Buying your first home is one of the most exciting—and anxiety-inducing—milestones in adult life. In Nepal’s property market, the process involves government offices, legal documentation, financial institutions, and negotiations that can feel overwhelming for the uninitiated. This 20-point checklist is designed to walk first-time homebuyers through every stage of the process, from initial preparation to final ownership, so nothing important gets overlooked.
Before You Start
- Define your must-haves vs. nice-to-haves. Before looking at a single property, write down your non-negotiables (location, minimum bedrooms, parking) and your preferences. This prevents you from falling in love with a property that does not actually meet your needs.
- Get clear on your total budget. Include not just the purchase price but registration fees (typically 4–6% of assessed value), renovation costs, moving costs, and a 5% emergency reserve. Many first-time buyers run out of cash because they only budgeted for the purchase price.
- Check your credit and bank history. Banks review 6–12 months of bank statements. Ensure your account shows regular income credits and no irregular large withdrawals that need explaining.
Financial Checklist
- Get a home loan pre-assessment. Before you start serious property searching, approach 2–3 banks for a preliminary loan eligibility assessment. Knowing your exact borrowing capacity defines your realistic price range.
- Save at least 35–40% of your target price as a down payment. Nepal banks typically lend 60–70% LTV. Factor in that registration fees come from your own funds, not the loan.
- Gather all income documentation. Salary slips (6 months), bank statements (12 months), IT returns (2 years for self-employed), PAN card, and citizenship certificate. Have these ready before property searching so you can move fast when you find the right property.
- Understand your total monthly obligation. Your home loan EMI should ideally not exceed 40–45% of your net monthly income. Higher ratios leave insufficient buffer for life’s unexpected costs.
Location Checklist
- Visit the area at different times of day. A neighbourhood that feels peaceful on a Saturday morning may have a very different character during weekday rush hours or late evenings.
- Check water supply reliability. Ask current residents or the building management about daily water availability and storage capacity. This is one of Kathmandu’s most common post-purchase complaints.
- Assess road access in all seasons. Some areas flood during monsoon; some access roads become impassable. Visit during or shortly after rain to understand the true all-season situation.
- Research future development plans. Municipal development plans can significantly impact an area’s future value and livability. A local Basobaas agent can advise on planned infrastructure in your target area.
Legal Checklist
- Verify the Lalpurja at the Land Revenue Office. In person. Always. Never skip this step.
- Conduct an encumbrance search. Confirm no loans or legal claims are registered against the property.
- Confirm all land taxes are cleared. Get the official tax clearance certificate from the municipality.
- Verify the seller’s legal right to sell. Especially important in family-owned or inherited property where joint ownership may exist.
- Check zone and land use classification. Confirm the land is zoned for your intended use (residential, etc.) at the municipality.
- Review (or hire a lawyer to review) the Bainapatra. The preliminary sale agreement is legally binding. Understand every clause before signing.
Inspection Checklist
- Test all plumbing and electrical fixtures during the viewing. Run all taps, flush toilets, test switches and sockets. Do not assume everything works.
- Check for structural cracks, water stains, and damp. These can indicate serious structural issues or chronic water ingress problems.
Post-Purchase Checklist
- Store your new Lalpurja safely. The original document is irreplaceable. Keep it in a secure, fireproof location—ideally a bank safe deposit box. Take a notarised copy for daily reference.
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