Transfer Your Home Loan Balance In 5 Easy Steps

When it comes to home loans, you will always have many questions and doubts too. “Am I choosing the right housing finance company?””Is this decision going to cost me?” Well, yes. Some answers are obvious whilethe others may require a detailed look at the costs, savings and benefits. So, a smart strategy is to keep an open mind about loan transfers. But do not rush into it without taking a holistic look at the pros and cons of the agreement.

Keep the right reasons in mind for a home loan transfer:

With several appealing ads, borrowers keep looking for smart housing finance choices. Yet, the fact is that even the most perfect home loan transfer is going to cost you. Do you need a top up loan for home renovation? Ask. Do you want to prepay the house loan? Ask. In most cases, the lenders are very flexible and want to retain you as a paying customer. However, if you are not getting the right response or receiving profitably lowest interest rates, then proceed with the rest of the steps.

Research the primary consideration:

Before you switch to a new bank or housing finance company in India, evaluate their housing loan terms and conditions. Do the due research to avoid any hidden fees or processing charges. Do a cost-benefit analysis. In other words, deduct the cost of transferring home loan from the applicable savings in your home loan repayment. That is the most vital part of this process.

Get a NOC from your lender and apply:

You need a perfectly clean repayment record to expect a NOC from your existing lender. ThoughNOC is just one of the documents, you cannot transfer the house loan to a new lender without it. Otherwise, you will need similar documents as you needed while applying for it the first time. However, the trick is getting a NOC as quickly as possible.

Get the credit approval from a new lender:

You will need to meet the eligibility criteria of your new bank or housing finance company. The basic strategy is that you must find out the required range of credit score, financial standing, income and assets before you step into this process. In most cases, it is easier than the first time.

Complete the home loan process:

This seems a bit like a drag. However, if you have repaid extra funds to your lender, you will understand the importance of finding the home loan terms and conditions that you are comfortable with. You must understand that when you opt for a home loan balance transfer , you are risking your property a lot more than the first home loan because the LTV ratio is different as compared to the first time. Hence, a cautious approach to the agreement is far more vital.