Step 1: Check Your Financial Readiness
Before anything else, assess where you stand:
- CIBIL score: Get your free report from <cibil.com>. You need 750+ for best rates
- Savings for down payment: You need 10–25% of property value (banks fund 75–90%)
- Stable income: At least 2 years of employment history or 3 years self-employment
- Existing EMIs: Calculate your current obligations and how much room remains in your budget
Step 2: Get Pre-Qualified
Before house hunting, get a pre-qualification from Taksh Fin. We assess your eligibility across 50+ lenders and give you a realistic budget. This prevents the heartbreak of falling in love with a property you can't finance.
Step 3: Set Your Budget
- Stamp duty and registration: 4–8% (varies by state)
- Interior work, movers: 2–3%
- Emergency fund: Don't deplete savings entirely
Step 4: Property Search and Due Diligence
- Verify RERA registration for under-construction projects
- Check encumbrance certificate (EC) — confirms no existing loans on the property
- Verify title chain — ownership history going back at least 30 years
- Confirm building plan approvals from local authorities
Step 5: Finalise and Apply for the Loan
Once property is finalised: 1. Submit application with income and identity documents 2. Bank orders property valuation and legal report 3. Sanction letter issued (typically 7–15 days) 4. Sign loan agreement 5. Execute sale deed, pay stamp duty and registration 6. Bank releases funds to seller
Step 6: After Disbursement
- Set up auto-pay for EMI — never miss a payment
- File for PMAY subsidy if eligible (lender does this)
- Keep all loan and property documents safely — you'll need originals when selling
- Claim tax deductions in your next ITR filing
Common First-Time Buyer Mistakes
- Not comparing rates across lenders — a 0.5% difference on ₹50L over 20 years = ₹5+ lakh
- Stretching budget to the maximum — leave room for job changes or emergencies
- Skipping legal due diligence — always get an independent lawyer to verify documents
- Ignoring stamp duty in budget planning