Wednesday, 31 March 2021

Important Documents Required for Home Loan Refinance

Many a time, individuals can suffer from sudden financial crises, making it difficult for them to sustain their current home loan repayment. Borrowers can also find themselves stuck with a high interest housing loan while current market rates have lowered. 

Under such circumstances, they can transfer their outstanding amount to a lender offering lower interest rates along with better offers like a top up loan. However, there are certain mandatory documents that you must provide to ensure successful home loan refinancing.

KYC documents

These include documents like Aadhaar card, PAN card, driving license, passport, or voter ID, which serve as identity and address proof.

Loan agreement

Borrowers need to collect the sanction letter or loan agreement of their existing home loan from their current lender.

Home loan statements

It is mandatory for individuals to provide their new lender with details of existing EMI repayments and the total outstanding amount. These details are included in home loan statements that individuals should collect from their current lending institution. 

Consent letter

When opting for a home loan balance transfer, write an application to your loan provider informing them of the same and requesting a consent letter.

NOC

Besides a consent letter, your existing lender must also provide a No-Objection Certificate, stating that they have no disagreement in shifting the funds to another creditor.

Foreclosure letter

This document indicates that your home loan is foreclosed, and you have no due amount with the present financial institution.

Post-dated cheques

Make sure to collect all such pending cheques from your current loan provider before refinancing.

Plus, do not forget to retrieve all property documents from the first lender. Submit these, along with required financial documents to your new financier to avail benefits like a top up loan. Such additional funds can help you cater to increased financial obligations in case of a crisis.


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