Buying First Home Made Easy: A Step-by-Step Roadmap

Buying your first home is a major milestone. It should feel exciting, not overwhelming. But with so many moving parts like finance checks, real estate agents, inspections, and contracts, it can quickly get confusing.

That's why we've created this easy-to-follow guide. You'll get clear, practical advice at every step, from getting your finances sorted to receiving the keys. Whether you're just starting to think about it or already attending open homes, this guide is for you. 

Step 1: Check Your Finances

Why your credit score matters

Your credit score plays a big role in how lenders assess your first home loan application. It's one of the first indicators they use to gauge your financial reliability and determine whether to approve your loan. 

A stronger score can not only improve your chances of approval but may also qualify you for lower interest rates, saving you money over time.

Check your credit score for free with Equifax or Experian.

How much can you afford?

Start by using online mortgage calculators or speaking with a mortgage broker to get a clear picture of your monthly repayment limits. This helps ensure you're not overcommitting and allows you to budget realistically. 

Be sure to factor in additional homeownership expenses like council rates, water bills, home insurance, and regular maintenance to avoid unexpected financial stress later on.

Build a workable budget

Take the time to record your monthly income, current debts, and regular living expenses to get a full picture of your financial health. This exercise helps identify how much you can realistically save each month and what size deposit you can comfortably aim for. 

A deposit between 5 to 20 percent of the purchase price is standard, with higher deposits often giving you access to better loan terms and potentially avoiding Lenders Mortgage Insurance.

Start saving

Once you've got a clear budget and deposit target, the next step is setting those savings in motion. Saving for a home isn't just about the deposit; it's also about preparing for the range of upfront costs that come with buying. 

Planning for these in advance helps you stay financially secure and reduces the risk of unexpected hurdles. If you're a first-home buyer, you may also want to explore options through Housing Australia, which provides access to government initiatives like the First Home Guarantee and other support schemes.

You'll need money for:

• The deposit
• Inspection reports
• Government charges like stamp duty
• Mortgage registration fees

Tip: Use the QLD Government Stamp Duty Calculator to see how much you might pay.

Step 2: Get Pre-Approved for a Mortgage

What pre-approval does

Getting pre-approved gives you a solid understanding of your borrowing power based on a review of your financial information. While it's not a final loan offer, it signals to sellers and agents that you're a serious buyer and helps guide your property search within a realistic price range. 

This step can also highlight any financial gaps or issues early, giving you time to address them before making an offer.

Comparing loans and lenders

Once you know how much you can borrow, it's time to weigh up the different types of home loans available. Not all loans are created equal, interest rates, fees, features, and flexibility can vary significantly from lender to lender.

Understanding these differences helps you avoid paying more than you need to over the life of your loan.

Look at:

• Fixed vs variable rates
• Fees and charges
• Whether Lenders Mortgage Insurance (LMI) applies

Working with a mortgage broker can help you compare the fine print and choose what fits your needs.

Documents to gather

Before applying for pre-approval, it's a good idea to get your paperwork in order. Lenders will want to see evidence of your income, financial history, and identity to assess your application properly. Having these documents ready can speed up the process and show you're organised and serious.

You'll need:

• Bank statements
• Payslips
• Proof of identity
• Latest tax return

Pre-approval vs pre-qualification

Pre-qualification is a quick, informal estimate of how much you might be able to borrow based on unverified information you provide. It's useful as a starting point but doesn't carry much weight with sellers or lenders. 

Pre-approval, on the other hand, is based on verified financial documents and gives a more accurate picture of your borrowing power. It shows you're serious and financially ready.

Step 3: Understand the Key Players and Choose the Right Agent

When you're buying your first home, you're not just house-hunting. You're navigating a system with multiple professionals involved. Knowing who does what is critical to making smart decisions and avoiding confusion.

Real Estate Agent

A real estate agent is hired by the seller to market and sell the property. Their job is to:

• Advertise the property
  
• Run inspections and open homes
  
• Represent the seller in negotiations
  
• Try to get the best possible price for the seller

They can answer your questions and help you submit an offer, but they don’t work for you. Their legal duty is to the vendor, not the buyer.

Buyer’s Agent

If you want someone on your side, you can hire a buyer’s agent. They represent you, the buyer. A buyer’s agent can:

• Search for and evaluate properties (including off-market deals)
  
• Handle inspections and appraisals
  
• Negotiate with the seller’s agent
  
• Bid at auctions on your behalf

Not all homebuyers use one, but it can be a huge advantage, especially if you're time-poor, unsure about the process, or buying in a hot market. Buyer’s agents charge a fee, but they work only for you.

Mortgage Broker

A mortgage broker isn’t involved in property inspections or negotiation, but they play a key role in your financing. Their job is to:

• Help you compare home loans from various banks and lenders
  
• Recommend options based on your financial situation
  
• Submit your application and manage paperwork through to approval

They’re paid by the lender (not by you directly), but they’re legally required to act in your best interest.

What You Should Do as a First-Home Buyer

• Work with a real estate agent to view and make offers on homes, but remember they’re working for the seller.
  
• Consider hiring a buyer’s agent if you want expert help finding the right place and negotiating a deal that protects your interests.
  
• Get a mortgage broker on board early so you know your borrowing power and can act quickly when you find the right property.

Each of these professionals plays a different role. When you know how they fit together, you're far better prepared to buy with confidence.

Step 4: Start House Hunting

Must-haves vs nice-to-haves

Be honest about your priorities. Think about what you absolutely need in your new home (number of bedrooms, proximity to work or schools) and what features would be nice but aren't deal-breakers. This helps narrow your search and keeps emotions in check.

At open homes

Bring a checklist and take notes during inspections. Pay attention to things like natural light, storage, noise levels, and general condition. Don't hesitate to ask the agent questions about the property's history or the seller's situation.

Research the area

Explore the suburb's amenities, commute options, local schools, and crime rates. Online tools like Domain and Realestate.com.au provide helpful suburb profiles and recent sales data. Take a drive or walk around the neighbourhood to get a feel for the community.

Inspect before you commit

Hire a licensed inspector to conduct a thorough review of the property's structure, safety, and compliance with regulations. Their expertise can uncover hidden issues, such as faulty wiring, foundation problems, or previous unapproved renovations, that could cost you heavily down the line. 

This extra step gives you peace of mind and strengthens your negotiating position if repairs are needed.

Step 5: Make an Offer and Finalise the Deal

Once you've found the property that ticks the right boxes, it's time to take the next big step, making an offer. This phase can be fast-paced and emotional, but approaching it with a clear plan and the right support helps keep things on track. 

Understanding how to structure a strong offer and what to include will give you a better chance of success while staying within your financial comfort zone.

How to make a solid offer

Research recent sales of similar properties in the area so you know what a fair price looks like. Decide your maximum price and stick to it, especially at auctions where it's easy to get carried away. Always make sure your offer is subject to finance and inspections.

Understand the contract

Before signing anything, have your solicitor or conveyancer review the contract. They'll ensure key conditions are included, like a finance clause, building and pest inspections, and a cooling-off period if applicable.

What to expect at inspection

Hire a licensed inspector to confirm the home is safe, legal, and won't cost you thousands in repairs later. This is also the time to check that everything agreed upon in the sale, like repairs or inclusions, is in place.

Final settlement day

Settlement is the final, exciting step where everything comes together, and ownership officially changes hands. It's when the legal and financial pieces are finalised, your loan is funded, and you get the green light to receive the keys. 

While your conveyancer or solicitor handles most of the behind-the-scenes work, knowing what happens on settlement day helps you feel prepared and confident.

You'll:

• Sign final documents
• Pay stamp duty and remaining funds
• Get confirmation of title transfer

Still comparing loans and options? Our experienced mortgage brokers on the Gold Coast are here to make buying your first home easier with better rates and faster approvals.

Frequently Asked Questions (FAQs)

Is now a good time to buy a home?

The right time depends on your individual circumstances. If you’ve built up a solid deposit and your finances are steady, you can take advantage of the current property market and move forward with greater confidence as a first-time buyer.

How much deposit do I need for a first home buyer in Australia?

Most first-home buyers aim for at least 10% of the purchase price, but 20% is often ideal to avoid Lenders Mortgage Insurance. Your deposit size may also affect the type of loan you can access and the overall affordability of your loan repayments.

How much savings do you need to buy a house in Australia?

Aside from your house deposit, it's important to factor in additional costs like stamp duty, building inspection fees, and solicitor charges. Being realistic about ongoing costs such as insurance, council rates, and mortgage repayments will help keep your finances on track after you move in.

What are hidden costs when buying a home?

Beyond the purchase price, there are several hidden costs to factor into your budget, including building and pest inspections, mortgage registration fees, conveyancing fees, stamp duty, and loan application fees. 

Many of these costs also cover checks for safety hazards and structural issues that may affect the property. Planning for these costs early ensures a smoother process.

Can I use the First Home Owner Grant in QLD?

Yes, if you're a first-time buyer, you may be eligible for the First Home Owner Grant. These government incentives can help cover initial buying costs or boost your deposit. It's worth checking eligibility criteria and how the grant can be applied to your buying plans.

What is a contract of sale, and why is it important?

The contract of sale is the legally binding agreement between the buyer and seller. It outlines important details such as the purchase price, conditions of the sale, and the settlement period. Having a solicitor or conveyancer review this document is essential to ensure your interests are protected.

What’s involved in a building inspection?

A building inspection checks for structural issues, damage, and compliance with safety standards. It’s a vital step to uncover hidden problems before purchase. The inspection fees are generally affordable and well worth the peace of mind they provide.

How do I choose the right suburb?

When researching suburbs, think about your long-term lifestyle and daily needs. Public transport access, schools, shops, and future growth potential all contribute to a good choice. Your property journey will be smoother if you choose a location that matches your goals and convenience.

Take Confident Steps Toward Homeownership

Buying your first home on the Gold Coast or anywhere in Queensland is a big life step. From sorting out your budget and finding the right agent to bidding on your dream property and signing the dotted line, the process can feel a little overwhelming at first.

But with the proper preparation, expert advice, and confidence in your financial choices, you'll be opening that front door before you know it.

Ready to take the next step? Reach out to our experienced Gold Coast mortgage brokers at LM Edge by calling 07 4721 4772 or visiting our website lmedge.com.au and schedule a free chat.