You may have taken a home loan along with a co-applicant for several reasons; lower rates of interest or higher financing. But now, after a couple of years, you may want to remove the co-applicant from the home loan due to him not having a good credit score or any other reason. This answer will help you if you want to how to remove co applicant from home loan:
Reaching out to your lender about a change in your home loan
Firstly, contact your lender and request a novation. A novation is a statement that states that the loan reimbursement is shifting to just one person instead of two.
Refinancing Options
You can take HLBT (Home Loan Balance Transfer) into consideration. In this, you move the outstanding loan amount to some other lender that provides great offers like a lower interest rate, etc. When you switch the loan, the new lender will pay the previous lender’s loan balance in full. You can then start paying the EMIs to the new lender.
Submitting ‘Quitclaim deed’ and other documents
After that, you will be required to submit various documents afresh including the past 1 year’s bank statement, salary documents, tax returns, and more to prove your eligibility. The lends may also ask you to sign a ‘quitclaim deed’ which ensures that the other person that was previously at the loan forgoes all the property rights.
I hope now you know how to remove co applicant name from home loan.
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How to remove co applicant from home loan?
Ramnath K
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3 Year
2021-09-08T16:53:22+00:00 2023-09-21T15:30:51+00:00Comment
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