How to Remove Co-Applicant from Home Loan (2023)

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How to Remove Co-Applicant from Home Loan:-

If you have a Home Loan with a co-applicant, you may want to change the loan arrangement for various reasons. For example, your co-applicant may not have the same financial capability anymore or you may want to have sole ownership of the loan. In such cases, you can change or remove your co-applicant from your Home Loan agreement. To learn more about co-applicants and how to modify your existing How to Remove Co-Applicant from Home Loan, keep reading.


Contact Your Lender About Changing Your Home Loan and Requesting Novation:-

How to Remove Co-Applicant from Home Loan:- To remove a co-applicant from your Home Loan, you should contact your lender and request a novation. A novation transfers the responsibility of repaying the loan to a single individual instead of two. However, it’s important to note that not all lenders allow novation, so it’s a good idea to check their terms before applying for a loan.


Refinance Options When Removing a Name from a Home Loan:-

Home loan balance transfer is an option for borrowers who want to switch to a different bank for a better deal such as a lower interest rate, no prepayment penalties, or other offers. The new lender pays off the loan balance with the previous lender, and the borrower then starts paying EMIs to the new bank.

This is particularly useful for borrowers with long repayment tenures like home loans as it can result in significant savings. The amount saved depends on factors like the outstanding amount, tenure, interest rate difference, and transfer charges.

At HomeFirst we offer Home Loan transfers for an amount of up to ₹ 50 lacs. Kindly fill out this form correctly and then its representative will give you a phone call for Easy Home Loan Transfer.


Documents to Consider When Leaving a Home Loan, Including the Quitclaim Deed:- 

Assuming your lender has agreed to remove your co-applicant from the home loan, you can now proceed to file a quitclaim deed. This legal document transfers ownership of the property entirely to you, effectively removing the other person’s name from the mortgage deed. You can obtain the necessary form online or from a lawyer, and after signing it in front of your lender, they will notarize it and file it with the county clerk. Once this is done, you will have full ownership of the property.


Proving your eligibility:-

When checking your eligibility for a home loan, it’s important to determine if you can take on the loan by yourself if your co-applicant cannot. You may need to provide additional documents, such as income slips and bank statements, to prove that you can handle the loan payments independently. If you do decide to add a new co-applicant, make sure to include them in the loan documentation. Keep in mind that not all loans are created equal, so it’s crucial to select the type of loan that best suits your specific financial needs if you require funds.

HomeFirst Finance Company offers a diverse range of products to cater to the individual needs and circumstances of our customers.


People also ask:-

  1. Can a co-applicant be removed from home loan?
    Ask your lender for a novation to delete the name of the co-applicant.
  2. How do I remove a co-borrower from a loan?
    Pay off the loan in full or refinance by obtaining a new loan in your name.

Conclusion:- 

How to Remove Co-Applicant from Home Loan can be done through a novation process, but it is important to check with your lender beforehand. If the lender permits it, a quitclaim deed can be filed to transfer the home entirely to the borrower. To qualify for a loan without a co-applicant, the borrower may need to provide additional documents to prove their eligibility. Home First Finance Company offers a variety of loan products to suit different needs.

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