Step-By-Step Guide To Buying A House

So, you’re thinking about buying a house?

Fortunately, you’ve landed on the right page. Whether you’ve been just scrolling though listings or are actually ready for the purchase, buying a house is a major milestone.

And you need a concrete plan to turn your dreams into reality. Let’s walk you through the six most essential steps you need to take.

Step 1 – Get your deposit ready

Before you start swiping through listings, it’s time to get your finances working for you.

• Create a budget to see what you can realistically save each month.

• Research property prices in the areas you’re eyeing, this helps set your deposit target.

Pro tip: Aim to save at least 20% of the property price plus a buffer for extras like stamp duty and legal fees. The bigger the deposit, the smaller your mortgage and monthly repayments.

Need a leg up? Check out our tips to save faster for a house deposit.

Step 2 – Know How Much You Can Borrow

Knowing how much you can borrow helps you plan your finances accordingly. Lenders calculate your borrowing power by factoring different things such as:

• Debt To Income (DTI) ratio

• Your Credit Score

It is also a good idea to get a rough idea of the current property market. You should also look out for first home buyers grants (if it is your first property) and other government schemes to see if you can get any government help.

In addition, you can use our mortgage deposit and repayment calculators to discover what your deposit and repayment would cost.

Step 3 – Get The Right Mortgage

Figuring out the right mortgage can be overwhelming. A qualified mortgage broker helps cut through the confusion. They match you with the right lender based on your financial situation and take care of the paperwork, so you don’t have to stress.

Brokers also negotiate with banks on your behalf, helping you lock in a better deal.

There are different types of home loans in Australia: fixed, variable, and interest-only, each of which come with its pros and cons.

Your broker helps you weigh up:

• Which option aligns with your long-term goals

• How comfortable you are with fluctuating repayments

• Flexibility, fees, and features like offset/redraw accounts

The right broker won’t just find you a loan, they’ll also find the loan that fits you. Thinking of buying a house? Talk to our experts and get the home loan that works for you.

Step 4 – Find The Right House

Now comes the fun part – browsing houses, and walking through inspections. At this point of your homeownership journey, it is essential to be strategic and let go of the emotional.

Here are some of the questions you need to ask yourself in this step:

• Why am I buying? (e.g. growing a family, investing, settling down)

• What are my non-negotiables? (location, size, public transport)

• What can I live without for now? (designer kitchen, pool)

And always stay within budget. Pre-approved for $650k? Avoid falling in love with a $750k home. Consider nearby suburbs or up-and-coming areas to stretch your dollars.

Once you’ve chosen your home loan type, the next step in buying a house is getting pre-approval. Also known as conditional approval, it means a lender has reviewed your finances and agrees, in principle, to lend you a certain amount.

While not final, it gives you a strong sense of your borrowing power, and makes your offers more attractive to sellers.With pre-approval sorted, it’s time to partner with a real estate agent.

A great agent knows the local market inside out school zones, commute times, recent sales, and helps you find homes that align with your budget and lifestyle. Don’t hesitate to interview a few agents to find one who listens, communicates well, and understands your needs.

When house hunting, prioritise location, property condition, and whether you’re open to renovations. Stay focused on what matters most to you.

Online listings are helpful, but a good agent can unlock off-market opportunities. They’ll guide you through inspections, shortlist properties, and ultimately help you find a place that feels like home.

Step 5 – Negotiate

Found the house you want to buy? Time to make an offer.

Negotiations begin with your solicitor and the seller’s lawyer involved. Negotiations normally happen over price, repairs, and settlement terms. You need to do your research, figure out your budget, and then be prepared to compromise as well.

Next comes the house inspection. Hire a licensed inspector to check for major issues like foundation cracks, roof leaks, faulty wiring, and pest problems. If serious concerns arise, you may renegotiate with the seller.

Then comes the property valuation. A certified appraiser assesses the home’s market value based on location, size, and condition. If the valuation is lower than expected, you might need to renegotiate or cover the difference since lenders won’t loan more than the property’s worth.

Step 6 – Settle In

Once valuation and inspection boxes are ticked, your lender will finalise your mortgage. You’ll lock in your rate and submit any final documents. Upon approval, you’re ready for settlement.

Settlement is the legal transfer of ownership. Your solicitor coordinates with the lender and seller, handles taxes and paperwork, and ensures funds are transferred. On settlement day, you get the keys, and the home is officially yours.

Congratulations, you just bought a house!

Move Into Your New House!

So, there you have it – a new house to move into! Congratulations if you followed this guide and bought yourself a house.

If you haven’t, and you are still unsure about your mortgage qualification, give us a call on 1300 889 743 or enquire online for free.