it is successful. It is to be noted that the home loan closure will be complete only when the lender declares the same.\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check the below points which are required to be on your checklist during the process of your home loan closure.\u00a0<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-5296 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/Graphic1.jpg\" alt=\"Checklist For Home Loan Closure steps\" width=\"810\" height=\"391\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/Graphic1.jpg 810w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/Graphic1-300x145.jpg 300w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/Graphic1-768x371.jpg 768w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/Graphic1-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<ul>\n<li><b>Collecting the original documents<\/b><b>: <\/b><span style=\"font-weight: 400;\">While applying for a home loan, it is important to submit original documents for the process. However, during the process of home loan closure, you will get back the original copies. It is to ensure that all the original copies are provided to you in a good condition.<\/span> <span style=\"font-weight: 400;\">The following<\/span><span style=\"font-weight: 400;\"> original documents <\/span><span style=\"font-weight: 400;\">are<\/span><span style=\"font-weight: 400;\"> submitted during the process of home loan<\/span><span style=\"font-weight: 400;\">:<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-5297 size-full\" src=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/original-documents.jpg\" alt=\"Checklist For Home Loan Closure - original document\" width=\"810\" height=\"391\" srcset=\"https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/original-documents.jpg 810w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/original-documents-300x145.jpg 300w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/original-documents-768x371.jpg 768w, https:\/\/www.homebazaar.com\/knowledge\/wp-content\/uploads\/2022\/07\/original-documents-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Sale Deed\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Possession Letter\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Title Deed\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Payment Receipts\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Power of Attorney<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Loan Agreement Papers\u00a0 <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><b>\u00a0<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><b>Acquiring the \u201cNo Dues\u201d certificate from the lender<\/b><b>:<\/b><span style=\"font-weight: 400;\"> After collecting all the original documents from the lender, now it is important to collect the NOC \u201cNo Objection Certificate\u201d from the lender. This certificate is important as it is proof that there are no dues left against your EMI and you have paid all the amount of your home loan. The lender here agrees that they no more have any legal authority over your property. You need to ensure that you are collecting this certificate right after paying the last EMI of the home loan.\u00a0\u00a0\u00a0\u00a0<\/span><\/li>\n<li><b>Clearing the Lien on the property<\/b><b>:<\/b><span style=\"font-weight: 400;\"> The \u201cLien on the property\u201d\u2019 means the right of the lender on your property. It is put on the property, for the purpose that if the borrower is not able to pay for the loan taken, then the property can be sold and recover the money by selling the house.\u00a0\u00a0<\/span><\/li>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<ul>\n<li><b>Acquiring the modified Non-Encumbrance certificate<\/b><b>: <\/b><span style=\"font-weight: 400;\">The non-encumbrance certificate contains every detail of the financial transactions which are linked to the property. After the home loan has been cleared, you should get the Non-encumbrance certificate updated. You need to visit the registrar\u2019s office and submit an application for issuing this certificate.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><b>Updated credit score<\/b><b>:<\/b><span style=\"font-weight: 400;\"> Credit score declaration is important as it explains your creditworthiness. Once you have paid all the loan dues to your lender, you should ask them to update your Credit Score. The process of updating the credit score may take up to 20 to 30 days. Hence, you must ask your lender to update the credit score as early as possible. If there is any mistake in the credit score report, then you can ask your lender to rectify it.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Collect modified bank statements concerning the home loan repayment<\/b><b>: <\/b><span style=\"font-weight: 400;\">You need to collect the bank statements concerning the home loan repayment because they act as proof that your loan repayment process is completed. This also helps if there is any issue in the future related to the loan.\u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b style=\"font-weight: 400;\">Obtaining all the post-dated\u00a0<\/b><b>cheques<\/b><b style=\"font-weight: 400;\">: <\/b><span style=\"font-weight: 400;\">Most banks keep a post-dated cheque from the borrower so that if any installment is missed then the cheque can be used. However, if you have not missed any of the installments and paid all the due on time, then you can ask your lender to return the unused post-dated cheque.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>FAQs<\/b><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Q1: When should I close my home loan?<\/b><\/p>\n<p><b>Ans: <\/b><span style=\"font-weight: 400;\">There are various reasons why it is a wise decision to close the home loan like low interest will be levied on you, your cash can be utilized for some other investment, if you pay your dues early then your chance of getting other loans will increase, your credit usage will reduce, and you can enjoy your own property early.\u00a0 \u00a0 \u00a0 <\/span><b>\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Q2: Is it good to pay for the home loan early?<\/b><\/p>\n<p><b>Ans:<\/b><span style=\"font-weight: 400;\"> Yes, it is always better to pay all the installments on time so that you can save a lot of money over the loan duration.\u00a0\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Q3: What documents should I collect from the bank after I have paid all my home loan dues?<\/b><\/p>\n<p><b>Ans:<\/b><span style=\"font-weight: 400;\"> After paying all the dues of the home loan, I should collect the original documents from the bank like the Sale Deed, Possession Letter, Title Deed, Payment Receipts, Power of Attorney, and Loan Agreement Papers.\u00a0 \u00a0 <\/span><b>\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Q4: Which certificate is required to be collected from the registrar\u2019s office during the home loan closure process?<\/b><\/p>\n<p><b>Ans:<\/b><span style=\"font-weight: 400;\"> The Non-Encumbrance certificate should be collected from the registrar\u2019s office during the home loan closure process.\u00a0\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>When you are at the end of your home loan EMIs, you must check for all the aspects related to home loan closure.\u00a0 This aspect includes marking off the checklist for home loan closure which will ensure that it is successful. It is to be noted that the home loan closure will be complete only [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":18039,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[495],"class_list":["post-5294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-loan","tag-checklist-for-home-loan-closure"],"_links":{"self":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/5294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/comments?post=5294"}],"version-history":[{"count":7,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/5294\/revisions"}],"predecessor-version":[{"id":18740,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/5294\/revisions\/18740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media\/18039"}],"wp:attachment":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media?parent=5294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/categories?post=5294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/tags?post=5294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}