Search
Close this search box.

How to Buy a House: Your Ultimate Guide to Purchasing Property

March 25, 2024
Read Time:
5 mins
Author:
Inovayt

Share

Read More

Buying property is a significant step in anyone’s financial journey. Whether it’s your first home, your next home, or an investment property, the steps it takes to buy a house differ based on the goal you’re trying to achieve. At Inovayt, we tailor our plans to your financial situation to help you get into your new home sooner. 

How to buy a house 

The time is finally here—you’re ready to purchase your home! Here are the steps you’ll need to take. 

Step 1: Engage an Inovayt broker

First, you’ll need the help of an Inovayt mortgage broker to guide you through the homebuying journey. They’ll simplify the process for you and communicate with external parties on your behalf. 

Step 2: Become home loan healthy

Your Inovayt mortgage broker will help you get home loan healthy. Firstly, they’ll analyse your bank account statements to confirm details such as living expenses, account conduct, liabilities and spending habits. Our deposit planner is a great tool to help you get started with becoming home loan healthy.

Want more? Download our free ‘Becoming Home Loan Healthy’ guide.

Step 3: Set your budget

During step two, you’ll work with your broker to create a budget. As a lender may approve you for more than you’re comfortable with, having a budget to refer to will help you determine what you can and can’t afford. 

Get a head start with our free Budget Planner. 

Step 4: Supply supporting documents

Next, it’s time to rummage through your paperwork to find supporting documents. This generally includes things like your driver’s license, passport, Medicare, payslips, bank statements, tax returns and more. 

Step 5: Your broker will check for government grants

As a first home buyer, you may be eligible for government grants depending on which state you live in. Your mortgage broker will advise if you’re eligible and get the ball rolling on securing the grant for you. 

Step 6: Choose a lender

With access to a wide variety of lenders, your broker will find which one suits you. The lender you choose will be based on your requirements and desires for a loan. 

Step 7: Obtain pre-approval 

Once you’ve chosen your desired lender, it’s time to obtain preapproval. If the lender is happy with your loan application, they will issue you a ‘pre-approval.’ This means you have essentially ticked six out of the eight required boxes, which include your income, savings, credit history, living expenses, account conduct with only satisfactory security (property), and valuation of the security outstanding to obtain full loan approval.

Step 8: Purchase a property 

It’s time for the fun to begin. This is the part where you can scour real estate apps and attend inspections on the hunt for your first home. Remember to stick to your budget! 

Step 9: Valuation and bank approval

Once you’ve found a house, the bank will complete a property valuation to ensure your home is worth what you’re paying for it. Provided everything matches up, the lender will then proceed to unconditional approval. 

Step 10: Mortgage contracts and final checks

From here, it’s time to finalise all of the little details. This includes signing on the dotted line and taking out insurance on the property. 

Step 11: Settlement

Settlement is the day you finally get the keys to your new place! Congratulations on purchasing your first home. 

Are you a first home buyer looking at purchasing your first home? Have a read of our first home buyers’ guide.

How to buy your next house

If you’ve purchased property previously and are looking for your next house, many of the steps you undertook for the first home buying process will remain the same. However,  when considering purchasing your next home, you’ll need to decide the following. 

Should I sell or rent? 

The first thing to consider when buying your next home is whether you’re going to rent or sell your existing property. Your Inovayt mortgage broker will go over factors with you, including your: 

Renovation options

If you’re purchasing a home that needs some renovations, or you’re renovating your current home to add some value before you sell, choosing which renovation option you need will depend on whether you require structural, or minor, non-structural renovations.  

Purchasing options

Before you settle on the home of your dreams, you’ll need to work out which financial option is best for you. Your Inovayt mortgage broker will discuss your options with you, including things like:

  • Bridging loans
  • Simultaneous settlement
  • Sell first and purchase later
  • Guarantor loans

Find out more about purchasing your next home

How to buy an investment property

Whether it’s your first investment property or you’re looking to grow your portfolio, the original steps, again, are similar to the previous two purchasing options, including engaging an Inovayt broker and taking the steps to become home loan healthy. 

While your broker will assist you with the financial side of purchasing, you might also consider enlisting the help of a buyer’s advocate who will assist you with finding an investment property that ticks all of your boxes. This includes helping you decide what and where to buy. 

Once you know what you’re after, your mortgage broker and other professionals like accountants will walk you through the financial impacts of purchasing an investment property, including: 

  • Earning a return
    • Capital growth
    • Rental returns
  • Maximising tax benefits
    • Deductions
    • Negative gearing
    • Capital gains tax

Head to our blog to learn more about property investment

How can a mortgage broker help me buy a house? 

Whether it’s your first home, your next home, or an investment property, our team of expert mortgage brokers is here to help you get into your next house sooner. Our wealth of knowledge and experience, coupled with a variety of lenders, means we have all the tools to assist you in landing the home of your dreams. Get in touch today to start (or continue!) your home-buying journey.

Ready to buy your first or next house? We're here to help.

Share

Start your journey, contact Inovayt today