How to Buy a New House in India: A Practical Step by Step Guide

Are you thinking about buying a home? Good decision.

In India, buying a home can be easier with the help of professional property expert because they save lots of time, energy, and experience. Real Estate companies help home buyers as well as home sellers. India’s housing market is rapidly growing; whether the purpose of your investment is in real estate is commercial or residential.

In the first nine months of 2022, The Indian housing market has made a growth of 40% in the residential housing market.

Like any other country, in India as well there are several ways to buy and own a house. Few people prefer to buy a plot first and then build it to their own taste from ground zero. For that, they can arrange all resources by themselves or consider a more convenient project like turnkey projects for home construction. While other people prefer to buy ready-to-move houses, flats, and bungalows. 

it keeps changing with time. For example, the younger Don

Speaking of home buying, you might be getting the question, “how to buy a new house?”

Not only in India but anywhere if you want to buy a house, there are some steps you have to follow.

Practical step by step home-buying guide

Step 1- Know your purpose of home buying

How to Buy a New House in India: A Practical Step by Step Guide
Know your purpose of home buying – First step of home buying in India – By PropertyCloud

Yes, you should always know the purpose of everything you are spending for. If you are buying a home for investment purposes? Research the rent rate of the location where you wish to buy your home. Renting out your property will let you earn more than you invested. But if you are buying a home for self-purpose or settling down, research well about the property because you will be staying there for the long term. We have created a complete step-by-step guide on how to buy new house. Just follow the steps for a hassle-free home-buying experience.

Step 2 – Fix your budget

Step 2 - Fix your budget
Fix your budget – Second step of  home buying  in India – By PropertyCloud

When dealing with the complexities of Deemed Let Out Property, it’s essential for first-time homebuyers, or anyone engaging in a significant financial transaction, to establish a detailed budget to navigate the various expenses involved in purchasing a new home

You can start making a budget with a chart:

  • First, write down what is most needed. For example size of the carpet area, Floor selection if you choose a higher floor then definitely you have to pay more, If you believe in Vastu then the home should be Vastu compliant.
  • Predict your expenses and write them down. For example: booking amount, stamp duty charges, home buying costs, utility fixing expenses, small-big household expenses, etc.
  • Once you right down needs and home buying expenses We advise you that you should stick to your budget and you will find a perfect home according to your budget eventually.
  •  Make sure that your budget goal can take care of before heading installment.

Home buyers should know that not every expensive thing provides All  Amenities and Quality. Search for a location where your budget, amenities, and necessity fit.

Step 3 – Decide the type of property you want to buy

Step 3 - Decide the type of property you want to buy
Decide the type of property you want to buy – Third step of home buying in India – By PropertyCloud

Another essential step is to decide what kind of property you want to buy. You have to think about yourself and your family’s needs and requirements. Choose the property type: flat, builder floor, duplex house, row house, or plot to build a house on it. Not to forget the space, You also need to decide what type of BHK house you want as per your needs and under your budget.

Step 4 – Select a suitable location for you

Step 4 - Select a suitable location for you
Select a suitable location for you – Fourth step of home buying in India – By PropertyCloud

You have decided the purpose, fixed your budget, and property type, now you have to select the property location. Everyone wants a premium location with almost all the amenities, but houses will be very costly in such premium areas.

You have to make a balance between the budget you have decided on and the location where you wish to settle. Choose a location for the house, where you get basic amenities within a range of 500 mtrs to 1 Kilometer from the house; like a railway station, highway, grocery shop, school, hospital, and more.

Step 5 – Look for the property expert

Look for the property expert – Fifth step of home buying in India – By PropertyCloud

The process of buying a new home, the legal formalities and paperwork can get really chaotic. That’s why you will need an ethical property expert who will reduce your stress and handle the home buying process for you. If you are a first-time home buyer, you can not handle everything by yourself. Don’t worry for this problem our property experts are there to guide you.

Step 6 – Shop around for the best home loan rates

Step 6 - Shop around for the best home loan rates
Shop around for the best home loan rates – Sixth step of of home buying in India – By PropertyCloud

Home loans make the home-buying process uncomplicated, and you get some tax benefits. Who does not want to save money? Try looking for a bank with a low-interest rate. Here is a list of banks with home loan interest rates in india.

8.25% p.a. onwards

8.30% p.a. onwards

8.20% p.a. onwards

8.60% p.a. onwards

8.80% p.a. onwards

8.45% p.a. onwards

8.00% p.a. onwards

8.95% p.a. onwards

8.20% p.a. onwards

8.25% p.a. onwards

8.50% p.a. onwards

8.75% p.a. onwards

8.30% p.a. onwards

Home loan step-by-step procedure

  • Check Eligibility
  • Pre approval loan letter from a bank 
  • Execute the sale agreement
  • Documents you need to submit are your Aadhar card, PAN card, passport-size photo, salary slip, and 6-month bank statement.
  • Fill out the home loan application.
  • Submit property documents
  • Preparing the Sale Deed
  • Home Loan Disbursement
Get the best home rates at

Step 7 – Begin to identify properties

Step 7 - Begin to identify properties
Begin to identify properties – Seventh step of buying home in India – By PropertyCloud

Start identifying properties online with the help property portals like Make sure the property you are going to buy that should be fit in your criteria that you have already set. Figure out the configurations, amenities, location advantage, and developer record start touring these properties and strike out the ones that do not fulfilling your requirements. You can make a list of what you have seen in every property you can take pictures compare the properties, and then take a decision.

Step 8 – Perform legal diligence

Step 8 - Perform legal diligence
Perform legal diligence – Eighth step of home buying in India – By PropertyCloud

Whatever property type you are buying, just make sure the title of the property is clear. The home-buying process would also require a legal expert to read the legal documents and also perform other legal formalities. You don’t need to worry for this problem we are here to help once you buy property through us our property expert will guide you with all home buying process and legal formalities 

Legal process and documents of home buying:

Legal process and documents of home buying
Legal process and documents of home buying:
Title Verification

Title verification is one of the prime parts of ownership that proves the legal ownership of the property. The title verification checks and verifies the property documents.

Identity Verification

 Identity verification of sellers is important. Identity verification includes legal documents/deeds like an aadhar card, PAN card, etc. If the seller owns an organization, examine the legal documents related to the company registration, TAN number, etc.

Documents For Property Use

 Documents for property usage are needed to know for what purposes you have purchased a property. In some countries and India, several states’ laws made ” using land for other than what it was meant for” illegal. For other usages, you have to grant permission for land usage legally.

Construction Approvals

Verifying the building and layout plan is a must if the building is already constructed and the building must be authorized by municipal, government bodies, statutory, regulatory, etc. So that, they can provide electricity, water, environmental clearances, fire safety, etc

Occupancy Certificate

The seller has to obtain an OC (occupancy certificate ) before transferring the property titles to the buyer. A missing occupancy certificate can create some problems for the buyer, so make sure to check that. (it may create problems such as ranging from hefty penalties to the demolition of the property)

Tax Payments

If the seller fails to pay taxes, such as property transfer charges in India, it results in penalty charges, diminishing the result’s value. You need to verify with the municipal authorities that the seller has no unpaid taxes.

Mortgages and Other Claims

Check government websites for property registration in case, the building is under any debate if yes then the burden will be high.

Physical survey and access to the property

Whether you booked the house online or offline, A home buyer must inspect the property/house physically. Check if all the features match as mentioned on the website/promised papers. Physical visit lets you understand the routes, connectivity options, surrounding areas, neighbors, etc.

No Objection Certificates

As a buyer, you must demand the seller to show copies of NOC by the departments such as the environment department, sewage board, traffic, coordination department, pollution board, etc.

Compliance under RERA: 

Compliance under RERA is just like other legal home-buying processes. RERA is Real Estate Regulatory Authority, which makes the real estate industry clear and honest. You should check if the property is registered under your state’s Real Estate Regulatory Authority. Visit the RERA website for information about any default payments by the seller/developer, cases, etc.

(5 most important deeds of real estate fully explained)

What After Buying A Home?

Once you successfully purchased your dream home you have to keep in mind some important things.

  • Secure the sale deed
  • Digitalize the documents
  • Get updated with the new address
  • Home security
  • Associate the utilities
  • Fresh painting and flooring (Only if you can afford it at that time, it is unnecessary)

After all that hard work, take a rest. It is the perfect time to think about how you should decorate your dream home unless you did not prepare a budget. You might face some financial problems after buying a home, but if you make a budget for all your expenses, you are free from unexpected bills.

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