Key things you should know before buying your first house

Discover essential tips and insights every first-time homebuyer should know before purchasing a house. Learn how to make smart, informed decisions in your home buying journey.

bayshoreroad

Jun 21, 2025 - 15:22

Buying your first home is a big milestone—both emotionally and financially. It’s a dream come true for many, but it can quickly become overwhelming without proper guidance. Whether you’re tired of renting or simply investing in your future, understanding the essential aspects of home buying will save you from costly mistakes.

This guide outlines the key things you should know before buying your first house, to help you step confidently into homeownership.

1. Assess Your Financial Readiness

Before you even start house-hunting, take a long, hard look at your financial situation. Buying a house involves more than just affording the down payment. You’ll also need to account for:

Home loan EMIs
Property taxes
Insurance
Maintenance and utility costs
Legal and registration fees

Start by checking your credit score. A good credit score will help you get better interest rates. Use a home loan eligibility calculator to estimate your borrowing capacity.

2. Know Your Budget and Stick to It

It’s easy to fall in love with homes that are outside your budget. However, overextending yourself financially can create long-term stress. Set a realistic budget based on your income, current debts, and lifestyle needs.

Include buffer money for emergencies or unforeseen expenses. Many financial experts recommend that your home loan EMI should not exceed 40% of your monthly income.

3. Understand Loan Options

Home loans are a vital part of the buying process. It’s important to understand the types of home loans available, interest rates (fixed vs floating), and loan tenure.

Get pre-approved for a loan if possible. It will not only help you understand how much you can afford but also make you a more attractive buyer to sellers.

Compare loan options from different banks and NBFCs. Don’t just focus on interest rates—look at processing fees, foreclosure charges, and other hidden costs.

4. Choose the Right Location

“Location, location, location” isn’t just a cliché—it’s a critical factor in real estate. A good location will ensure better appreciation of your property over time.

Look for areas with:

Good connectivity to roads, public transport, and workplaces
Access to schools, hospitals, and shopping centers
Low crime rate and quality neighborhood

If the locality is developing, it could offer more affordable pricing with long-term value.

5. Inspect the Property Thoroughly

Never make a decision based on photos or brochures. Visit the property, preferably more than once and at different times of the day. Check for:

Structural integrity
Water supply and drainage
Power backup
Ventilation and natural light
Age of the property and condition of fittings

If you're buying an under-construction property, verify the builder’s credibility, delivery timeline, and RERA registration.

6. Check All Legal Documents

Legal due diligence is crucial. Make sure the following documents are verified:

Title deed
Encumbrance certificate
Occupancy certificate (OC)
Building approval plan
Completion certificate (for ready-to-move homes)

Engage a property lawyer if needed. It’s a small investment that can protect you from major future disputes.

7. Factor in Additional Costs

Most first-time buyers underestimate the true cost of homeownership. Apart from the sale price, consider:

Stamp duty and registration charges
Home insurance
Broker’s commission
Interior designing or renovation
Monthly society maintenance fees

Having clarity on all costs will help you plan your finances better.

8. Think Long-Term

Don’t just buy a house for today—think about your future needs. Will you need more rooms as your family grows? Is the area conducive to resale or renting in the future?

Make sure the house aligns with your long-term personal and financial goals.

9. Learn the Buying Process

Understanding the buying process will help you avoid delays or confusion. The steps typically include:

Property search and site visits
Agreement of sale and booking amount
Loan processing and sanction
Legal verification and due diligence
Registration and possession

Staying informed can help you handle each step more confidently.

10. Don’t Rush—Take Expert Help

It’s easy to get emotionally attached or feel pressured to close quickly, especially if others are interested in the same property. But don’t rush.

Take your time, ask questions, and consult experts like real estate agents, lawyers, or financial advisors. Their insights can help you make better decisions.

Final Thoughts

Buying your first house is a life-changing event. The process can be intimidating, but with the right knowledge, preparation, and support, you can avoid common pitfalls and make a wise investment. Use this guide as your checklist and take informed, confident steps toward becoming a homeowner.