First time looking for a new place to buy and live in? Moving up from renting?
When it comes to home ownership in Australia, it’s easy to get overwhelmed by all the options available when you’re ready to buy. You might even feel like you need help sorting through them.
Fortunately, there are plenty of resources out there to guide you along the way, including getting the home loan first time buyer like you can use to get your foot up the property ladder. Start with this guide for first home buyers where we outline the process in purchasing your first home.
Steps on how to buy your first home for Australian first home buyers
1. Talk to a trusted mortgage broker (that’s us!)
It is crucial to get buying a first home advice from a mortgage broker as they can help you find mortgages that suit your needs and budgets and guide you through the process of getting finance. It’s important to work with someone who has experience and knowledge of the industry so you don’t end up paying more than necessary. Finding the right mortgage lender can make the difference between success and failure.
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2. Get a pre-approval on your loan.
A pre-approval is a procedure that lets you know your borrowing power based on your personal information. Obtaining a preapproval is important as it puts you in a strong position to move ahead of other buyers and be auction ready with confidence. It also increases your chances of securing the property you want. Your mortgage broker can help you prepare the necessary paperwork and apply for a pre-approval with your chosen lender.
3. Go house hunting!
Upon pre-approval, you can start shopping around for your property. Make sure you do lots of research and inspec as many properties as you can. As you get more familiar with the market you will get a better understanding of property values.
[themify_button bgcolor=”blue” size=”large” link=”https://zepfinance.com.au/sitewp/wp-content/uploads/2016/05/ZEP-Finance-Property-Inspection-Checklist-A4NEW.pdf”]Download our property inspection checklist[/themify_button]
4. Contact your solicitor or conveyancer.
Enlist the services of a solicitor or conveyancer (they will be your legal representative during the whole purchase process). They will help you review the Contracts of Sale for the properties you are considering as well as organise the searches on the property to make sure everything is in order and arrange settlement for your chosen property.
5. Make an offer they can’t refuse.
You’ve found your property! Make an offer ensuring that all of the terms you require for the purchase are presented with the offer. Once you have signed the offer the sale is in progress. If the vendor accepts you will need to pay your deposit and you are now legally committed to the purchase.
Note: If you are intending to purchase at Auction, please talk to us and we will guide you through the next steps in the process as they are different than what is outlined here.
6. Have a pest and building inspection.
So your offer has been accepted! At this point we recommend that you have a pest and building inspection report done on the property to save you from future, potentially costly problems on the property.
[themify_button bgcolor=”blue” size=”large” link=”https://zepfinance.com.au/sitewp/wp-content/uploads/2016/05/ZEP-Finance-A4-Building-Pest-Inspections-OL.pdf”]Download our building and pest inspection fact sheet[/themify_button]
7. Get a full loan approval.
To do this, the lender will carry out a valuation on the property so you do not need to organise a valuation yourself. With a satisfactory valuation and all the other conditions on your pre-approval met, your lender will issue a full approval.
8. Arrange building and contents insurance.
This stage of the purchase process will be a good time to arrange insurance. Please ask us to get you a quote.
9. Sign your loan documents.
Now that your loan is fully approved, your lender will send you your Letter of Offer along with other loan documents. You need to sign these documents and return them to the lender. These documents are legal contracts between you and the lender so read them carefully. If you are unsure about anything, you can talk to your mortgage broker, solicitor or conveyancer.
10. Prepare for settlement.
Settlement is generally 30 days from when you signed the contract of sale. Note that the settlement periods do vary state to state. We will liaise with your legal representative and your lender to ensure settlement takes palace on the day specified.
11. Pop the cork!
It’s your settlement day — this means the house is officially yours and ready for occupancy. Pick up the keys to your new property and celebrate this huge life milestone!
Tips for first home buyers
Watch our founder Zain Peart share his expertise as a seasoned first home buyers mortgage broker through these useful tips on buying first house.
Read: Buying A First Home Tips from a Top Mortgage Broker
ZEP Finance is the first choice for first home buyers Australia
Australian first home buyers often face many challenges when buying their first property. A good mortgage broker can make sure you get the most out of your investment.
ZEP Finance specialises in first home mortgage. Being an established mortgage broker, we are familiar with the stress caused by home loan applications and the pitfalls many first-time home buyers face such as choosing the wrong type of loan or paying too high an interest rate.
Let us help you choose the right type of loan for your situation.
[themify_button bgcolor=”blue” size=”large” link=”https://zepfinance.com.au/contact-us/”]Talk to a mortgage broker Ballina[/themify_button]
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After studying business and finance at university, Zain initially expected to pursue a career in finance. However, his passion for property and the experience of buying his own home led him to mortgage broking. He began his mortgage brokering career in 2009 and founded ZEP Finance in 2010.
