First Time House Buyer in Mohali: Read This Before You Start

From Zero to Keys — Here's Everything I Wish I Knew Before I Started

When I decided to buy my first house, honestly? I panicked a little. Everyone around me seemed to know what they were doing and talking about CIBIL scores, stamp duty, carpet area — I was just nodding along, completely lost, with no idea where to start or whom to ask.

The internet didn't help much either. Every article was either too technical or trying to sell me something. What I really needed was a friend who had already been through it, sitting across from me with a cup of chai, telling me exactly what to do and helping me understand what I was actually looking for.

So that's what this is. I'm that friend. I made the mistakes, asked the embarrassing questions, and figured it out the hard way — so you don't have to. Let's break it down, one step at a time.

Step 1: Begin With Your Budget

Before you even start browsing properties on property sites, sit down and honestly assess your finances. I made the mistake of falling in love with a house I couldn't afford — don't do that to yourself.

Ask yourself:

• How much can I pay upfront? Banks typically fund 75–90% of the property value, so you need at least 10–25% as a down payment.
• What monthly payment can I actually manage? A simple rule: your EMI should not be more than 40% of what you earn every month.
• Do I have an emergency fund left over after the down payment? Don't drain everything into the purchase — that's not advisable.

Use a home loan EMI calculator (most bank websites have one) to get a rough number before you start hunting.

Step 2: Check (and Improve) Your CIBIL Score

Your CIBIL score is everything when it comes to getting a home loan in India. A score of 750 or above is considered good and will help you get better interest rates.

I checked mine on the CIBIL website before applying for a loan — and I would strongly recommend you do the same. If your score is low, take a few months to pay off existing debts and credit card dues before approaching a bank. You can also call your bank's relationship manager for real guidance.

Step 3: Get a Home Loan Pre-Approval

This step is underrated. Before you shortlist flats or houses, approach 2–3 banks or NBFCs and get a pre-approval letter. This tells you exactly how much the bank is willing to lend you, and it also makes you a serious buyer in the eyes of sellers and builders.

I compared offers from a couple of banks (SBI and an NBFC). Check the interest rate, processing fee, prepayment charges, and tenure flexibility — not just the EMI amount.

Step 4: Shortlist the Right Location

Once you know your budget, start thinking about location and be realistic. I had a wishlist: good connectivity, nearby schools, a market, and reasonable maintenance. I ended up compromising a little on distance from work, but gained a much better neighbourhood.

Things to evaluate:

• Proximity to your workplace — factor in daily commute time and cost.
• Social infrastructure — hospitals, schools, grocery stores nearby.
• Future development plans — a new metro station or highway nearby can quietly push your property's value up more than you would expect.
• Resale potential — even if you plan to stay, think ahead.

Step 5: Research Real Estate Companies, Builders, and Projects Thoroughly

I spent weeks going through listings on random websites before I found a platform that actually made sense: verified projects, genuine builders, honest reviews — all in one place. It saved me more time than I can tell you.

You can research on your own, and this guide will help you do exactly that. But if there's one thing I would tell every first-time buyer, it's this: a good real estate company is worth its weight in gold. They bring experience, verified listings, and trusted builder relationships to the table, so you're never navigating alone.

• RERA registration — every project and builder must be registered under RERA (Real Estate Regulatory Authority).
• Builder's past projects — visit their completed projects if possible. Talk to residents there.
• Delivery track record — have they delivered on time before? Delays are common; chronic delays are a red flag.
• Google reviews and housing forums — real buyers leave real feedback.

Step 6: Visit the Site (More Than Once)

Don't just rely on photos and virtual tours. Visit the actual site, at different times of day if you can.

On my first visit I was impressed. On my second visit (on a weekday morning), I noticed the water pressure was weak and the parking was chaotic. Always visit at least twice before making a decision.

Questions to ask:

• What is the exact carpet area vs. super built-up area?
• What are the monthly maintenance charges?
• Is there a sinking fund? How is it managed?
• What amenities are included and what costs extra?

Step 7: Understand the Legal Documents

This is the part nobody tells you about, and it nearly gave me a headache — but it's absolutely critical. Either hire an expert or partner with a reliable property portal whose legal team can verify all these documents. That's one of the biggest advantages of not going it alone:

• Title Deed — confirms the seller owns what they're selling.
• Encumbrance Certificate — confirms there are no outstanding loans or legal dues on the property.
• Occupancy Certificate (OC) / Completion Certificate (CC) — confirms the building was legally constructed per approved plans.
• Approved Building Plan — from the local municipal authority.
• Sale Agreement — get every verbal promise put in writing here.

Never skip legal due diligence. Ever.

Step 8: Negotiate Before You Sign

Everything is negotiable — the price, the payment schedule, the car parking charges, even the club membership fee. I was nervous to negotiate, but ended up saving a decent amount just by asking.

If it's a resale flat, compare recent transaction prices in the same building or locality using Government's Ready Reckoner rates and property portals to know whether the asking price is fair.

Step 9: Sign the Sale Agreement and Pay the Token Amount

Once you're satisfied, you'll sign a Sale Agreement (not the final sale deed yet) and pay a token advance — usually 1–2% of the property value. This legally commits both parties.

Make sure the sale agreement clearly mentions:

• Total price and payment schedule.
• Possession date with penalty clause for delays.
• What happens if either party backs out.
• List of fixtures and fittings included.

Step 10: Apply for the Home Loan Formally

Now that you have a confirmed property, go back to your chosen bank and apply for the home loan formally. The bank will do its own technical and legal verification of the property — which is actually a good safety net for you too.

Keep these documents ready:

• PAN card, Aadhaar, passport-size photos.
• Last 3 years' ITR and Form 16 (for salaried).
• 6 months' bank statements.
• Salary slips (last 3 months).
• All property documents.

Step 11: Pay Stamp Duty and Register the Property

This is the final and most official step. You'll pay stamp duty (varies by state — typically 5–7% for men, lower for women buyers in many states) and registration charges (usually 1%) at the Sub-Registrar's office.

After registration, you officially own the house. Collect your original Sale Deed and keep it safe — this is your most important document.

Step 12: Move In and Breathe!

Once possession is handed over, do a thorough inspection of the house before signing the possession letter. Check all fittings, electrical points, plumbing, walls, windows — everything. Raise any snag list items with the builder in writing before you sign.

And then — celebrate. You've earned it!

A Few Things I Wish Someone Had Told Me

• Don't rush. The "right" house won't disappear overnight — take your time.
• Read everything before signing. Every single word.
• Budget for hidden costs. Stamp duty, registration, interior work, GST (for under-construction), society deposit — these add up to 10–15% over the base price.
• Women co-owners get stamp duty benefits in many states — worth considering.
• Home buying is emotional — try to keep it logical too.

Buying your first house is one of the biggest decisions of your life — but it doesn't have to be terrifying. With the right information and a little patience, you'll get there. I did, and so will you.

A flat in a society gives you security, maintenance support, and amenities like parking, gym, and more — all managed for you. It's generally more affordable in cities and easier to resell.

An independent house gives you more space, privacy, and freedom to renovate as you want, but maintenance is entirely on you, and the upfront cost is usually higher.

You now have the knowledge. Mohali123 has the properties. The only thing left is to take the first step.

A Mohali123 community member, sharing real experience for real buyers.

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