Home Loan Checklist: 10 Things to Check Before You Sign

A home loan can run for 20 years or more, so a small difference in terms becomes a large amount over time. Use this list before you accept any offer.

1. Rate type and benchmark

   Ask whether the rate is floating or fixed and what it is linked to. Most floating loans follow an external benchmark such as the repo rate. See fixed vs floating rates.

2. The spread

   The margin the lender adds on top of the benchmark is what you pay in the long run. Ask whether it can change after sanction.

3. Processing and other fees

   Look for processing fee, legal and valuation charges, administrative fees and GST. Ask for a written list.

4. Prepayment and foreclosure rules

   RBI rules generally bar prepayment charges on floating-rate loans to individual borrowers, but fixed-rate loans may carry charges. Check your sanction letter. Our prepayment guide shows how much you can save.

5. Loan-to-value (LTV)

   Lenders finance only a part of the property value; RBI caps LTV, and the cap is lower for larger loans. Plan for the down payment and registration costs.

6. Tenure and EMI

   A longer tenure lowers the EMI but raises total interest. Use the EMI calculator to compare 15, 20 and 25 years.

7. Insurance

   Property or loan insurance can be useful, but it should be your choice, not a condition tied silently to the loan.

8. Property documents

   Check the title chain, approved plan and, for an under-construction flat, the project’s RERA registration.

9. Disbursement stages

   For under-construction property, money is released in stages. Ask how pre-EMI interest works until possession.

10. Your own credit health

    A better score gets a lower rate. Review your report first: how to read it and fix errors.

Ready to compare? See current home loan options and home loan interest rates.

This article is for general information only and is not financial, legal or tax advice. Interest rates, fees and rules change, so confirm current terms with the lender or the regulator before you decide. Examples use illustrative figures. Last reviewed: October 2026.