Everything You Need To Know Before Buying a House

Table of Contents

Home Buying Guide

If you are here, you must be planning to buy a house now or soon. The process can be a bit overwhelming. We have come up with a complete home-buying guide, crafted by experts in the field. You will learn from budgeting, and applying for home loans to documentation, taxes, hidden charges, and regulations you must be aware of. While leaving this page you will be filled in with all the necessary information that will get you through the entire process.

Financial Planning and Feasibility

Buying a house can be one of the greatest achievements in a person’s life. It isn’t about picking the right color but a huge step in home-buying. The main things to be considered regarding financial planning and feasibility are Budgeting, Saving and Down payment, and Home loans.


Budgeting is no child’s play. Many zeros are synonymous with buying a house in the present-day scenario. Navigating through financial planning can feel like sailing through a rough sea. Budgeting eliminates it and creates an itinerary throughout the process, ensuring smoothness. Understanding your income is important in this process. Before setting out to buy a house, gather your bank statements and credit card bills. They will help you ascertain your budget.

●Down payment and Savings

The down payment is the lump sum amount you will pay while buying your house. You can either pay the amount in full or pay half or a major part of it and take a loan for the rest of the amount. Imagine the down payment as a ladder to your dream house, the higher you build your ladder (down payment), the nearer you are to your house.

Savings play a crucial role in the home-buying process. Savings can give you a leg-up in financial planning. While a part of the amount is paid as a down payment. The rest can be covered by your savings. The more you save, the lesser the loan amount which in turn reduces the interest rate. If you are planning to buy a home in the future, start saving as soon as possible. Embrace the “Save and Forget” method for effective saving. Every penny matters.

Creating a separate bank account to save your money is the best option. Have the budget planned before you start saving, this will let you keep track of the money. Consider multiple saving options such as High-yield saving accounts or Certificates of Deposit (CDs). In the long consider, Individual Retirement accounts (IRA) for potential tax benefits.

●Home Loans

A home loan is the engine that powers up your home-buying dream. When your savings and down payment did not make it up to the budget. You can avail a wide array of home loan options. Here are the different types of home loans available:


  • Fixed Rate Mortgage – Some lenders provide fixed-rate mortgages throughout the loan term.
  • Adjustable rate mortgage – Some lenders set a particular rate of interest for a term and revise it according to the market rates.


It is advised to shop around before finalizing your lenders. Ask every lender, negotiate as much as you can, and finalize the one with the lowest price in the market. There are a lot of factors that affect your loan eligibility. Take a look at our article that sheds more light on the home loan process.


It is important to keep a good profile to get a home loan. Your credit score, genuineness, and stability will be verified before sanctioning your loan. Communicating openly with your lender helps you take calculated risks.

Choosing the Right Property

While budgeting is important on the one hand, choosing the right property is important on the other hand. All your efforts on budgeting and execution will go in vain if the property you are going to invest in isn’t worth the investment. Here are some parameters that will assure you are, you are choosing the right house:


  • Consider whether the locality suits your lifestyle. Is your office commutable from there? Are your kids’ school nearby? Are there hospitals nearby? Are grocery shops nearby? Is the place safe at night? Are there safe parking facilities?
  • Check whether the locality is emerging. Check whether it will emerge gracefully. And make it up to the needs.
  • Do a vibe check with the neighbors. It is significant to know your neighborhood before choosing the property.


If your proposed property ticks all the boxes, you can go ahead without second thoughts.

Types of Houses

Before you go house-hunting, understand the types of houses. Here are some curated types of houses:

  • Independent House – A quintessential dream for everyone. It affords spaciousness, personalization, and privacy. You can choose independent houses if you need some space aloof from the bustling crowd.
  • Apartments – These raised havens are yours if you love living as a community. If you are in a city bustling with crowds, apartments can be a good choice in terms of safety and affordability.
  • Builder Floors – Builder floors are the best choice if you want some privacy as well as a conducive community to live in. Some builders have shared gyms and parks.
  • Row houses – Row houses are closely knit, they are perfect for young couples who seek a lovely neighborhood and privacy at the same time.

There are a lot of options to choose from when it comes to choosing a house. You can pick one that suits your budget and preference.

Property inspection

Property inspection is paramount while buying a house. It acts as a window between you and the seller. Here are some reasons why a property inspection is necessary:


  • A property inspection will let you make informed decisions regarding the site,
  • You can acquaint yourself with the locality and find out threats if any,
  • You can check whether the environment is conducive or not and allows you to negotiate.

Also, read our detailed article on the Importance of site visits.

Documentation and Paperwork

Documentation and paperwork related to buying a house can be overwhelming. Here are some important documents related to buying a home.

  • Sales Deed – A sales deal is the most important document that has the official transfer of the land from the seller to you. It is the evidence that it is registered at a sub-registrar’s office as per the Indian Registration Act, 1908.
  • Mother Deed – The mother deed is the document that has the chain of ownership of the land. It is verified to ensure the genuineness of the land.
  • Encumbrance certificate – The Encumbrance certificate states that the land does not have any legal complications such as outstanding mortgages and disputes.
  • Building Completion Certificate or Occupancy Certificate (OC) – The occupancy certificate is proof that the house is built according to the approved plan and is suitable for habitation.
  • Apart from the legal documents, you have to provide your PAN card, Aadhar card, bank statements, and IT returns.

Agreements and Contracts

  • Agreement to sell – This agreement has the purchase price, payment schedule, and possession date of the house.
  • Sales deed – A sales deed has the description of the property, legal rights and liabilities, and signature of both parties.

Regulations and Taxes

  • Stamp duty – Stamp duty is levied to legally register the purchase of the house. It is usually charged around 3 to 8% of the property’s value.
  • GST – A 5% is levied for every construction property.
  • Tax Deducted at Source (TDS) – A standard 1% is levied during the payment as per section 1941 A.

 Additional Considerations

Apart from the capital amount, you will have to pay some hidden charges while buying a house.

  • The closing cost comes with 3 to 5% of the purchase price of the house. It is charged for the legal paperwork carried out.
  • In case you are moving in, the transportation charges should be considered.
  • Depending on the property, the insurance amount can vary.
  • You need to save a particular amount in case of maintenance and repair.

Resale Value

  • You should keep track of the market trends and development projects in the area in case you want to re-sell the house in the future.


  • Things will last longer if they are taken care of. It applies to houses too. The house should be checked for any cracks or damage from time to time to ensure longevity.

Congratulations in Advance!

Buying a house is a meticulous process. Every step should be dealt with care. From budgeting and choosing the right location to the agreements and registration process. If you are going to buy a house in the future, it is advised to make a checklist of the above-mentioned details and carry out the process without any stress.


Still, Need an easy way out?

We are Isha Homes. we are the best builders in Chennai, known for our exceptional sustainable, and eco-friendly homes. Our extensive portfolio showcases a diverse range of properties, including apartments, villas, and plots available for sale. With a strong focus on customer satisfaction, we create serene environments that address the needs and desires of families. Our commitment to excellence and timely delivery has established us as the most trusted and credible real estate company in Chennai.

Check out our ongoing projects here.

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