If you are reading this, then you have already made up your mind to avail of the Home Loan Balance Transfer option. That’s great!
But before you take the leap of faith, let us forewarn you that there is more than what meets the eye. As a borrower, while you apply for a balance transfer, you may face some commonly faced hurdles. Let us talk about them in detail and the ways to overcome them.
Don’t miss our pro-tips and you can thank us later!
Furnishing an Extensive List of Documents Documentation is an integral part of the lending process and applying for a Home Loan Balance Transfer is no different!
In fact, a Home Loan Balance Transfer is as good as applying for a new loan and your new lender will proceed with your application only after receiving all the documents. In the application process, along with the loan application, you need to submit your identity and address proof, income proof, property-related documents, foreclosure letter, no due certificate, etc.
However, please note that while documents are extremely important, the lender will also consider your age, and income, among other things, before accepting your application.
Objections Raised by Current Lender
Customers are of paramount importance to lenders, and there may be chances where your current lender may leave no stone unturned to retain you. To avoid conflict, you may talk to your lender beforehand about the transfer. It is also advisable to have your dues cleared by your new lender in time to obtain your No Due Certificate at the earliest
Levying of New Charges
As said, a Home Loan Balance transfer is akin to a new Home Loan application. You need to pay the processing fee and various other charges to your new lender. These could bring down your overall savings.
Before signing on the dotted lines, clearly understand the charges you need to pay to your new lender. A vital aspect of a Home Loan balance transfer is to do a cost-benefit analysis and find out whether you are making substantial savings.
We’ve said this before – to err is human, but to take informed decisions pertaining to personal finances, divine! Thus, due diligence coupled with a holistic understanding of the Home Loan balance transfer process will help you identify the hurdles and overcome them with ease.
Disclaimer: The names used in this article are fictitious and are used for representational purposes only.
The contents of this article is for information purpose only. For more details, please refer to the product or service document and/or connect with our customer representative prior to making any financial decision. The information is subject to update, completion, revision and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its affiliates to any requirements. Godrej Capital or its affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.