Owning a home is a cherished dream that we all cherish. A home is a great investment that gives us a sense of financial security and a permanent roof over our heads. However, buying a home in today’s financial climate is not easy.
Most people rely on home loans to make this dream come true. The loan must be repaid in monthly installments within the term of your choice. Once the home loan is paid off, you will need to ask your lender to provide the home loan document to the NOC. This is what it is and why it is important.
NOC (short for Certificate of No Objection) is a legal document that your lender will issue to you after you have paid your mortgage in full. You must repay the principal amount borrowed from your lender, as well as the interest charged, in order to receive this certificate. There should be no late or pending payments on your part. The NOC of the mortgage loan document contains important information, including your name and address of the loaned property that the lender no longer legally owns.
After payment of the loan owed, the CNO will determine you as the legal owner of the property. It also includes the loan account number and the date the loan was closed, that is, H. The date of the last EMI payment. With this document, the lender loses his legal right or title to the property and transfers the property rights in his name. As such, the asset is used as collateral for the lender and you can sell it if you wish.
The importance of the NOC home loan is best explained by the following reasons:
When applying for a home loan, you will need to present several important financial documents to your lender. These documents remain in the care of your lender for the life of the loan. You won’t be able to get these important documents until you’ve paid the mortgage in full.
Sometimes you may need to get an additional loan to pay off the home loan and the lender may request additional collateral such as gold, life insurance, etc. The Home Loan NOC document will help you recover any collateral paid on the various home loans.
2. Help improve your credit score
Regardless of the type of loan you are applying for, you must provide your credit score to be eligible for the loan.
Your creditworthiness will suffer when you have an outstanding loan, especially if it is in EMI default. Once the loan is repaid, you can update your CIBIL file to indicate that you have no outstanding loans. If you ignore asking the lender for the NOC on the mortgage document, your CIBIL score will not update, making it difficult for you to be eligible for another loan if necessary.
3. Lets potential lenders better understand your financial health
You may need to apply for other loans in the future, such as B. A student loan to promote your children’s higher education. If the value of the student loan is high, the lender may ask you to provide collateral.
The house you own can be used as security. In the event that you do not have the NOC for the mortgage loan document and declare that you are the legal owner of your home, you may be denied the student loan as the lender may think you still have an outstanding loan. great value to refund. It makes you an unworthy candidate and even affects your creditworthiness if the loan is rejected.