How to Become a Homeowner in 7 Steps

Take advantage of record-low interests rates, current Government Initiatives and entry-level house prices to make your move into homeownership!

The real estate industry in Australia is experiencing drastic property price growth thanks to record-low interest rates, Government Initiatives and closed borders, which have allowed many buyers to save up some extra cash to put towards their home purchase. Regardless if you are a first home buyer, owner-occupier or investor, the process to getting a home can be made simple as it always starts with the initial enquiry.

1. Register Your Interest

Every homeownership journey starts with the initial enquiry. It is important to assess your current situation, before choosing a location or house, so you can address any limitations you may have. Understanding your wants and needs as a buyer can help you significantly as you navigate the beginning stages of applying for a home. This process might be overwhelming for some homebuyers, so QLD Property Group have created a Free Home Evaluation to help homebuyers receive an assessment on their current situation to see if homeownership is possible.

2. Get Qualified

There are two aspects of qualification for a home loan: qualifying for the loan itself and being eligible for Government Initiatives. To ‘get qualified’ means to get your situation assessed by a financial professional such as a banking institution, broker or other form of financial advisor. At QLD Property Group, our team are very familiar with the qualification process and have a panel of expert brokers who are experienced in efficiently handling and managing applications of all types. Once you receive the outcome to your financial assessment, you will have a better understanding of your purchase ability.

First Home Buyer Grants and Concessions: The State and Federal Governments offer its support for first home buyer loans through different Government-funded Grants and Concessions. First-time buyer Initiatives include the First Home Owners’ Grant, the First Home Loan Deposit Scheme, the New Home Guarantee and the Family Home Guarantee.

3. Pre-Approval

To be ‘pre-approved’ means the lender has agreed to lend you money to put towards your home purchase. Being pre-approved doesn’t mean the bank has formally approved your application, rather they have accepted your initial application for a home loan and are willing to see it through. Pre-approval is a positive sign and indicates that you are one step closer to getting a home loan. Once you’ve reached this stage, it’s time to start exploring your property options now that you have an estimate of your budget. 

4. Property Options

Now that you’re pre-approved and are on your way to securing a home loan, it’s time to start thinking about where you want to live and the type of home you want to live in. Here is your opportunity to make a smart property decision. You need to consider qualities in your home that might be useful if it were to become an investment property later down the track. At QLD Property Group, we think of a first home as a first investment. Your first home marks the start of your homeownership journey, and with special benefits and financial schemes available only to first home buyers, it’s your best opportunity to set yourself up for a long-term investment.

When planning for your first home, you must consider these three attributes: location, layout and lifestyle. Although these three attributes may seem simple, they have a large impact on capital growth for investment purposes.

5. Contract Signing

One of the most exciting moments as a first home buyer is signing the contract on your first home. Although it is an exciting time, it can be quite overwhelming as your journey to buying a home is becoming a reality. It is important that if you need help, to seek it from your solicitor or a legal advisor. If you buy an established home, you will only need to sign one contract, whereas if you are buying home and land, you will need to sign two contracts: one for the home and one for the land. When signing your contract/s, you must be diligent. Make sure that all of the information is correct, looking for spelling mistakes and any errors in your name, the sale price and the address of purchase. 

6. Unconditional Approval

Unconditional Approval means that your Lender has thoroughly assessed the documents you have provided, they’ve made the final decision and are willing to lend you the money based on your situation. When you become Unconditional, you are fully approved with no conditions (and no unresolved issues). To learn more about Unconditional Approval, click here.

7. Settlement

It’s official! All the hard work has been done and you are now a homeowner or landowner depending on what you’ve purchased. For settlement, your solicitor discusses with your lender and the seller’s representatives to exchange your loan documents. During this time, it is important that you as the buyer are prepared to answer any questions your Solicitor might have when called upon. If there’s one thing a buyer should feel on settlement day, it’s accomplishment! You’ve jumped all the hurdles of applying for your home loan and now get to experience life as your own landlord!

Brisbane first home buyers are now taking less time to save for a deposit, with closed borders, Government Initiatives and a softening of entry-level house prices launching locals onto the property ladder faster than a year ago. With international travel and interstate holidaying off the cards for many Australians, there is a great opportunity for people to grow their savings accounts and start planning long-term. If you are interested in taking the first step, click here to receive a Free Home Evaluation.

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