First-Time Home Buyer Checklist: 25 Things to Do Before You Sign

First-Time Home Buyer Checklist: 25 Things to Do Before You Sign

Buying your first home is exciting and overwhelming. This checklist ensures you don't miss any critical step.

Before You Start Looking

1. Check Your Credit Score

• Get CIBIL score (should be 750+ for best rates)
• Review report for errors
• Clear any outstanding dues

2. Calculate Your True Budget

• Monthly EMI should be ≤40% of take-home salary
• Account for 10-15% additional costs (registration, interiors, moving)
• Keep 6 months emergency fund untouched

3. Get Loan Pre-Approval

• Apply to 2-3 banks for pre-approval
• Compare interest rates and processing fees
• Understand your maximum eligible amount

4. Decide Must-Haves vs Nice-to-Haves

• List non-negotiables (location, size, parking)
• List preferences (floor, view, amenities)
• Be realistic—you won't get everything

During Property Search

5. Research the Location

• Check Google Maps for commute times (during peak hours)
• Visit area at different times (morning, evening, weekend)
• Talk to existing residents
• Check upcoming infrastructure projects

6. Verify Builder/Seller Reputation

• For new projects: Check builder's past deliveries
• Read online reviews on housing forums
• Visit builder's completed projects
• For resale: Verify seller's identity and ownership

7. Check RERA Registration

• Verify project on state RERA website
• Note RERA number for all communication
• Check approved plans and specifications
• Verify possession date commitment

Before Making an Offer

8. Physical Inspection

• Check water pressure in all taps
• Test all electrical points
• Look for wall cracks, water stains
• Check mobile network coverage
• Verify parking space allocation

9. Document Verification

• Title deed (chain for 30+ years)
• Encumbrance Certificate
• Approved building plan
• Occupation Certificate (for ready properties)
• Property tax receipts
• Society registration (if applicable)

10. Legal Due Diligence

• Hire a property lawyer (₹15,000-30,000)
• Get title search report
• Verify no pending litigation
• Check for any government acquisition notices

During Negotiation

11. Research Fair Price

• Check recent sale prices in same building/area
• Use government circle rates as baseline
• Account for floor rise, view premium
• Factor in age of property (for resale)

12. Negotiate Smartly

• Start 10-15% below your maximum
• Negotiate inclusions (fixtures, parking, club membership)
• Get all promises in writing
• Don't show desperation

13. Understand All Costs

• Agreement value
• GST (5% for under-construction, nil for ready)
• Stamp duty (varies by state: 5-7%)
• Registration charges (1%)
• Legal fees
• Brokerage (if applicable)
• Society transfer charges

Before Signing Agreement

14. Read Agreement Thoroughly

• Payment schedule
• Possession date with penalty clause
• Specifications and amenities promised
• Cancellation terms
• Dispute resolution mechanism

15. Verify All Approvals

• Building plan approval
• Environmental clearance (for large projects)
• Fire NOC
• Airport authority clearance (height restriction)

16. Check Payment Terms

• Never pay more than 10% before agreement registration
• Link payments to construction milestones
• Ensure payments through banking channels only
• Get receipts for every payment

Home Loan Process

17. Compare Lenders

• Interest rate (fixed vs floating)
• Processing fee
• Prepayment/foreclosure charges
• Insurance requirements

18. Submit Complete Documentation

• Identity proof (Aadhaar, PAN)
• Address proof
• Income proof (3 months salary slips, Form 16)
• Bank statements (6 months)
• Property documents

19. Understand Your Loan

• EMI amount and tenure
• Total interest over loan period
• Prepayment benefits
• Tax benefits available

At Registration

20. Prepare for Registration Day

• All parties present with ID proof
• Demand drafts for stamp duty and registration
• Two witnesses with ID proof
• All original property documents

21. Verify Document Contents

• Property details match physical property
• Names spelled correctly
• Payment terms as agreed
• All schedules and annexures attached

22. Complete Registration

• Pay stamp duty and registration fee
• Sign in presence of Sub-Registrar
• Collect registered documents (may take 2-4 weeks)

After Registration

23. Immediate Steps

• Collect original registered deed
• Get mutation done in property records
• Update property tax records
• Transfer utility connections

24. Safety Measures

• Store originals in bank locker
• Keep scanned copies in cloud storage
• Inform bank (for loan properties)
• Update nominee details

25. Financial Housekeeping

• Set up auto-debit for EMI
• Start home insurance
• Track tax benefit documents
• Create a home maintenance fund

Final Tips

• Don't skip steps to save time or money—shortcuts cost more in the long run
• Everything in writing—verbal promises are worthless
• When in doubt, ask—there are no stupid questions in property buying

Print this checklist. Tick each item. Your future self will thank you.