Do you know the home buying timeline for first home buyers?

Understanding the Journey to Home Ownership

Buying your first home is an exciting milestone, but it can feel overwhelming without a clear understanding of the process. For first home buyers in Laverton, knowing what to expect at each stage helps you stay organised and confident throughout your home buying journey.

The timeline from initial planning to receiving your keys typically spans several months. While every situation differs, understanding the standard process allows you to set realistic expectations and prepare accordingly.

Step 1: Assess Your Financial Position (1-3 months)

Before you start searching for properties, you need to understand your financial capacity. This initial stage involves:

• Reviewing your savings and determining your first home buyer budget
• Checking your credit score and addressing any issues
• Calculating how much you can borrow based on your income and expenses
• Researching first home owner grants (FHOG) and first home buyer stamp duty concessions available in Victoria
• Understanding low deposit options including the First Home Loan Deposit Scheme and Regional first home buyer Guarantee

Many first home buyers in Laverton can purchase with a 5% deposit or 10% deposit, particularly when accessing government schemes. Some lenders also accept a gift deposit from family members.

Consider exploring the first home super saver scheme, which allows you to save for your deposit through voluntary superannuation contributions with potential tax benefits.

Step 2: Get Pre-Approval (1-2 weeks)

Once you understand your financial position, the next step is to apply for a home loan pre-approval. This involves:

• Gathering necessary documentation including payslips, tax returns, and bank statements
• Submitting a first home loan application to lenders
• Comparing Home Loan options including interest rate types
• Understanding loan features like offset account and redraw facilities

Getting loan pre-approval strengthens your position when making offers on properties. It shows sellers you're a serious buyer and helps you understand exactly what you can afford.

During this stage, you'll need to decide between a fixed interest rate, variable interest rate, or a combination of both. Each option has advantages depending on your circumstances and risk tolerance. Some lenders offer interest rate discounts for first home buyers.

Step 3: Property Search and Inspection (4-12 weeks)

With pre-approval secured, you can confidently begin searching for your first home. This phase includes:

• Attending open homes and private inspections
• Researching suburbs and comparing property values
• Arranging building and pest inspections on properties of interest
• Understanding contract terms and conditions

The length of this stage varies significantly depending on market conditions, your requirements, and property availability in Laverton and surrounding areas.

Step 4: Make an Offer and Contract Exchange (1-2 weeks)

When you find the right property, you'll need to:

• Submit a formal offer or bid at auction
• Negotiate terms with the vendor
• Review the contract of sale with a conveyancer or solicitor
• Pay a holding deposit (typically 0.25% of the purchase price)
• Exchange contracts and pay the balance of the deposit (usually bringing the total to 10%)

Your conveyancer will conduct necessary searches and ensure the contract protects your interests. This is also when you'll need to consider whether Lenders Mortgage Insurance (LMI) applies to your purchase. LMI is typically required when borrowing more than 80% of the property value, though some government schemes for first home buyers can help you avoid this cost.

Step 5: Formal Home Loan Application (2-4 weeks)

After contracts are exchanged, you'll submit your formal first home loan application to your chosen lender. This process involves:

• Providing the contract of sale to your lender
• Submitting any additional documentation requested
• Lender conducting a property valuation
• Assessment of first home buyer eligibility for any applicable schemes
• Finalising loan terms and conditions

Your mortgage broker will manage communication between you and the lender, ensuring the application progresses smoothly.

Step 6: Settlement Preparation (30-90 days)

The settlement period is specified in your contract, typically ranging from 30 to 90 days. During this time:

• Your lender prepares final loan documents
• You arrange home and contents insurance
• Your conveyancer coordinates with the vendor's solicitor
• Final property inspections are conducted
• You confirm settlement figures and arrange final payment

This is an excellent time to start planning your move and arranging utilities for your new home.

Step 7: Settlement Day

Settlement is when ownership legally transfers to you. On this day:

• Your lender releases funds to the vendor
• Your conveyancer registers the property transfer
• You receive the keys to your new home
• Stamp duty and other government charges are paid

For first home buyers in Victoria, various first home buyer grants and concessions can significantly reduce these costs.

Creating Your First Home Buyer Checklist

Staying organised throughout this process is crucial. Your first home buyer checklist should include:

• Financial documents and statements
• Pre-approval letter
• Property inspection reports
• Insurance documents
• Settlement statement
• Contact details for your mortgage broker, conveyancer, and real estate agent

Understanding Your Home Loan Options in Laverton

First home buyers in Laverton have access to various Home Loan options designed to make buying your first home more achievable. These include:

• Government guarantee schemes that reduce or eliminate LMI
• Low deposit options requiring as little as 5% deposit
• Fixed and variable interest rate products
• Loans with offset account facilities to reduce interest costs
• Products with redraw features for accessing extra repayments

Understanding these options and how they apply to your situation is essential when you apply for a home loan.

Working with Simple Lending

The timeline from planning to settlement typically spans 4-9 months for most first home buyers, though this can vary. Having an experienced mortgage broker for first home buyers in Laverton can streamline the process and help you avoid common pitfalls.

Simple Lending specialises in helping first home buyers access the right loan products and government schemes. We take time to understand your situation, explain your options clearly, and support you throughout the entire home buying journey.

Call one of our team or book an appointment at a time that works for you. Let's discuss your home buying timeline and create a plan tailored to your goals.