Essential Tips for First-Time Home Buyers in Today’s Market

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Essential Tips for First-Time Home Buyers in Today’s Market

When are you planning to buy your own home? Because it’s always an impressive life goal. Yet, your decision should be clear without any confusion. For a crucial life decision like this, we have come up with some solid and interesting tips for our readers. You can use this blog as a simple but well-rounded guide. We have included some significant tips for first-time home buyers. 

Start with Smart Market Research

• Set a realistic Budget: It should not exceed your income and EMI paying capacity. 
• Shortlist locations: Choose prime locations with transportation, schools, shopping spots, and hospitals. 
• Think about future value: Don’t just look at the current price. Also, consider the return you could get from this property later.
• Check different property types: New couple? 1 BHK works. Growing family? Go for 2 BHK. Living with parents? 3 BHK gives space. Pick what fits your life!
• Research the builder’s credibility: Visit their old projects, read customer reviews, and stalk their social media.
• Ask the builder for their RERA number. Verify it on the official RERA website. It only takes 2 minutes and saves years of trouble.
• Check for upcoming infrastructure like the metro.
• Visit the site to assess construction quality.
• Check the loan eligibility.
• Consult with real estate advisors.
• Compare at least 2–3 properties before finalising your choice.

Documents Every First-Time Buyer Must Verify

• Always opt for RERA-approved builders, such as ASN Housing.
• Verify legal documents.
• Check the builder’s website.
• Also, check their social media handles.
• Their Testimonials. 
• Fix your budget.
• Apply for loans if needed. 
• Discuss tax and tax deductions with experts.

We listed out the essential documents required to buy a property in India. Also, we shared how to verify these documents officially. It has all the details with clean steps. Do not neglect any steps. It’ll be helpful to make a decision and make it the best.

Do You Really Need a Home Loan?

The most important question! Need a loan? Choose wisely: Not all loans are the same. Always select or pick which one works better for you. Don’t go for a Personal loan even if you have a credit limit. Personal loans come with high interest rates. For your better understanding, we have a few crisp questions. 

• How long will you stay? Are you planning to live there for years, or is this a short-term move?
• Do you have an emergency fund?
• How will you survive the first 3 months?
• Are you going to break your lifetime savings?
• Do you have a steady monthly income?
• Will your life partner take the financial responsibility?

If everything is okay, you can go ahead and buy your first home.

Mortgage Pre-Approval: Why It’s a Game Changer

How mortgages work: A mortgage is just a loan for your home. Banks or lenders check your property’s worth and your credit history. They have certain terms and conditions. You should qualify these terms and conditions. After that, they process further.

Don't confuse these two things.

• Pre-qualification loan approval
• Pre-approval loan

Pre-Qualification

• It’s a basic estimate of how much you can borrow.
• It’s an informal evaluation.
• Based on your income and the basic details.

Pre-Approval

• It’s an official confirmation from your lender.
• Income proof, bank statements, and credit reports will be verified for accuracy.
• You can make a buying decision by trusting pre-approval.
•  An official letter will be given. 

Benefits of Pre-approval

• Know your loan amount: Before committing, make sure you know exactly how much you’re getting.
• Your loan is already approved, so you can bargain confidently.
• Fast buying and registration process.

Your Credit Score Can Make or Break Your Loan

Watch your credit score. First-time buyers should keep an eye on their credit score. It matters a lot! Do not take any other loans during this time. It might affect your loan eligibility. Credit score is key; a good credit score helps you get better loan deals. Check yours here. Note the following points.

• Your credit score shows your financial characteristics.
• The loan decision is fully dependent on the Credit report.
• Good credit score = Lower interest.
• Do your repayment on time.
• Use credit with discipline.
• Pay EMIs on time: Make the payments on time. It’ll boost your credit score.

Many think there will be a down payment only. You should have a plan for loan closing charges. We are breaking down the common things that contribute to closing the charge of a loan. Remember, this money isn’t free; you’ll need to pay it back.

Loan Closing Charges – Don’t Miss These Hidden Costs

• Processing Fee: Banks charge 0.25% to 1% of your loan amount as a processing fee. Legal & Technical Charges: ₹5,000–₹15,000
• Stamp Duty (Loan Agreement): ₹500–₹5,000 (state-wise)
• MOD Charges: 0.1% to 0.3% of the loan amount
• CERSAI Charges: ₹50–₹500
• Loan Insurance (Optional): ₹5,000–₹25,000+

Understanding the Types of Home Loans in India

1. Regular Home Purchase Loan

• From all banks and housing finance companies.
• Great for any property: Whether it’s a flat, villa, or resale home, this works for you.

Usually 75–90% of your home’s price. The more you pay upfront, the less you borrow!

2. PMAY – Pradhan Mantri Awas Yojana (Urban)

• Government offers subsidy schemes for new buyers.
• Offers interest subsidy on loans up to ₹6 lakh (EWS/LIG) and ₹9–12 lakh (MIG-I & II).
• You shouldn’t already own a proper house in India to qualify.
• Applicable for women, senior citizens, the differently abled, etc.

3. Affordable Housing Solutions

• Banks and NBFCs for low- to middle-income groups.
• Lower processing fees, longer tenures, 
• Special interest rates.
• Comes with PMAY for extra benefits.

Negotiation Tricks for First-Time Buyers

1. Do Your Research on local real estate prices

Understand the square foot prices of your property and the market price. 

2. Get Pre-Approved for a Loan

A pre-approval letter shows sellers you’re serious. Plus, you’ll know your exact budget before house hunting!

3. Avoid Excessive Emotion

Even if you adore the house, maintain your neutrality. If sellers perceive desperation, they may raise the price.

4. Make a Reasonable Offer First

Don't be too modest, but give yourself leeway to bargain. Make your offer based on the condition of the property and comparable sales (comps).

5. Make Use of Inspection Reports as Support

If you find out about some problems during the inspection, ask for repairs or a price reduction. If the seller says no, you can walk away with no pressure.

6. Prepare to Leave

Decide on a budget and follow it. If the budget is higher, you can look for other properties. 

Budgeting Tips That Actually Work 

30-40 % is the main concept of this rule. The rule is super simple; let me break it down for you. For example, Anandh lives in Chromepet and decided to buy an apartment from ASN Housing. Anandh belongs to a middle-class family. He has to take a bank loan. His salary is 50,000 per month after tax deductions.

Top Mistakes to Avoid as a First-Time Home Buyer

• Buying with Emotion, Not Logic: Buying with emotions, not logic: making emotional decisions is not a good idea. Before making a final decision, you can discuss with your life partner, friends, and well-wishers.
• Skipping Legal Paperwork: No one wants a home with legal drama. Verify all papers before signing.
• Blindly Trusting Builder Documents: Builders may have clear documentation. It’s not enough. Do your research. 
• Ignoring Hidden Costs: Discuss registration charges, GST, and maintenance. Remember, hidden costs are not always hidden. It’s all about clarity in payments. 
• Skipping Home Inspection (Resale): If the property is in another hand, inspection is important. You can work with an engineer and inspect your property. Check walls, fixtures, plumbing, and electrical fittings.
• Not Researching the Area or Builder: Chat with people living nearby. They’ll tell you the truth about water supply, noise, and safety.
• Neglecting Resale Potential: Resale value is a considerable factor. In case of emergency resale, you should get a reasonable amount. Prime locations offer good resale value. 
• Rushing the Process: Rush is dangerous. Do not speed up; take time to decide well. After all, it’s your home. You are the deciding authority. 

Why Legal Help is Your Safety Net

These general mistakes can cost you a million or crores based on your property value.

1. Avoid Costly Mistakes

Often, buyers are uncertain about what to see. You can avoid hidden dangers from being a lawyer or real estate specialist, who can identify warning signs in real estate documents.

2. Confirm Documents and Legal Ownership

Does the seller actually own the property? Do you have approvals? Is there no conflict on the land? A specialist will confirm building approvals, ECs, title deeds, and other documents.

3. Recognise the Fine Print Legal terminology

Such as UDS, carpet area, or loan stipulations, is abundant in agreements. What it all implies and what your rights are will be explained by your attorney or specialist.

4. Keep security and compliance

They guarantee that your procurement is in line with local regulatory and RERA standards and ensure that your house is safe and ready for the future.

5. Safety is an emotional support

When you have a reliable advisor at your side, you can be sure that you're investing wisely and won't be caught off guard.

Step-by-Step Home Buying Process (From Budgeting to Moving In)

• Plan Budget & Get Pre-Approved
• Search & Shortlist Properties
• Choose the best location.
• Verify Legal Documents Thoroughly
• Negotiate & Sign Agreement
• Apply & Get Home Loan Sanctioned
• Register for the Sale & Make a Payment
• Take Possession & Update Utilities

You Deserve a Smooth First Home Purchase

So, throughout this blog, we have discussed the importance of owning a home. As a tip for first-time home buyers, this blog has market research methods, home loans, pre-approval, and credit scores.

In addition to that, we have solid tips for emotional triggers. The best part is that the 30-40 % financial management rule is included. 

In case you are looking for a perfect home without too much struggle, ASN Housing is the perfect choice. Because it’s a RERA-approved property, you will get a home loan easily. ASN always chooses the best location that offers a smooth lifestyle. Feel free to reach out to ASN Housing.

FAQs: First-Time Home Buyer Questions Answered

What should you know before buying your first home?

• Consider your budget
• Research the location
• Verify legal documents
• Check all the hidden hosts

How do you plan to buy a house for the first time?

• Plan finances
• Get loan pre-approval
• Shortlist properties
• Verify documents
• Finalize the deal
• Register & move in

What is the ideal down payment for a first home in India?

Usually, 20% of the property’s price. But if you can pay more upfront, your EMIs will be lighter, and banks will be more likely to approve your loan.

How can I check a builder’s credibility?

• Visit their buildings - Go see their finished projects yourself. Do they look well-made? Talk to people living there if you can.
• Read what others say - Look for reviews online. Are people happy with their homes?
• Check their social media - See how they talk to customers. Do they answer questions? Are they helpful?

What documents should I verify as a first-time home buyer?

You must check these 5 documents without fail.

• Sale Deed/Title Deed – This is the official paper that shows who really owns the property
• Encumbrance Certificate (EC) – Ensures property is free from legal dues or loans
• Patta/Chitta (Tamil Nadu) – Verifies land ownership and classification
• Parent Documents – Shows history of past ownership (preferably 30 years)
• Approved Building Plan – Confirms legal construction as per local authority.