How to Buy Your Dream Home: A 6-Step Plan From Budget to Keys

Last updated: Sept 2026

To buy your dream home without financial strain, work in a fixed order: budget, down payment, eligibility, property checks, loan sanction and registration. Skipping ahead leaves buyers short of cash at registration.

• Budget rule: this plan keeps the total Equated Monthly Instalment (EMI) within 45% of net monthly income
• Down payment: at least 20% on loans of Rs. 30 lakh to Rs. 75 lakh, under the Reserve Bank of India's 80% loan-to-value (LTV) cap
• Upfront costs: state stamp duty and registration, plus Goods and Services Tax (GST) of 1% or 5% on under-construction flats

• Property checks: registration under the Real Estate (Regulation and Development) Act (RERA), clear title and the land record before any token payment

  
  

Fix your budget and down payment before you visit a single property. Every later step, from the loan amount to registration, follows from those two figures.

Start from the EMI you can carry, not the price you like. This plan assumes total EMIs stay within 45% of net monthly income.

Assumptions: 8.50% p.a., 20 years, no other EMIs. The rate is illustrative, not a quote. Use the home loan EMI calculator to test your own figures.

Plan for at least 20% of the property value on a loan between Rs. 30 lakh and Rs. 75 lakh, plus state charges. The Reserve Bank of India set these loan-to-value limits in its circular of 8 October 2015.

Stamp duty and registration sit outside the property value used for the LTV calculation, so budget for them separately. Under-construction flats also carry GST, which the developer adds to your payment schedule.

A larger down payment lowers the EMI but drains your cash reserve. A longer tenure lowers the EMI but raises interest. On a Rs. 48 lakh loan at 8.50% per annum:

Check 4 things first: RERA registration, a clear title, the land record and the approvals. Before you buy your dream home, remember that a token payment often binds you before any of these are confirmed.

• For an under-construction project, confirm the RERA registration number on your state portal
• For any property, ask for the title documents and an encumbrance certificate
• Match the land record to the seller's claim, such as the Property Card certificate for urban Maharashtra
• For a ready flat, ask for the occupancy certificate

Six steps help you buy your dream home, from eligibility to keys, and the lender's checks follow your choice of property.

1. Check eligibility with your income, existing EMIs and credit score.
2. Apply with identity, income and bank documents.
3. Receive the sanction with the loan amount, rate and tenure.
4. Complete the lender's legal and technical verification of the property.
5. Pay stamp duty, register the sale and receive the disbursal.

6. Take possession and start EMIs.

   
   

You can check eligibility before you shortlist a property, which fixes your ceiling early.

Consider Rhea, a 33-year-old analyst in Pune with a household income of Rs. 1.2 lakh a month and a CIBIL Score of 748, buying a ready flat priced at Rs. 60 lakh.

Formula used: Upfront cash = price × 20% down payment + price × assumed stamp duty and registration rate.

Rhea needs Rs. 15.6 lakh in upfront cash, and her EMI stays under the 45% limit.

Bajaj Finance offers home loans with the following headline terms, subject to credit assessment.

Approval timelines can extend where property documents need clarification, and minimum income thresholds can differ by city. See home loan fees and charges before you finalise your budget.