Things to consider before buying Home or taking Home loan

Everyone wants their own house. So people purchase the House.
Generally people purchase a house at young age and end up paying the EMI's. In most of the cases when you get a job you 
are almost 22 (at graduation level). Then you work for 2-3 years and then you decide to buy your own home since there is 
lot of tax cutting in your salary and in near future you will get married and need a home for showing ;) and for living both. 

You some how manage the down payment and after lot of searching you finally settle on something. Most of the people take 
loan for amount other than your down payment.

If you are taking a under construction Home

1. Home loan will benefit in Income Tax only after you get the possession of you home. You will need completion certificate from Builder.
 you will get this only when your construction is complete. Bank will not disburse the complete loan amount until the 
construction is completed. Bank disburses loan amount step by step as the construction gets completed.
2. If you choose to pay full EMI from the beginning it is good as your principal amount will get reduced and 
you will be charged with less interest. This can reduce your loan tenure by 1-2 years.
3. According to govt. Income Tax laws if you are claiming home loan for tax benefit then you cannot claim HRA. 
Only in certain cases it is allowed. 
   a. If the home is in other city that you are residing.
   b. If it is more than 35 km from your work place.
   c. other some reasons which are not useful for general people.
4.In case of under construction homes, Income Tax law says you can claim the loan interest and Principal amounts 
that you paid before the completion of home, after it gets complete and in 5 installments of 20% each for first 5 years.
This is not useful as when full loan amount gets disbursed your slabs will get full without even considering this 20%. 
As the houses have become costly these days you may end up taking loan of 25-30 lakhs minimum for which the 
interest is around 3-3.5lakhs per year in the starting years.
So you will not get benefit of any tax over this.