Kalgoorlie 
Is it time to make the leap and buy your first home?
Buying your first home is a big step, and there is a lot to do to make it happen.
From borrowing money to signing contracts, if you know what’s coming next you’ll find yourself less stressed by the process.
Generally speaking, here are seven steps to buy a home:
- Work with a broker: Unless you have millions of dollars in the bank, you will need to borrow money to make a purchase.
The first thing to do is to connect with a mortgage broker to work out your budget and goals. Contact your broker early in the process and they will help you figure out how much you can borrow and what you can get for that amount of money.
During this time, do some research about the properties that are available where you want to buy. Reach out to a few real estate agents to let them know you’re interested and explain what you have in mind. It’s too early to start putting in offers but it will help to build some relationships.
- Sort out your finances: The amount you borrow will depend on how much you earn, how much you owe and how much you spend each month, plus the down payment you have.
If you already have a deposit, that’s a good start; otherwise, it’s time to start saving. In the few months leading up to applying for a loan, eradicate or consolidate your debts and spend as little as possible. The better your financial standing at this stage, the higher your chance of loan approval.
- Documents: There is a lot of paperwork involved in buying a house. Now that your finances are in order, the next step to buy a home is to get help from your broker to gather all the documentation you need to apply for a loan. This includes bank statements, payslips/proof of income and details about any other assets you have. You will also need ID and proof of residency in Australia.
You might also be eligible for grants or concessions as a first home buyer. Ask your broker about any possible opportunities to cut your costs. Take these documents and head to your chosen lender to get pre-approval; which means the bank will give you conditional approval to borrow.
- Shopping: With pre-approval out of the way, it’s time to start shopping. Shop around for houses or apartments that suit your needs. Always keep your budget in mind and listen to your agent’s advice. Once you find the right property, make sure to have all the proper inspections carried out before you make an offer.
Your pre-approval is conditional and may expire within a few months. Keep this in mind if you’re struggling to find the right property.
- Finalise approval: Once your offer has been accepted, leave it in your broker’s hands to talk to your lender and finalise your loan. While your broker is completing your loan, transfer your deposit over to the real estate agent’s holding account so they can pass it on to the seller.
- Settlement: Settlement is the process that sees the transfer of ownership from the previous owner to you. You will need to work with a solicitor/conveyancer; a legal professional who will handle the legal details. The process can take four to six weeks (or even longer if you have negotiated an extended settlement), so be prepared for a wait.
- Move into your new home: Grab the keys from the agent and make yourself at home. Congratulations on buying your first property.
Are you ready to buy your first home? Reach out to Professionals Platinum for help to find a property within your budget.
