The Home Buying Process: A Step-by-Step Guide For First Home Buyers

Buying your first home is exciting, but it can also feel overwhelming, especially when you're not sure what to expect.

At Nest Mortgage Solutions, we guide first home buyers through this process every day. Here's a simple breakdown of the key steps involved, so you can move forward with clarity and confidence.

Step 1: Work Out What You Can Afford

Before you start browsing real estate websites, it's important to get a clear idea of your borrowing power and what kind of deposit you'll need.

This depends on:

• Your income and expenses

• Existing debts

• The amount you've saved

• Whether you're eligible for any government schemes or grants

A mortgage broker can help you calculate this and give you realistic boundaries to work within.

Step 2: Get Pre-Approval

Pre-approval is when a lender agrees in principle to lend you a certain amount, based on your financial position.

It’s not a full loan approval, but it shows sellers and agents that you’re serious and ready to move forward. It also helps narrow your search to properties within your budget.

Step 3: Start the House Hunt

This is where things get exciting: open homes, inspections, and exploring different neighbourhoods.

Things to consider:

• How long you plan to stay

• Proximity to work, family or lifestyle needs

• Potential for growth in the area

• Overall condition of the property

Keep your pre-approval in mind and avoid falling in love with homes outside your range.

Step 4: Make an Offer

Once you find a home you like, you can make an offer through the real estate agent. If your offer is accepted, you’ll sign a contract and pay a holding deposit (usually a small portion of the purchase price).

The contract will usually include a cooling-off period or a subject to finance clause depending on the state you're in.

Step 5: Get a Building and Pest Inspection

This is a crucial step before finalising the contract. A licensed inspector will check for any structural or pest-related issues so you can make an informed decision.

If any problems come up, you may have the option to renegotiate the price or walk away.

Step 6: Finalise Your Loan Approval

Once your offer is accepted, we submit it for full approval - we don't wait for the inspections. 

Once the valuation inspection has been completed by the bank, and the bank assessor has reviewed the application, they will provide unconditional approval if everything checks out.

Step 7: Sign the Loan Documents and Contract

Your solicitor or conveyancer will review the contract with you before you sign. The final deposit is usually paid once the finance and build and pest clauses expire and your conveyancer says you're good to go. 

This is when the property is taken off the market and legally becomes yours, subject to settlement.

Step 8: Settlement

Settlement is the final stage where the property officially transfers to your name. It usually happens 4 to 6 weeks after the contracts are signed.

You will also pay any additional funds that may be required. Your solicitor will confirm the exact amount of additional funds a couple of days before settlement. Once your mortgage broker has checked these figures with the lender and solicitors, they will liaise with you where to move the funds. 

On settlement day:

• Your lender transfers the funds

• The property title is transferred to your name

• You get the keys to your new home

Congratulations, you’re now a homeowner.

Final Thoughts

The process might feel complex at first, but you don’t have to go through it alone. A good mortgage broker, solicitor, and support team will make sure you understand each step and feel confident along the way.

At Nest Mortgage Solutions, we’re here to guide you through the finance side of the home buying journey: from understanding your borrowing power to getting your loan approved and settled.