Buying a first home in India is not just an emotional decision. It is a cash-flow decision, a legal decision, a tax decision and a long-term location bet. The mistake most buyers make is starting with property visits before they know their real budget.
1. Calculate your real budget
Start with take-home salary, not CTC. Subtract existing EMIs and fixed obligations. Then calculate a comfortable EMI range. Once you know the EMI, convert it into loan eligibility using tenure and interest rate. Add your available down payment after keeping at least six months of expenses untouched.
2. Understand the upfront cash
The down payment is only one part of the amount you need before moving in. You also need stamp duty, registration charges, TDS if the property is above the threshold, processing fees, legal verification, interiors and moving costs.
3. Compare lenders properly
Do not choose a lender only by the advertised interest rate. Compare processing fee, part-payment rules, foreclosure rules, insurance bundling, turnaround time and how quickly disbursement happens after registration.
4. Verify the project before negotiation
For under-construction properties, check the RERA registration number, sanctioned plan, carpet area, delivery timeline and complaint history. For resale homes, verify title chain, occupancy certificate, society dues, previous loan closure and mutation records.
5. Register with full clarity
Registration day requires signed sale agreement, identity proofs, PAN, payment receipts and the correct stamp duty challan. Your registered sale deed is the legal proof of ownership. Keep scanned copies of every document in cloud storage.
Tax benefits to remember
Home loan interest may qualify under Section 24(b), principal repayment under Section 80C and eligible affordable homes may get additional interest benefits. Tax laws change, so confirm with your CA before filing.
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