First-Time Home Buyer’s Checklist in India (2025 Edition)

That’s why we’ve created this First-Time Home Buyer’s Checklist 2025 — a detailed, step-by-step guide to help you move confidently from “just thinking about buying” to “holding the keys to your dream home”..

1. Understand What “First-Time Home Buyer” Means

A first-time home buyer in India typically refers to someone who has never owned a residential property anywhere in India or abroad. This definition is important because it impacts the benefits you can avail — from government schemes to tax deductions on your home loan interest and principal repayments.

2. Assess Your Financial Readiness

Before browsing property listings, get your finances in order:

Set a Realistic Budget

Figure out what you can afford based on your income, savings, and monthly expenses. Your EMIs should ideally not exceed ~40% of your monthly income. Factor in:

• Property price

• Stamp duty & registration charges

• GST (for under-construction properties)

• Legal fees, interiors, maintenance funds

• Contingencies (10–15% extra)

Check & Improve Your Credit Score

A good credit score (>750) boosts loan approval chances with better interest rates. Pay off existing debts and clear any overdue bills before applying.

Save for Down Payment

Most lenders finance up to 80% of the property value, so plan to save at least 20% as a down payment. Additionally, keep funds ready for upfront costs such as stamp duty and registration.

3. Explore Government Schemes & Tax Benefits

As a first-time buyer in 2025, you may qualify for:

Pradhan Mantri Awas Yojana (PMAY)

This central scheme offers interest subsidies on home loans for eligible income groups — typically EWS, LIG, and MIG — helping reduce the lifetime cost of your loan.

Income Tax Deductions

Under Sections like 80C, 80EE, and 80EEA, you can claim deductions on:

• Principal repayment (up to ₹1.5 lakh under 80C)

• Interest payment (up to ₹2 lakh under Section 24b)

• Additional interest deduction for first-time buyers under certain conditions.

Tip: Check the latest tax rules and eligibility every year before buying.

4. Choose the Right Location & Property Type

Location hugely impacts lifestyle and potential appreciation:

• Proximity to work, schools, hospitals, metro and public transport

• Safety, walkability, green spaces and future infrastructure plans

• Locality appreciation trends and resale value

Also identify whether you want:

• Ready-to-move-in home — quick possession but often higher price

• Under-construction property — lower price but longer wait

• Resale property — immediate occupancy with negotiation scope

5. Legal & Documentation Checklist

This step protects you from fraud, disputes and delays — and it’s absolutely non-negotiable.

Essential Legal Verifications

• Clear title deed & ownership chain

• Encumbrance Certificate (EC) to confirm no hidden liabilities

• RERA registration (mandatory for new projects; check online)

• Building plan approval, IOD/CC/OC for construction compliance

• Check property taxes, NOC from relevant authorities

Important Documents to Have

• Sale deed

• Allotment letter / agreement to sell

• Payment receipts & bank statements

• Khata / property tax receipts

• Possession certificates (ready properties)

• Loan sanction and repayment papers

6. Property Inspection Checklist

Before sealing any deal, inspect the property physically — or better, with a professional:

• Structural integrity: Cracks, dampness, uneven floors

• Roofing & waterproofing

• Electrical wiring & safety compliance

• Plumbing, water pressure, drainage

• Doors, windows, ventilation and natural light

• Fire safety, security systems, lifts & power backup

Inspection is essential to avoid costly repairs later.

7. Home Loan & Financial Formalities

Choose the Right Loan

Compare home loan options based on:

• Interest rates (fixed vs floating)

• Processing fees

• Repayment flexibility & foreclosure charges

Getting pre-approval not only gives clarity on budget, it also signals seriousness to sellers.

Loan Documentation

Have the following ready:

• KYC documents (PAN, Aadhaar, passport, Voter ID)

• Income proofs (salary slips, ITRs)

• Bank statements

• Property documents & agreements

8. After the Deal: Registration & Possession

Once negotiation and agreement are final:

1. Pay stamp duty & registration fees as per your state’s rates

2. Register the property at the sub-registrar office

3. Collect all original documents

4. Change utility connections & update records

5. Settle into your new home!

❌ Common Mistakes First-Time Buyers Should Avoid

• Ignoring legal verifications

• Not factoring hidden costs

• Skipping physical inspection

• Borrowing the maximum loan available

• Not checking builder/developer reputation

📌 Frequently Asked Questions (FAQs)

Q1. What’s the minimum down payment required for first-time home buyers in 2025?
Generally, lenders expect you to arrange around 20% of the property value, though some schemes allow lower contributions with specific conditions.

Q2. Why is RERA registration important for first-time buyers?
RERA ensures transparency, protects buyers from delays, and lets you verify project details online before booking.

Q3. Can first-time home buyers get lower interest rates?
Yes — through government schemes like PMAY and competitive home loan offers, new buyers often unlock better interest and tax benefits.

Final Thoughts

Becoming a homeowner for the first time is exciting — but smart planning makes it stress-free. By following this 2025 First-Time Home Buyer’s Checklist, you not only protect your investment, you also ensure a smooth journey from dreaming to owning.

Ready to find your perfect home? Explore RERA-verified options at 99lakhs.com and take your first step with confidence!