Section 1: Financial Readiness Assessment

Before starting your home search, assess your financial readiness to ensure a smooth and stress-free purchase process.

Calculate Your Home Budget

Step 1: Determine Affordable Home Price

Use the 3× annual income rule as a starting point:

• Annual household income: ₹ _____________
• Affordable home price (3×): ₹ _____________
• Maximum comfortable price (4×): ₹ _____________

Step 2: Down Payment Planning

Most home loans require 20% down payment, though some offer 10–15%.

Your Down Payment Plan:

• Target home price: ₹ _____________
• Down payment required (20%): ₹ _____________
• Current savings: ₹ _____________
• Shortfall to save: ₹ _____________
• Months to save: _____________

Step 3: EMI Affordability Check

Your home loan EMI should not exceed 40% of monthly income.

• Monthly household income: ₹ _____________
• Maximum affordable EMI (40%): ₹ _____________
• Existing EMIs (car, personal loan): ₹ _____________
• Available for home loan EMI: ₹ _____________

Emergency Fund & Other Savings

Don't deplete all savings for down payment. Maintain:

• [ ] Emergency fund: 6 months expenses untouched
• [ ] Home maintenance fund: 5% of home value
• [ ] Furnishing & moving costs: ₹ 2–5 lakh
• [ ] Continue retirement & goal SIPs

Section 2: Document Requirements

Organize these documents in advance for smooth home loan application and property registration.

Identity & Address Proof

• [ ] PAN Card (mandatory)
• [ ] Aadhaar Card (identity + address)
• [ ] Passport (if available)
• [ ] Voter ID or Driving License
• [ ] Recent passport-size photographs (10 copies)

Income & Employment Documents

For Salaried Individuals:

• [ ] Last 3 months salary slips
• [ ] Last 6 months bank statements
• [ ] Employment certificate / offer letter
• [ ] Form 16 (last 2 years)
• [ ] ITR (last 2 years with computation)

For Self-Employed / Business Owners:

• [ ] Business registration / GST certificate
• [ ] Last 2 years ITR with computation
• [ ] Audited financials (P&L, Balance Sheet)
• [ ] Last 6 months bank statements (business account)
• [ ] Business continuity proof (3+ years preferred)

Property Documents (from Seller)

• [ ] Sale deed / title deed
• [ ] Approved building plan
• [ ] Occupancy certificate (OC)
• [ ] Completion certificate
• [ ] Encumbrance certificate (last 13 years)
• [ ] Property tax receipts (last 5 years)
• [ ] Society NOC (for apartments)
• [ ] Khata certificate / mutation records

Home Loan Application Documents

• [ ] Loan application form (duly filled)
• [ ] Processing fee cheque / demand draft
• [ ] Property valuation report
• [ ] Builder-buyer agreement (under-construction)
• [ ] Allotment letter
• [ ] Payment receipts to builder

Section 3: Home Loan Options & Eligibility

Types of Home Loans

Interest Rate Options

• Fixed Rate: Same interest throughout loan tenure (rare, higher rates)
• Floating Rate: Linked to MCLR or repo rate, changes periodically (most common)
• Hybrid Rate: Fixed for initial years, then floating

Loan Eligibility Calculation

Banks calculate eligibility using multiple factors:

• Age: 21–65 years (salaried), up to 70 (self-employed)
• Income: Minimum ₹ 25,000/month (varies by lender)
• EMI to income ratio: Maximum 50% of monthly income
• Credit score: Above 750 preferred
• Employment stability: 2+ years (salaried), 3+ years (business)

Sample Eligibility Estimate

Compare Multiple Lenders

Get quotes from at least 3–5 banks/housing finance companies:

• [ ] SBI Home Loan
• [ ] HDFC Home Loan
• [ ] ICICI Home Loan
• [ ] LIC Housing Finance
• [ ] Other NBFCs (PNB Housing, Bajaj Finance, etc.)

Section 4: Hidden Costs Guide

Beyond the property price and down payment, budget for these additional expenses.

Upfront Costs (During Purchase)

Post-Purchase / Possession Costs

• Interior work & furnishing: ₹ 3–10 lakh (varies)
• Modular kitchen & wardrobes: ₹ 2–5 lakh
• Electrical fittings, fans, lights: ₹ 50,000 – ₹ 1.5 lakh
• Painting & flooring (if needed): ₹ 1–3 lakh
• Appliances (fridge, washing machine, AC): ₹ 1.5–4 lakh
• Furniture (beds, sofas, dining table): ₹ 2–6 lakh
• Moving & packers: ₹ 10,000 – ₹ 30,000

Ongoing Costs (Monthly / Annual)

• Home loan EMI: ₹ _____________ /month
• Society maintenance charges: ₹ _____________ /month
• Property tax: ₹ _____________ /year
• Home insurance: ₹ 5,000 – ₹ 15,000 /year
• Utilities (electricity, water, gas): ₹ _____________ /month
• Repairs & upkeep fund: 1% of property value /year

Section 5: Negotiation Tips & Strategy

Research Before Negotiation

• [ ] Check recent sale prices in the same locality (registration office data)
• [ ] Review property websites for similar listings
• [ ] Understand builder reputation & project track record
• [ ] Identify property flaws or pending approvals
• [ ] Know current market trend (buyer's vs seller's market)

Negotiation Tactics

• Start Low: Offer 10–15% below asking price (adjust based on market)
• Point Out Issues: Use property flaws to justify lower price
• Be Patient: Don't rush; show willingness to walk away
• Get Multiple Quotes: Leverage competing properties
• Ask for Extras: Request car parking, club membership, or furnishings
• Timing Matters: Month-end or quarter-end = better deals (sales targets)

Things to Negotiate Beyond Price

• [ ] Free car parking slot (1 or 2)
• [ ] Club membership / gym access included
• [ ] Builder to handle certain repairs / upgrades
• [ ] Flexible payment schedule
• [ ] Reduced booking amount
• [ ] Stamp duty assistance or other cost sharing

Red Flags to Watch For

• ⚠️ Seller in a rush to close deal (may indicate legal issues)
• ⚠️ Property priced significantly below market rate (too good to be true)
• ⚠️ Incomplete or missing property documents
• ⚠️ Builder with poor track record or delayed projects
• ⚠️ Property in dispute or under litigation
• ⚠️ No clear title or encumbrance issues

Section 6: Legal & Registration Checklist

Legal Due Diligence

Hire a property lawyer to verify all documents before signing:

• [ ] Clear title deed with no disputes
• [ ] Encumbrance certificate (EC) for last 13–30 years
• [ ] Property tax receipts up to date
• [ ] Approved building plan from municipal authority
• [ ] Occupancy certificate (OC) or completion certificate
• [ ] RERA registration (for under-construction)
• [ ] No pending litigation or legal notices
• [ ] NOC from society (for resale properties)

Builder Checks (Under-Construction)

• [ ] RERA registration number verified
• [ ] Builder's track record & past projects checked
• [ ] All approvals in place (environment, fire safety, etc.)
• [ ] Possession timeline clearly mentioned in agreement
• [ ] Penalty clause for delayed possession

Agreement & Registration Process

• [ ] Agreement to Sell / Sale Agreement drafted by lawyer
• [ ] All terms clearly mentioned (price, possession date, penalties)
• [ ] Token / booking amount paid (get receipt)
• [ ] Stamp duty & registration fee calculated
• [ ] Registration date scheduled at sub-registrar office
• [ ] All parties present with original documents
• [ ] Sale deed executed and registered
• [ ] Possession letter received

Post-Registration Tasks

• [ ] Obtain registered sale deed copy
• [ ] Transfer property tax to your name
• [ ] Transfer electricity & water connections
• [ ] Get society membership (if applicable)
• [ ] Update property address in bank records
• [ ] Purchase home insurance
• [ ] Create home inventory & document storage system