Consider These Things if You’re Planning to Buy Your First Home

Buying a house is usually a one-time investment. It is one of the most vital decisions in your life. Hence, a lot of thought should go into the decision making process. Various factors determine the decision to buy your first home.

Are you planning to buy your first home? Keep these things in mind when doing so. It will help you seal the right deal.

• Identify the type of property you wish to buy

Decide in advance whether you like to opt for a flat or an individual bungalow. It entails following different procedures. The principal difference is that you own the land as well as the building when you purchase an independent home. On the other hand, you share ownership of the ground with the owners of the other flats. You get an undivided share in the common areas like a passageway, terrace, and so forth.

• Check out the price of the property

When you set out to purchase a house for the first time, you should have a budget in mind. It enables you to shortlist the house. The first thing you should do is to compare the price of the property in question with similar ones in the vicinity. It will help you to verify the genuineness of the price offered to you. Some of the best ways to do so are to look at portal listings, talk to brokers in the area, and browse the internet.

• Understand the concept of carpet area, built-up area, and super built-up area

There are different ways of describing the area of the flat you wish to buy. Usually, the sellers list out the super built-up area of the flat. This area includes the area of flat, the thickness of its walls, and the common areas like staircases, elevator space, and so on. The ‘built-up area’ concept excludes the common areas but includes the thickness of the walls. The carpet area does not include the walls. The standard thumb rule is that the carpet area is 30% less than the super built-up area of the flat.

• Check out the land records

Check the quality of the soil and the topography of the land on which they have built your flat/house. Verify whether the existing owner has cleared all the dues towards the house. Verify the title deed of the property and check it in detail. Engage a lawyer to conduct a legal check to ascertain the chain of ownership. Check out if there are any encumbrances on the property. Ensure that there is a proper plan available. The construction permit is an essential document. Verify whether the amenities like water supply, sewage, and power supply are in place.

• Ascertain the possession status

Builders have a habit of delaying the possession of the house under one pretext or the other. It is better to clarify with the builder beforehand about the timeline for possession of the property. A six-month grace period is acceptable.

• Check out the banks for financing the house

Banks have various Home Loan products depending on the type of property you wish to buy. Ascertain your Home Loan eligibility. The banks need time for completing the formalities like valuation of property, doing legal scrutiny, and assessing your Home Loan eligibility. Therefore, apply for a Home Loan well in advance.

• Executing the sale agreement

The usual procedure is that you make a token payment to the builder against which they offer you the allotment letter. You can apply for the Home Loan with this letter. On approval of the loan, there will be the execution of a tripartite agreement involving the builder, the bank, and the purchaser. Go through the contract carefully and understand the terms and conditions.

• Hidden charges

Look out for the additional expenses in connection with the purchase of your house. It includes stamp duty, registration charges, bank processing fees, mortgage stamp duty, and mortgage registration charges. Remember, these are additional expenses for which the banks do not give loans.

• Know your Income Tax benefits

The Government of India provides a lot of incentives to people to take Home Loans for purchasing homes. These benefits are in the form of income tax concessions and rebates. Keep these factors in mind when you Apply for a Home Loan Online.

Now that you know the things to consider when buying your first house, you should not waste any time in acquiring one. Banks are ready to approve Housing Loans to eligible borrowers at concessional rates of interest. Note these points before you go ahead and seal the deal.

Also Read: 7 Important Questions to Ask Your Home Loan Provider

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