After successfully closing a mortgage loan, homeowners experience a great sense of relief and satisfaction. But they will still need to do some banking. Here is a complete guide on the essential documents they need to gather and the steps to take after closing a mortgage loan.
Original ownership documents:
After the loan closing, it is essential to collect all the original documents that were submitted to the lender at the time of obtaining the loan.
Non-payment of dues certificate (NDC):
A “No Debt” certificate is an official document that confirms that you have no outstanding debts with your lender. Obtaining this certificate is important because it serves as tangible evidence that your loan has been paid off in full. This document may be needed in several situations, such as applying for another loan or selling your property. Having it on hand prevents potential complications down the road.
Removal of lien:
When you obtain a mortgage, a lien is placed on the property as security for the loan. Once the loan is paid off, it is essential to ensure that this lien is formally removed. Gathering the necessary documentation confirming the removal of the lien is crucial to keeping the property unencumbered. Without this, you may find yourself having difficulty selling the property or obtaining financing in the future.
Updated certificate of non-lienability:
The no-lien certificate (NEC) is a vital legal document that records all financial transactions related to the property. After paying off the loan, make sure the NEC reflects the closing of the loan, indicating that there are no outstanding claims against the property.
Loan Repayment Statements:
Gather all bank statements related to loan payments. These statements serve as proof of payment and can be crucial in case of any dispute related to loan closing.
Post-dated checks:
If you provided post-dated checks at the time of taking out the loan, be sure to retrieve them from the bank once the loan has been paid in full.
“Gathering all documents after closing on your home loan is not just a formality; it is a critical step to protect your investment and ensure your peace of mind. By obtaining the original documents, a No Dues certificate, lien release confirmations, updated no liens certificates, and checking your credit records, you can consolidate your ownership and protect your financial future. Taking these steps will empower you as a homeowner and allow you to fully enjoy the benefits of your hard-earned achievement,” said Siddartha Karnani, Partner at King Stubb & Kasiva, Attorneys at Law and Advocates.
Your credit records should accurately reflect that you have paid off your mortgage loan. Ensuring your credit report is up to date is important for maintaining a good credit rating, which is essential for future loan opportunities. Gathering documentation confirming your loan closing helps protect your credit reputation and allows you to take advantage of better financial terms in the future.
First published: August 13, 2024 | 17:38 IS
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