7 steps to buying your first home

So you’ve decided to buy your first home but don’t know where to even start? Don’t worry, you don’t have to throw yourself in the deep-end to get to where you want to be. Here’s our step-by-step guide to help you make this a relatively inexpensive and low-stakes process in the cut-throat property market. 

Step 1: Determine your budget

It’s time to do the maths behind your day-to-day expenses and income. Dig into how much you (and your spouse if applicable) earn every month and where you’re sending your hard-earned dosh. This includes non-negotiables like bills, insurance, projected rent, supermarket essentials, public transport or petrol costs...Subtract the expenses from the total income and the number that you have is roughly what you can afford to repay each month on a loan. 

Hot tip #1: Expect the unexpected. Start a buffer fund for heaps of expenses involved down the road. That way, you won’t have to dip into your housing deposit later on to pay for unexpected costs. 

Step 2: How much can you borrow

Now that you know how much you can devote to mortgage repayments, find out how much you can borrow by bringing in extra help. You can enlist a mortgage broker to give you a range of options, help you work out the best option for your situation and calculate the costs you will face. You can save a lot of money on the life of your loan if you find a lender that is 0.5 – 1% less than everyone else. 

You’ll need:

• Proof of income such as pay slips or recent tax returns
• Proof of your savings history
• And other documents that may be required by specific lenders

Hot tip #2: We recommend building a squad of experts to help you get through the process as smoothly as possible. It could include: a financial coach, a mortgage broker, a conveyancer, a real estate agent and a property solicitor. 

Step 3: Get approval

Having found the best possible deal, it’s time to apply for a home loan and get approval. It’s likely you will be issued with either a ‘home loan guarantee certificate’ or a ‘pre-approval certificate’. What does that mean? It means subject to a few conditions, your home loan either has been or will be approved when you find the property you want to purchase. These loan approvals are only valid for around 6 months but sometimes up to 12 months. If it expires, contact your broker and see if it can be extended or if you have to reapply. 

Step 4: Find your home

Once you’ve designed a budget and got your pre-approval, it’s time to get a clear p