Closing a homeloan — Ashish Gupta

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;}     You always have the option of closing a home loan .This is done at the end of the tenure, or before the specified tenure if youhave an alternate source of funds. One may have excess funds or may be sellingoff the property. Either way, the closure of the loan account is almost asimportant as opening it.     While initially submitting your documents to the bank,it is advisable to get an acknowledgement of the number of documents that youhave submitted. This will help you prove your point just in case you find thatcertain documents are missing at the time of the loan closure. In case therehas been a change of address, you should get it updated in the bank’s records. Process      If you have paid off the last EMI and all theoutstanding payments have been made, you need to write a letter to the bank statingthe facts and asking for the return of the original documents that yousubmitted at the time of taking the loan. If you require other papers includinginvoice copies, you could include these in your request to the bank.     The bank generally responds to such requests in aboutseven working days. The bank returns your original documents and issues aclosure letter or a no-objection certificate indicating that there is nooutstanding amount to be paid. It will also issue a no-objection certificate thatstates the termination of the hypothecation agreement that you had entered intowith the bank. It is a confirmation that the bank no longer has an interest inthe property .     In the case of a home loan where the mortgage isregistered, the no-objection certificate needs to be taken to the Registrar ofProperties to get the lien removed. Both the borrower as well as arepresentative of the bank needs to do this at the same time. But if themortgage is not registered, the bank simply returns the title deeds. Prepayment      In the case of prepayment of a loan, you need tostart the entire process with a request to find out the outstanding amount,followed by one stating your inclination to pay the entire amount by aparticular date. Also, you need to find out the interest amount you need topay, particularly if you decide to close the loan in the middle of your monthlyrepayment cycle or after the fixed date on which the bank calculates interest.     Check the interest calculation in addition to theoutstanding amount to ensure there is no confusion. Also, if you have givenpost-dated cheques and decide to prepay the loan, you need to let the bank knowin advance, so that they can return the post-dated cheques with the otherdocuments. In case the postdated cheques have already been sent for clearanceby the bank, they will ensure they are eventually returned to you. It is bestto let the bank know 15 days before your next payment date. Prepayment fee      Most banks do not levy a prepayment fee if thefunds have come from the borrower’s own resources such as from the sale of aproperty . However, to avail of this benefit,you need to be able to show proof of the source of the income.   Courtesy:Times Property 27 th Feb 2010 For more information regarding apartment in gurgaon, bedroomapartments, buy property in india, commercial complex in india, commercial realestate, commercial space in gurgaon, dealers, flats for sale, indian realestate investment, investment options in real estate, luxurious flats, malls,office space, office space in gurgaon, online real estate, penthouses gurgaon,plots, property consultants, property in gurgaon, property india, propertyinvestment, real estate company, real estate developer, real estate gurgaon,real estate in india, real estate investment strategies, real estate market,real estate news, real estate portals, realtors, realty, residence, residentialreal estate, sell property, shop, villas, Residential Apartment   Visit www.zameen-zaidad.com          www.propertycafeteria.com  

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