Top 4 Obstacles to Buying a Home in India

Buying a Home in IndiaMost people invest their hard earned money in buying their first house which will save the monthly rent. The first time home buyers face a lot of obstacles in the process of owning their dream house. This can be easily solved with a little knowledge in the home buying process. Here is a list of four obstacles to avoid while buying a home.

Tips 1 : Finding the right home

When you look out for the right home, it is necessary to concentrate on a few criteria which will make your buying worth.

Buying a Home in IndiaLocation: The location of your home is directly proportional to the value of the property. If you buy a house in an established or an upcoming neighborhood, the investment value of your home will grow over time. So get adequate information about the locality before buying a house.

Amenities: When you buy an already constructed house, it is necessary to look for good amenities. You can check for amenities like ceiling and floor finishes, availability of outdoor space, proper bathroom facilities etc.

 Family needs: Consider your family’s requirement in choosing a home. If the family is big, then choose a house with more number of rooms than a spacious two room apartment. If there are elders and kids in the family, look for houses that are located near schools, hospitals, market area etc.

Security: Avoid buying houses in the crime ridden neighborhood even if the property is cheap. You can buy an apartment where 24 hours security service is available. This will give a complete protection to your family and the property.

Price: It is important to have an affordable budget range while looking for a home. The price depends mainly on the locality, transportation facilities and age of the building. Select a house that falls under your budget yet satisfying all the above criteria.

Tips 2 : Obtaining a down payment

downpaymentArranging the finances to buy a home is little difficult but if you have knowledge in availing home loans, it becomes easy. You can either buy a home with your life savings or opt for a home loan. It is not possible to have huge savings to buy a house with a single payment, so most people prefer EMI mode of payment which requires a down payment. Although many banks offer home loans based on the income, one can avail only 80% of the loan. The down payment is usually around 20% of the whole amount and the rest can be paid via EMI options.

It is necessary to have some savings to pay the down payment or you can get help in obtaining the finances from your family or friends. Make sure that you keep some funds reserved for the down payment or any such needs.

Tips 3 : Satisfying the loan conditions

Home loan

To avail a loan, it is necessary to satisfy all the norms set by the lender.  Understand the lender’s requirement and apply in those banks that suit your eligibility, in order to avoid rejections.  The banks collect a non-refundable processing fee of 0.5% to 1.0% from the loan amount to verify the necessary documents and to complete the processing. In case of a loan rejection, you will not get a refund.

If you choose the fixed interest rate option, some banks have the policy of changing the fixed rates every 2 years. So it better to read and understand all the norms of the loan documents. Apart from these, the banks also have a different property valuation rates prepared by legal experts. You should be prepared to have emergency funds to cover up any unexpected backlogs.  It is important to have proper title deeds and NOC documents to avail the loan.

The documentation is the most important step in availing a home loan. You can have the basic document ready before approaching the lender. The rest of the documents can be submitted during the process.

Tips 4 : Successfully Completing the Documentation process


You can apply for a home loan with a formal loan application. The loan application requires details about education, occupation, income, bank statements, personal information etc. You should substantiate all the information with proper proof documents. Keep necessary documents ready for verification which includes:

  • Age proof
  • Identity proof
  • Address proof
  • Educational certificates
  • Income proof
  • Bank statements


Next step is the verification of the property and the required documents. At this point, the lender will carry out the property valuation.

Step 3:

The lender will send the sanction letter which contains the loan amount and the terms of the loan. You are required to submit the property related documents at this stage

Step 4:

The bank will collect the title deed as a security for the loan offered. You can confirm the loan documentations and sign the loan papers.

Step 5:

You can avail the loan amount in parts, in case of the building construction. The EMI will begin only when the whole amount is drawn from the bank.

It is advisable to consult your lender and know the list of required documents beforehand to avoid any unnecessary hassle.

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