Home loan before you buy: eligibility, pre-approval and the down payment
By Ambish Singh, Founder · Facts checked October 2026
In shortGet your loan eligibility and a pre-approval before you shortlist. RBI limits what a bank can lend as a share of the property value, so the down payment is not negotiable; what you can control is the loan tenure, the rate and the cushion you keep.
Why the loan comes first
Your budget is decided by what a bank will lend and what you can comfortably repay, not by the price you hope to pay. A pre-approval tells you the number, makes negotiations easier, and avoids losing a token amount because the loan fell through.
How much the bank will lend
Banks look at your income, existing EMIs, age, credit score and the property. Reserve Bank of India rules also cap the loan as a share of the property value: up to 90 percent for loans up to 30 lakh rupees, up to 80 percent for loans above 30 lakh and up to 75 lakh, and up to 75 percent above that. The rest is your down payment, and it excludes taxes and registration.
Keep your total EMI comfortable
A common rule of thumb is to keep all EMIs together below roughly 40 percent of your monthly take-home income. Stay well inside that if your income is variable or you have dependents.
Things to compare between banks
- Interest rate and whether it is linked to an external benchmark that resets.
- Processing fee, legal and valuation charges.
- Whether the bank is approved for the project, which makes the loan faster.
- Prepayment rules, and whether part-prepayment is free on a floating-rate loan.
- How and when the loan is released against an under-construction project.
Frequently asked questions
What credit score do I need for a home loan?
A score of around 750 or above generally gets the best terms. Lower scores can still be approved, usually at a higher rate. Check your score a few weeks before applying and correct any errors.
Is a pre-approval a guarantee of the loan?
No. It is an indication based on your documents and credit profile. The final sanction depends on the property's legal and valuation checks.
Can an NRI get a home loan in India?
Yes, banks lend to NRIs against Indian property, with documentation and income proof from abroad. Terms vary by bank.
Official sources
Check these yourself. They are the regulators' own sites, not ours.
- MahaRERA (Maharashtra Real Estate Regulatory Authority)Look up a project's registration and its promoter before you pay anything.
- Dubai Land DepartmentCheck broker licences and property services; Dubai's property regulator, RERA, is part of the Department.
Want a second opinion on your shortlist?
Message Ambish with your budget and area. You get a short list with prices, payment plans and possession dates side by side. No pressure to book.
Keep reading
This page is general information, not legal, tax or financial advice. Rates, thresholds and rules change, so confirm them with the relevant authority or a qualified professional before you decide.