Home loans are a boon for those who buy property at an age where prices skyrocket every other day. It has taken the form of an epidemic to reduce rates, that too by a very small margin. Still, it becomes imperative for any homebuyer to get a home loan to save him from the hassle of securing a huge amount or putting all his savings towards buying a home. Buying a property without a home loan has become a dream today.
When a person chooses a financial institution that offers a home loan, they consider various factors, such as the interest rate to be paid, the installment payment tenure and the flexibility of the institution. The health of the bank is also a factor to consider. However, often a person takes a home loan and then finds out that a different institution is offering a better deal in terms of interest rates.
There is a way to change financial institutions based on flexibility and interest rates. If one is looking at a lower interest rate along with other significant benefits, the outstanding amount of the loan amount can be easily transferred to a new institution. In this case, the new institution will pay the loan due amount to your old institution.
That said, there are other parameters that need to be considered while considering a home loan transfer. An eligible person needs to pay a minimum of 12 installments to avail the benefits and should have a good credit score. There is also a minimum loan amount that the lending institution will ask for balance transfer. Then the application for new housing loan can be prepared in the new institution. Many companies also provide the service online.
A person must ensure that the paperwork is in order, such as bank statements, photocopies of identity proof, address proof, photographs and income documents. Other documents that will be required is a letter from the current bank listing the papers they have; The letter mentions the balance on the loan and property documents left for payment.
Next come the foreclosure formalities. The new lending organization accomplishes this. A new agreement has been signed for a new home loan. What a person should consider are the additional costs that need to be borne for the relocation.