{"id":1082394,"date":"2025-06-30T13:08:37","date_gmt":"2025-06-30T07:38:37","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=1082394"},"modified":"2025-06-30T13:14:24","modified_gmt":"2025-06-30T07:44:24","slug":"first-time-home-buyer-avoid-these-mistakes","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/first-time-home-buyer-avoid-these-mistakes","title":{"rendered":"First-Time Home Buyer: Avoid These Mistakes"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Are you thinking of purchasing your first home? As a <\/span>first-time home buyer in India<span style=\"font-weight: 400;\">, it\u2019s natural to feel excited. However, have you thoroughly considered all the details before making this purchase? One moment, you\u2019re picturing your ideal living room, and the next, you find yourself stuck on the paperwork that seems perplexing.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The truth is, most first-time buyers don\u2019t mess up because they\u2019re careless; they mess up because no one tells them what to watch out for. That\u2019s where we come in to help you avoid such blunders. This blog will guide you in avoiding first-time home buyer mistakes and making the most important decisions of your life simpler and clearer. So, you won\u2019t experience a mess-up due to a lack of guidance on what to watch out for.<\/span><\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h2>Table of contents<\/h2><ul><li><a href=\"#h-skipping-the-budget-talk-and-falling-for-the-dream-home\" data-level=\"2\">Skipping the Budget Talk and Falling for the Dream Home<\/a><\/li><li><a href=\"#h-not-getting-pre-approved-before-house-hunting\" data-level=\"2\">Not Getting Pre-Approved Before House Hunting<\/a><\/li><li><a href=\"#h-overlooking-additional-costs-beyond-the-down-payment\" data-level=\"2\">Overlooking Additional Costs Beyond the Down Payment<\/a><\/li><li><a href=\"#h-ignoring-the-importance-of-a-home-inspection\" data-level=\"2\">Ignoring the Importance of a Home Inspection<\/a><\/li><li><a href=\"#h-draining-savings-for-the-down-payment\" data-level=\"2\">Draining Savings for the Down Payment<\/a><\/li><li><a href=\"#h-ignoring-resale-value\" data-level=\"2\">Ignoring Resale Value<\/a><\/li><li><a href=\"#h-don-t-allow-your-heart-to-break-the-bank\" data-level=\"2\">Don\u2019t Allow Your Heart to Break the Bank<\/a><\/li><li><a href=\"#h-rushing-the-decision\" data-level=\"2\">Rushing the Decision<\/a><\/li><li><a href=\"#h-think-ten-years-ahead\" data-level=\"2\">Think Ten Years Ahead<\/a><\/li><li><a href=\"#h-conclusion\" data-level=\"2\">Conclusion<\/a><\/li><li><a href=\"#h-frequently-asked-questions\" data-level=\"2\">Frequently Asked Questions<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-skipping-the-budget-talk-and-falling-for-the-dream-home\"><span style=\"font-weight: 400;\">Skipping the Budget Talk and Falling for the Dream Home<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">It\u2019s easy to fall for a home that somehow seems a little out of reach. It can be due to a stunning balcony, a <a href=\"https:\/\/www.squareyards.com\/blog\/simple-kitchen-design-decart\">sleek kitchen<\/a>, or that one extra room you never thought you needed until now. And when the bank says you\u2019re approved, it\u2019s tempting to go for it. But here\u2019s the truth. Just because a lender gives you the green light doesn\u2019t mean it fits your life. Many first-time buyers overlook the real expenses, such as bills, repairs, daily costs, and emergency expenses. Start with a budget that\u2019s grounded in your lifestyle, not just your loan approval. That one step can save you years of stress.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-not-getting-pre-approved-before-house-hunting\"><span style=\"font-weight: 400;\">Not Getting Pre-Approved Before House Hunting<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Browsing through listings and envisioning oneself in various homes can be an enthralling experience. However, being a first-time home buyer searching for a home without pre-approval is like riding a bike without brakes. Many individuals have made this mistake, thinking they could obtain approval after finding the perfect property. In truth, sellers and agents take you seriously only when you have a pre-approval letter ready. This not only clarifies the maximum amount you can borrow but also offers a financial viewpoint when making an offer. It sets your limits and expectations accurately from the outset.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-overlooking-additional-costs-beyond-the-down-payment\"><span style=\"font-weight: 400;\">Overlooking Additional Costs Beyond the Down Payment<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Saving a deposit for the house we want to buy is a sensible idea. However, there are additional costs to consider, such as registration fees, stamp duty, home loan processing fees, insurance, and moving expenses. As first-time home buyers, we often overlook these costs, which can accumulate faster than we anticipate. This transforms our celebration into a source of stress.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In India, additional costs usually range between 7% and 10% of the property\u2019s value. For example, if you are buying an apartment worth \u20b950 lakh, you should be ready to spend an extra \u20b93.5 lakh to \u20b95 lakh on related charges alone.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Here is a simple breakdown of common additional costs in India:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><span style=\"font-weight: 400;\">Cost Type<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">Estimated Range<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Stamp Duty and Registration<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">6% to 8% of property value (varies by state)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Home Loan Processing Fee<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">0.25% to 1% of the loan amount<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Property Insurance<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">\u20b95,000 to \u20b915,000 annually<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Legal Fees (if applicable)<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">\u20b910,000 to \u20b950,000 approx<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Moving Expenses<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">\u20b920,000 to \u20b960,000 depending on distance and volume<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400;\">Society Maintenance Deposit (one time)<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400;\">\u20b925,000 to \u20b91 lakh approx<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ignoring-the-importance-of-a-home-inspection\"><span style=\"font-weight: 400;\">Ignoring the Importance of a Home Inspection<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Finding a home that is within your budget and fulfils all your desires may elevate your spirits. The question here is, have you thoroughly inspected your potential home? Neglecting this can turn your dreams to dust. Numerous issues, such as plumbing leaks, electrical faults, structural cracks, or pest problems, often accompany resale properties. These problems are not always visible at first glance, but can cost you lakhs to rectify later.&nbsp; According to the data, a 2,000 sq. ft. home can have an average of 130 defects or snags. If each snag costs around \u20b91,000 to fix, homeowners could spend approximately \u20b91.3 lakhs on repairs. Investing \u20b95,000 to \u20b915,000 in a professional inspection now may save you lakhs in the long run. It&#8217;s a small price to pay for peace of mind.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-draining-savings-for-the-down-payment\"><span style=\"font-weight: 400;\">Draining Savings for the Down Payment<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">We usually save money that can help us out in difficult situations, or to buy something, and we have waited a long time to get it. We will stake all our savings to make a down payment. The same goes in the case of buying a new house. This can help reduce the mortgage burden by saving on interest payments, but it leaves you financially exposed. Emergency funds are one of the necessary things that can save you from a disastrous phase. These emergency funds should last at least 3-6 months.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The government is not sitting back when it comes to helping first-time homebuyers. Schemes like <\/span><a href=\"https:\/\/www.squareyards.com\/blog\/pradhan-mantri-awas-yojana-pmay-yojart\">Pradhan Mantri Awas Yojana (PMAY)<\/a><span style=\"font-weight: 400;\"> and the <\/span>Credit Linked Subsidy Scheme (CLSS)<span style=\"font-weight: 400;\"> can help reduce the interest you pay on your home loan. That means you could save a good amount over time. Additionally, some banks offer special deals for individuals purchasing their first home. These include lower interest rates, easier rules, or more time to repay the loan. It\u2019s a good idea to check out these offers. They can make buying your first home easier and save you money, too.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ignoring-resale-value\"><span style=\"font-weight: 400;\">Ignoring Resale Value<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">You\u2019ve likely heard the phrase \u201cLocation makes a lot of difference\u201d, but resale value also deserves consideration. While you might be purchasing a home for yourself now, life often takes unexpected turns. What if you need to relocate for your job or simply wish for a different environment later on? A location close to quality schools, convenient transportation, shopping, and healthcare facilities is likely to attract potential buyers in the future. Additionally, the builder\u2019s reputation is crucial when you eventually decide to hang that \u201cFor Sale\u201d sign.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Additionally, as a first-time home buyer, stay informed about developments in the neighbourhood. The new metro line or airport terminal could significantly increase property values. Even if your investment is long-term, a little foresight can greatly safeguard your investment.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-don-t-allow-your-heart-to-break-the-bank\"><span style=\"font-weight: 400;\">Don\u2019t Allow Your Heart to Break the Bank<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Going for a house that is way too expensive for your budget is like ordering a Starbucks with a budget of a roadside tea. The house can be attractive, but it can send you to the verge of bankruptcy. No home is worth the anxiety. As a first-time home buyer set your highest-price threshold and stick to it, including not only the mortgage but also utilities, upkeep, and life&#8217;s unexpected expenses. Be patient here. Continue surfing until you land on a spot that clicks and falls comfortably within your budget. Your future self, who doesn&#8217;t want to have to choose between gas and groceries, will be grateful.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rushing-the-decision\"><span style=\"font-weight: 400;\">Rushing the Decision<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">With the busy property market, there tends to be pressure to act quickly. Nevertheless, making swift decisions can have negative consequences. Take your time, carefully consider all the information, and make comparisons between various properties before finally settling on your preferred one. Don&#8217;t be swayed by external forces, such as peer pressure, market trends, or a pushy seller, into making a decision hastily.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If it doesn&#8217;t feel right, whether it&#8217;s an unreasonable seller, missing paperwork, or issues with the property, don&#8217;t hesitate to walk away. There will be more opportunities down the road, and spending the time to seek out the right property will be worth it in the long run.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-think-ten-years-ahead\"><span style=\"font-weight: 400;\">Think Ten Years Ahead<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Your initial home isn&#8217;t a one-time affair; it must evolve with you. Having space for a future family, a home office, or even a room to entertain friends can be the difference between an &#8220;adorable starter pad&#8221; and &#8220;I&#8217;m trapped here.&#8221; Consider how your requirements may change, such as the presence of children, animals, and telecommuting, and select a location that can accommodate these factors.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Bonus: Those same features tend to increase resale value when you do decide to relocate.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Buying your first home is one of the most significant decisions you will make in your life. It can be overwhelming, but don\u2019t let yourself get trapped into something that doesn\u2019t look good. Breathe in and breathe out. Consider all the circumstances and take all the necessary measures, even if it means spending more time and effort. Consult with the best agencies and individuals, visit the sites, take the time to thoroughly review a deal, cross-check all legalities, and follow all necessary steps. Then ask yourself, \u201cHave I taken care of everything?\u201d Only after that, go for a deal. At last, you will be at the right place where you are meant to be.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions\"><span style=\"font-weight: 400;\">Frequently Asked Questions<\/span><\/h2>\n\n\n\t\t<section\t\tclass=\"sc_fs_faq sc_card    \"\n\t\t\t\t>\n\t\t\t\t<h2>What are the mistakes that people make when buying their first home?<\/h2>\t\t\t\t<div>\n\t\t\t\t\t\t<div class=\"sc_fs_faq__content\">\n\t\t\t\t\n\n<p>The common mistakes that people make when buying their first home are making a solid budget, starting to look for homes before getting their finances sorted, and ignoring extra costs like stamp duty and legal fees.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section\t\tclass=\"sc_fs_faq sc_card    \"\n\t\t\t\t>\n\t\t\t\t<h2>Why should I have pre-approval before house hunting?<\/h2>\t\t\t\t<div>\n\t\t\t\t\t\t<div class=\"sc_fs_faq__content\">\n\t\t\t\t\n\n<p>Getting pre-approval helps you know exactly what you can afford. This helps in setting a budget while house hunting and makes sellers take you seriously. It makes the process smoother and saves your time.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section\t\tclass=\"sc_fs_faq sc_card    \"\n\t\t\t\t>\n\t\t\t\t<h2>What are the extra costs apart from the down payment?<\/h2>\t\t\t\t<div>\n\t\t\t\t\t\t<div class=\"sc_fs_faq__content\">\n\t\t\t\t\n\n<p>The extra costs apart from the down payment are stamp duty, registration charges, home loan processing fees, insurance, moving costs, and sometimes a society maintenance deposit. These can add up to 7-10 % your home value. So, always consider these extra costs before buying a house.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section\t\tclass=\"sc_fs_faq sc_card    \"\n\t\t\t\t>\n\t\t\t\t<h2>Is a home inspection really necessary?<\/h2>\t\t\t\t<div>\n\t\t\t\t\t\t<div class=\"sc_fs_faq__content\">\n\t\t\t\t\n\n<p>100%. Even if a place looks great on the surface, there could be hidden problems that only a professional would spot\u2014things like leaky pipes, dodgy wiring, or structural cracks. Spending a bit on an inspection now can save you from big repair bills (and a lot of headaches) down the line.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\n<script type=\"application\/ld+json\">\n\t{\n\t\t\"@context\": \"https:\/\/schema.org\",\n\t\t\"@type\": \"FAQPage\",\n\t\t\"mainEntity\": [\n\t\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"What are the mistakes that people make when buying their first home?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"\n\n<p>The common mistakes that people make when buying their first home are making a solid budget, starting to look for homes before getting their finances sorted, and ignoring extra costs like stamp duty and legal fees.<\/p>\n\n\"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"Why should I have pre-approval before house hunting?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"\n\n<p>Getting pre-approval helps you know exactly what you can afford. This helps in setting a budget while house hunting and makes sellers take you seriously. It makes the process smoother and saves your time.<\/p>\n\n\"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"What are the extra costs apart from the down payment?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"\n\n<p>The extra costs apart from the down payment are stamp duty, registration charges, home loan processing fees, insurance, moving costs, and sometimes a society maintenance deposit. These can add up to 7-10 % your home value. So, always consider these extra costs before buying a house.<\/p>\n\n\"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"Is a home inspection really necessary?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"\n\n<p>100%. Even if a place looks great on the surface, there could be hidden problems that only a professional would spot\u2014things like leaky pipes, dodgy wiring, or structural cracks. Spending a bit on an inspection now can save you from big repair bills (and a lot of headaches) down the line.<\/p>\n\n\"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t\t\t\t]\n\t}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Are you thinking of purchasing your first home? As a first-time home buyer in India, it\u2019s natural to feel excited. However, have you thoroughly considered all the details before making this purchase? One moment, you\u2019re picturing your ideal living room, and the next, you find yourself stuck on the paperwork that seems perplexing.&nbsp; The truth [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":1082395,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"acf":[],"_links":{"self":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/1082394"}],"collection":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/users\/132"}],"replies":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/comments?post=1082394"}],"version-history":[{"count":3,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/1082394\/revisions"}],"predecessor-version":[{"id":1082405,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/1082394\/revisions\/1082405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/media\/1082395"}],"wp:attachment":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/media?parent=1082394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/categories?post=1082394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}