Step-by-Step Guide to Buying a Home in India

Buying a home is a big decision, especially for first-time buyers. It is not just about choosing a house but also about budgeting, loans, legal paperwork, and registration. If you are planning to buy a home in India, this guide will help you understand the entire process in a simple and easy-to-follow way.

1. Decide Your Budget – How Much Can You Afford?

Before you start looking for a home, the first thing to do is fix your budget. This helps you filter out properties and saves time.

How to Set Your Budget?

Your monthly EMI should not be more than 40 percent of your salary.
You need to pay at least 20 percent of the property price as a down payment.
Apart from the price of the house, keep money aside for stamp duty, registration, interior work, and maintenance fees.

For example, if you earn 80,000 per month:

Your maximum EMI should be around 32,000.
If the loan tenure is 20 years at 8 percent interest, you can afford a loan of 35-40 lakhs.
You will need at least 8-10 lakhs as a down payment.

Make sure your budget is realistic, so you do not face financial stress later.

2. Choosing the Right Location – The Most Important Factor

The location of your home affects your daily life, convenience, and future resale value.

What to Consider While Choosing a Location?

Near your workplace to save time and travel costs.
Good schools and hospitals nearby for a better lifestyle.
Markets, malls, and basic amenities should be easily available.
Connectivity to metro stations, railway stations, or highways.
Future growth potential, as areas with new highways, IT parks, or metro projects will increase in value.

Best Cities for Real Estate Investment in India

Bengaluru, an IT hub with great job opportunities.
Hyderabad, which is affordable with good infrastructure.
Pune, which has good rental demand and peaceful living.
Mumbai, which is expensive but best for long-term appreciation.
Chennai, which is well-developed and growing rapidly.

3. Check Your Home Loan Eligibility – Can You Get a Loan?

Most people in India buy homes with the help of a home loan. Before applying for one, check if you are eligible.

Factors That Affect Your Loan Eligibility

Income, as a higher salary means a bigger loan amount.
Credit Score, which should be above 750 for better interest rates.
Existing Loans and EMIs, as having fewer loans increases approval chances.

Best Banks for Home Loans in India

SBI Home Loan, which has low-interest rates and easy processing.
HDFC Home Loan, which is good for salaried and self-employed people.
ICICI Home Loan, which offers a quick approval process.
Axis Bank Home Loan, which has competitive rates and flexible repayment options.

Most home loans have an interest rate between 8 and 9 percent per annum.

4. Government Housing Schemes – Get Benefits If You Are Eligible

The Indian government offers several schemes to help homebuyers, especially first-time buyers.

Schemes You Should Know About

Pradhan Mantri Awas Yojana, which provides subsidies up to 2.67 lakh on home loans for middle and low-income groups.
Credit Linked Subsidy Scheme, which helps reduce the loan burden.
State Government Housing Schemes, as some states offer additional benefits.

These schemes can save you a lot of money while buying a house.

5. Start Looking for a Home – Where to Search?

Once your budget and loan eligibility are clear, it is time to search for the perfect home.

Where Can You Find Properties?

Online Portals like 99acres, MagicBricks, and Housing.
Real Estate Agents, who help in negotiations and paperwork.
Direct from Builders, where you can get discounts on new properties.
Resale Properties, which can be more affordable than new ones.

New vs. Resale Property – Which One is Better?

Feature	New Property	Resale Property
Price	Higher	Lower
Customization	Yes	Limited
Legal Issues	Less likely	Needs verification
Loan Availability	Easy	Sometimes difficult

If you want a ready-to-move-in house, go for resale properties. If you do not mind waiting, new properties are a good option.

6. Verify Property Documents – Avoid Legal Issues

Before making a payment, ensure the property is legally safe.

Documents to Check

Title Deed, which confirms the seller owns the property.
Encumbrance Certificate, which shows there are no loans or disputes on the property.
RERA Registration, which is mandatory for all new projects.
Sale Agreement, which is a legal contract confirming the sale.
Occupancy Certificate, which shows that the building has government approvals.

If you are not sure, hire a property lawyer to verify these documents.

7. Book the Property and Pay the Token Amount

After selecting the house, you need to book it by paying a token amount, usually between 50,000 and 2 lakhs.

Get a written receipt from the seller or builder.
Try to negotiate the price before finalizing the deal.

8. Apply for a Home Loan – Get Your Funding Approved

Now, it is time to apply for a home loan.

Home Loan Process in India

Submit Documents, including income proof, ID proof, and property documents.
Loan Approval, where the bank verifies your financial eligibility.
Legal Check, where the bank ensures the property has no legal issues.
Loan Disbursement, where the bank transfers the loan amount to the seller.

The entire process takes about two to four weeks.

9. Register the Property – Pay Stamp Duty and Registration Fees

Once the loan is approved, you need to register the property in your name.

Charges You Need to Pay

Stamp Duty, which varies from 3 to 7 percent of the property price depending on the state.
Registration Fee, which is usually 1 percent of the property price.

Stamp Duty Rates in Some States (2025)

Maharashtra – 5 percent
Delhi – 6 percent
Karnataka – 5.6 percent
Tamil Nadu – 7 percent

After registration, the house legally belongs to you.

10. Get Possession and Move In

Once registration is done, you can take official possession of your home.

Things to Do Before Moving In

Check for pending work such as plumbing, electrical issues, or painting.
Set up utilities like electricity, water, gas, and internet.
Complete interior work like the modular kitchen and furniture setup.
Update your address in Aadhaar, banks, and official documents.

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