Step-by-step guide to buying your first home

Step-by-Step Guide to Buying Your First Home

1. Set Your Budget

Before anything else, you need to know how much you can afford. Calculate your monthly income, expenses, and how much you can save. Don’t forget to include costs like:

Property taxes
Maintenance fees
Home insurance
Utility bills

Pro tip: Use an online home loan eligibility calculator to get an idea of your borrowing power.

2. Save for a Down Payment

In most cases, you’ll need to pay at least 10%–20% of the home’s value upfront as a down payment. Start saving early and explore saving options like:

Fixed deposits
Recurring deposits
Mutual funds (if you can take some risk)

3. Check Your Credit Score

A good credit score can help you get a lower interest rate on your home loan. Check your credit report for errors and pay off outstanding debts. Aim for a score of 750 or above for better loan offers.

4. Get Pre-Approved for a Home Loan

Getting pre-approved shows sellers that you’re a serious buyer. It also gives you a clear idea of your budget. Approach banks or home finance companies and compare:

Interest rates
Processing fees
Loan tenure
Repayment flexibility

5. Choose the Right Location

Location is key when buying a home. Think about:

Distance to your workplace
Availability of public transport
Nearby schools, hospitals, and markets
Future development plans

Take time to visit the area and talk to locals if possible.

6. Shortlist and Visit Properties

Start your search online or through trusted real estate agents. Once you shortlist a few properties, visit them personally. While visiting, check:

Water and electricity supply
Condition of the building
Amenities (parking, lift, security)
Legal documents and property title

7. Make an Offer and Negotiate

Once you’ve found your dream home, make an offer. Don’t hesitate to negotiate—it’s a common part of the process. Consider the market rate, condition of the property, and any repairs needed before deciding the price.

8. Book the Property

Pay the booking amount to reserve the property. Make sure you get a proper receipt and a written agreement mentioning:

Price agreed
Payment terms
Possession date
Any additional charges

9. Legal Due Diligence

This is the most important step. Hire a legal expert to verify:

Ownership title
Encumbrance certificate
Approvals from local authorities
Building plan approval
RERA registration (if applicable)

10. Finalize the Home Loan

Submit the required documents to your bank:

ID and address proof
Salary slips/Income proof
Property documents
Bank statements

The bank will verify details and disburse the loan after signing the agreement.

11. Sign the Sale Agreement

Once everything is verified, sign the sale agreement with the builder or seller. This legal document will include:

Complete property details
Final sale price
Payment schedule
Possession date

Get it registered and pay the applicable stamp duty and registration charges.

12. Get Home Insurance

Home insurance protects your property from natural disasters, theft, and fire. It’s a small investment for peace of mind. Compare policies and choose one with adequate coverage.

13. Take Possession of Your Home

On the possession date, inspect the property thoroughly before accepting the keys. Check:

Fixtures and fittings
Wall cracks, leaks, or damages
Electricity and plumbing systems

After confirming everything is fine, collect the keys, documents, and possession letter.

14. Move In and Celebrate!

Now that everything is complete, it's time to move into your first home! Arrange for movers, set up utilities, and make it your own. Celebrate your new beginning!

Conclusion

Buying your first home can be both thrilling and challenging—but with a step-by-step approach, it becomes manageable and enjoyable. From planning your budget to moving in, each stage matters. This guide is designed to help you make informed decisions and avoid common mistakes. With the right preparation and a little patience, you’ll soon be a proud homeowner.