How Can You Buy a House? Step by Step Guide 2025

The initial financial preparation and planning

The journey of how you can buy a house begins long before you start inspecting properties. The initial stage is purely financial and planning-based, focusing on determining your true borrowing capacity and savings goals. Key steps include:

• Assessing finances: Reviewing your income, expenses and existing debts is crucial for understanding your affordability and managing cash flow.

• Saving the deposit: The standard goal is a 20% deposit to avoid Lenders Mortgage Insurance (LMI), plus additional funds for transaction costs (stamp duty, legal fees).

• Credit check: Checking your credit score and history is essential, as lenders use this to assess your risk profile and determine the interest rate offered.

• Pre-approval: Securing pre-approval from a lender provides a clear borrowing limit, allowing you to confidently search for properties within your budget.

This stage can feel overwhelming due to the sheer volume of loan products and lender criteria. HeyNest simplifies the first step of how can you buy a house by connecting you with a local, independent broker who handles the financial review and pre-approval process, offering clarity and tailored options from the start.

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Finding the property and making an offer

Once pre-approved, you can actively search the market for a property that meets your goals. This step defines what you buy and under what conditions. The process involves:

• Property search: Researching various suburbs across Australia, including Sydney, Melbourne, Brisbane and regional areas, to align with your lifestyle, budget and investment potential.

• Property inspections: Thoroughly inspecting properties and obtaining essential reports, such as building and pest inspections, to identify any major defects before purchase.

• Making an offer: In Australia, this is usually done via private treaty or auction. If making an offer, you negotiate with the seller's agent until an agreed price is reached.

• Signing the contract: Once an offer is accepted, both parties sign the contract of sale, which is then legally binding, usually subject to a cooling-off period (where applicable).

The buying stage requires strong negotiation skills and due diligence to secure the best price and terms. An independent broker is your ally in the negotiation process, ensuring that the contractual conditions align with your financial needs. HeyNest connects you with experts who offer impartial advice throughout this stage of how can you buy a house, reducing stress and ensuring you make an informed decision.

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Finalising the loan and settlement

The final phase involves securing full loan approval and legally transferring ownership of the property to your name. This is a critical stage requiring detailed coordination. Key actions include:

• Full loan application: Submitting the accepted contract to your lender/broker to move from pre-approval to full, formal loan approval.

• Conveyancing: Appointing a solicitor or conveyancer to manage the legal aspects, including checking the title, preparing transfer documents and calculating final adjustments (like council rates).

• Loan documentation: Reviewing and signing the final mortgage documents and loan agreements from the lender.

• Settlement: The official date where the lender advances the funds, the remaining purchase price is paid to the seller and the title legally transfers. This is when you receive the keys.

The final steps of how can you buy a house rely on seamless communication between the lender, the solicitor and yourself. HeyNest ensures a smooth transition to settlement by providing direct connection with a dedicated broker who manages the entire complex final process, coordinating with all parties to ensure a stress-free and on-time completion.

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Frequently asked questions

How long does the whole process take?

Typically, the process from finding a house to settlement takes 6 to 12 weeks, though this can vary based on the specific contract terms.

What is a cooling-off period?

A set period (usually 5-10 business days) after signing the contract where the buyer can withdraw from the sale, often forfeiting a small percentage of the price. It does not apply to properties bought at auction.

Do I need a solicitor or a conveyancer?

Yes. A solicitor or conveyancer is mandatory to manage the legal transfer of property title and ensure all settlement requirements are met.