How to Make The Most of A Home Loan Balance Transfer
Have you applied for a balance transfer? If so, are you confused about the precautions you need to take? It is important for you to know what lies ahead before going ahead with a balance transfer. Once you have submitted the documents required for home loan balance transfer and calculated your EMIs via the balance transfer calculator, it’s time to know the next steps.
Tips to make a home loan balance transfer a smooth process:
- Scrutinize the Market:
This involves the task of searching the market for various deals by different lenders. While some lenders have low interest rates, others offer more incentives like no charge prepayment options and top up loans. Select the best deal that works in your favour.
- Understand the eligibility criteria:
The eligibility criteria are guidelines every borrower has to follow in order to have their application approved. As a part of the eligibility criteria you need to submit certain documents. Hence, view your lenders eligibility criteria carefully and understand what is needed. So read up and calculate your eligibility in advance before proceeding with a balance transfer.
- Collect and collate all your documents:
After you have selected an appropriate lender and viewed the eligibility criteria, collect and organise all the documents needed for submission. These documents are generally your previous loan sanctioning letters, bank statements and even existing loan agreement. For some of the documents required you may need to contact your existing lender, so keep this in mind.
- Wait for verification and approval from the new lender:
Once you have applied and submitted all the needed documents, the lender is sure to verify all your documents. In certain cases, a lender could also perform a physical inspection of your home property. Once this is done, the lender would move to approving your transfer. This could take a few days, so be patient and wait until approval.
- Gain approval from your old lender:
Once your new lender has approved your application and verified all the important documents, it is important for you to gain approval for the balance transfer from your old lender. This could involve submitting an application form to the old lender, or even asking for a consent letter or NOC.
- Submit the consent letter and arrive on a loan agreement:
After you have received the relevant documents like the consent letter or NOC from your old lender, submit it to your new lender, along with the outstanding amount of your loan. Once this is done, sign the loan agreement after which your new lender would provide you with a loan sanctioning letter.
- Verify balance payment:
Once you are done with signing the agreement, you have to verify the balance payment with your old lender. This shows evidence that the balance has been paid and received.
- Transfer property documents:
Observe and monitor and make sure that your property documents are transferred to the new lender after the payment. These documents entail the details of your property ownership, its monetary value and even the receipts that are evidence of you having purchased the property and paid for it. It is important for you to endure that are transferred carefully.
These steps can guarantee you success at performing the balance transfer smoothly. Apply for a home loan balance transfer and gain from numerous benefits. Bajaj Finserv offers you low interest rates and various other facilities like a top up loan and a flexible repayment tenor.