Understanding the Home Buying Journey
Buying your first home is one of the biggest financial decisions you'll ever make. For first home buyers in Riverstone, understanding the timeline can help you prepare properly and avoid surprises along the way. The process typically takes anywhere from 6 to 12 months, depending on your circumstances, but having a clear roadmap makes the journey much more manageable.
Let's break down what you need to know about the first home buying timeline and when you should be doing what.
Months 1-3: Planning and Preparation
The first few months are all about getting your finances in order and understanding what you can afford.
Build Your First Home Buyer Budget
Start by looking at your income, expenses, and savings. Your first home buyer budget should account for:
- Your deposit (typically 5% to 20% of the property price)
- Lenders Mortgage Insurance (LMI) if you're borrowing more than 80% of the property value
- First home buyer stamp duty concessions you might be eligible for
- Conveyancing fees, building inspections, and moving costs
Research Home Loan Options
This is when you should start learning about different home loan options available to you. Consider whether a variable interest rate or fixed interest rate suits your situation. Look into features like offset account facilities and redraw options that could save you money over time.
Check Your First Home Buyer Eligibility
Investigate which government schemes you qualify for:
- First Home Owner Grants (FHOG) - Currently available for new builds in NSW
- First Home Loan Deposit Scheme - Allows you to purchase with a 5% deposit without paying LMI
- Regional First Home Buyer Guarantee - Specifically for properties in regional areas
- First Home Super Saver Scheme - Helps you save faster using your super fund
Many Riverstone residents may qualify for various first home buyer grants and concessions, so it's worth investigating all your options.
Months 3-4: Getting Pre-Approval
Once you've done your research, it's time to apply for a home loan and get pre-approval.
Prepare Your First Home Buyer Checklist
Before you start your first home loan application, gather:
- Proof of income (payslips, tax returns)
- Bank statements from the last 3-6 months
- Identification documents
- Details of any existing debts or liabilities
- Evidence of your savings, including any gift deposit from family
If you're looking at low deposit options like a 5% deposit or 10% deposit, you'll need to show a strong savings history.
Ready to chat to one of our team?
Book a chat with a Mortgage Broker at KM Financial Service today.
Submit Your Home Loan Application
Working with a mortgage broker in Riverstone can streamline this process significantly. They can help you compare interest rate discounts from different lenders and find the most suitable first home loan for your situation.
Pre-approval typically takes 2-5 business days and is valid for 3-6 months, giving you confidence when you start house hunting.
Months 4-6: Property Search and Making an Offer
With pre-approval in hand, you can start seriously looking at properties.
Know What You Can Afford
Your pre-approval amount isn't necessarily what you should spend. Consider:
- Ongoing repayments at your current interest rate
- What happens if the interest rate increases
- Your lifestyle and other financial goals
- Future plans like starting a family or career changes
Make an Offer
When you find the right property, your real estate agent will guide you through making an offer. This might be through private sale negotiation or auction. Having your finance pre-approved shows sellers you're a serious buyer.
Months 6-7: Formal Approval and Building Inspections
Once your offer is accepted, you'll need to:
Complete Your Formal Home Loan Application
Your lender will require a property valuation and may need updated financial documents. This is when your loan moves from pre-approval to formal approval.
Arrange Inspections
Building and pest inspections are crucial, especially for older properties. Budget around $400-$800 for these services in the Riverstone area.
Review the Contract
Your conveyancer or solicitor will review the contract of sale and explain any conditions or concerns. This is also when you'll pay your deposit, usually 10% of the purchase price.
Months 7-8: Settlement Preparation
The final stretch involves:
Final Loan Approval
Your lender will issue formal approval and prepare settlement documents. This is when you'll need to arrange insurance for your new property.
Organise Your Finances
Ensure you have funds ready for:
- Settlement day costs
- Moving expenses
- Immediate repairs or renovations
- Connection of utilities
Final Inspections
Conduct a pre-settlement inspection to ensure the property is in the agreed condition.
Settlement Day and Beyond
Settlement is when ownership officially transfers to you. Your conveyancer will handle the legal paperwork, and you'll receive the keys to your new home!
After settlement, remember to:
- Set up regular loan repayments
- Review your home loan annually to ensure it still meets your needs
- Consider making extra repayments when possible
- Keep track of interest rate changes if you have a variable interest rate
Making Your Timeline Work for You
Every first home buyer's journey is different. Some people move through the process faster, while others need more time to save or find the right property. What matters is that you're prepared and informed at each stage.
If you're feeling overwhelmed by the process, remember that you don't have to do it alone. Professional guidance can help you understand your options, from accessing first home buyer stamp duty concessions to choosing between different loan features.
The Riverstone property market offers opportunities for first home buyers, especially with various government schemes designed to help you get into the market sooner. Whether you're considering a 5% deposit through the First Home Loan Deposit Scheme or saving for a larger deposit to avoid LMI, having a clear timeline helps you stay focused on your goal.
Call one of our team or book an appointment at a time that works for you. At KM Financial Service, we're here to guide Riverstone first home buyers through every step of the journey, helping you understand your options and find the right first home loan for your situation.
