Buying a house is one of the most financial and emotional decisions for a person.
Buying a first home is exciting and overwhelming at the same time. It is a huge lifelong investment for a lot of people. A house is more than walls. It is a place where you live with your loved ones, create memories and can rent out or sell the house in the times of emergency. This step-by-step guide breakdown helps guide you from searching for a home to moving into your first house. The tips make you feel confident and prepared.
Why is buying a house a smart investment?
Instead of paying rent for your whole life, if you invest in a house, that would be an asset. It makes your life more comfortable by providing stability and more control over your living space. For first-time home buyers, it’s a first milestone on the path to long‑term financial security. Here is a step-by-step guide for first-time buyers.
The steps for buying house for first time are given below :
- Determine Your Budget
- Set Your Priorities
- Research the Market
- Shortlist Properties
- Verify Ownership and Legal Documents
- Negotiate the Price
- Secure a Home Loan
- Sign an Agreement
- Perform Due Diligence
- Finalize Payment
- Registration of Property
- Obtain Possession
- Move In and Settle
- Pay Taxes and Maintain Property
Step 1: Determine Your Budget
Before exploring the house, you need to know your budget.
Location-based price variation:
Calculate the budget: Make sure you can pay the mortgage payment, property taxes, utilities, and maintenance from your income.
· Down payment: In Nepal, banks offer housing loans with 70-80% financing, depending upon location and market value of the property.
· Emergency fund: Any emergency can occur in future. So, reserve 3–6 months of living expenses.
Step 2: Understand the home loan process. Apply for the loan
Once you finalise your budget and location for your house. If you don’t have enough budget and you are looking for a loan, then it’s better to understand the loan process and banks.
· Banks: Popular banks like Nabil bank, Global IME bank, NIC Asia bank offer home loans.
· Documents: You need documents while applying for the loan. It is better to know about the earlier and start to prepare instead of rushing at the last moment. You need different documents while applying for the loan.
1. Personal documents:
· Copy of citizenship
· Passport-sized photographs
· Marriage certificate (if applying as a couple)
2. Financial Proof:
· Salary certificate (if employed)
· Tax clearance certificate or business registration (if self-employed) Last 6 months bank statements
· Loan clearance letter (if you’ve finished past loans)
· Income proof from other sources (like rent or side business)
3. Property documents:
· Land ownership certificate (lalpurja)
· Blueprint (Naksha) approval from municipality (for construction loans)
Step 3: Find the right Real Estate Agent
A good real estate agent guides you through the process of buying your first house. While finding the real estate agent you should look for:
· Experience working with first‑time buyers.
· Local market knowledge.
· Clear communication.
· Registered agency
· Handles paperwork
· Understands legal process
· Transparent fees
Step 4: Define your needs and wants
Understanding and defining your needs and wants will help the agent while showing you the house. It will save time.
- Needs: Needs are the things that you can’t live without such as a particular layout, location or essential characteristics that would be difficult to change after you move in.
- Wants: Wants are attributes that could be achieved after you move in. Make sure there is a space and environment for changes.
Step 5: Start official research
Once you are clear about your wants and needs and find the real estate agent the official research started. Follow these few tips while searching for a house.
· Visit as much as house you can
· Talk with the locals
· Learn about the neighborhood
Step 6: Make an Offer & Negotiate
When you find the perfect home for you:
· Know the current market price of the houses.
· Match your price to market condition
Step 7: Apply for loan
The real estate agent guides you through the loan process but if you started the process earlier it would be helpful. Always go with the bank with low interest.
Step 8: Home Inspection
Before shifting in a new house, make sure to check every aspect. Hire a licensed inspector to check plumbing, structure, roof, electrical. Repair if there is any issue.
Tips for First-Time House buyers
· Stay within your budget
· Keep an emergency fund
· Ask questions properly
· Check everything before taking a decision
· Get homeowner’s insurance early
· Make sure to do inspection
· Read the documents carefully