Home Loan Tips for First-Time Buyers: What You Should Know in 2025

📍 Introduction

Buying your first home is a major milestone—and probably the biggest investment of your life. But before you get the keys, there’s a critical step that most first-time buyers find confusing: home loans.

At Empire Realty, we don’t just build properties—we help you understand the process. This blog will guide you through essential home loan tips every first-time buyer should know in 2025.

💡 1. Know Your Loan Eligibility Before You Start

Banks consider several factors:

• Your monthly income
• Existing liabilities (like EMIs or credit cards)
• Your credit score (ideally above 750)
• Stability of your job or business

👉 Tip: Use online loan eligibility calculators or consult your bank to get a realistic budget before shortlisting properties.

💸 2. Compare Interest Rates & Loan Types

Interest rates may seem small, but even a 0.5% difference can save you lakhs over 20 years.

• Fixed Rate: Same interest for the entire loan term
• Floating Rate: Varies with market changes (often lower initially)

👉 Tip: In 2025, floating rates are more popular due to market flexibility—ask your lender for switching options.

🧾 3. Understand the Loan-to-Value (LTV) Ratio

Banks usually finance 75–90% of the property’s cost. You’ll need to pay the remaining amount—called the down payment—from your own funds.

👉 Example: For a ₹60 lakh property, you may get up to ₹50–54 lakh in a loan; the rest must be paid upfront.

🧠 4. Don’t Forget About Hidden Charges

In addition to the principal and interest, banks may charge:

• Processing fee (usually 0.5%–1%)
• Legal/valuation charges
• Insurance fees
• Prepayment or foreclosure penalties (ask about them!)

👉 Tip: Ask your lender for a complete cost breakdown before signing.

🗂️ 5. Keep All Documents Ready

Here’s what you’ll generally need:

• KYC (PAN, Aadhaar)
• 6 months’ salary slips or IT returns
• Employment proof
• Bank statements
• Property documents

👉 Tip: If you’re buying a property from Empire Realty, we assist buyers with documentation coordination.

🛡️ 6. Get Pre-Approved (Optional but Useful)

Getting pre-approved gives you a clear budget and makes you a more serious buyer in the eyes of sellers. It also speeds up the final approval process.

🏦 7. Choose the Right Tenure

Longer tenure = lower EMI, but more total interest.
Shorter tenure = higher EMI, but less interest overall.

👉 Example: A ₹50 lakh loan at 8.5% interest:

• 20 years = ₹43,000 EMI approx
• 10 years = ₹62,000 EMI approx

🏁 Final Thoughts

Taking a home loan is a smart step—but only when you plan it right. At Empire Realty, our team doesn’t just help you choose the right property—we guide you through the home loan journey with trusted bank partnerships, valuation support, and document coordination.

📞 Need Help with a Home Loan?

We’re here to assist you—from property selection to loan paperwork.

📌 Visit Us: 1310, Fenkin9, Nr. Satkar Grande Hotel, Wagle Estate, Thane West – 400604
📩 Email: marketing@empirerealty.org.in
📞 Phone: +91 9167685570
🌐 Website: empirerealty.org.in