10 Steps to Navigate the Home Buying Process

The home buying process unfolds in ten distinct stages, starting with understanding how much you can borrow and ending with settlement and handover of keys.

For WA Government employees, stable employment and sector-specific loan features mean you'll often move through this process with advantages that aren't available to everyone. Those advantages include access to waived Lenders Mortgage Insurance on higher loan amounts, which reduces upfront costs, and potential rate discounts that lower your ongoing repayments. Knowing what happens at each stage helps you prepare the right documents, avoid delays, and make decisions that suit your circumstances.

Work Out Your Borrowing Capacity and Savings Position

Your borrowing capacity is the maximum loan amount a lender will approve based on your income, expenses, debts, and employment status. For WA Government employees, stable public sector employment and clear payslip structures usually mean straightforward income verification and confidence from lenders. You'll need genuine savings to cover your deposit and settlement costs. Consider a buyer earning $95,000 annually with minimal debts and no other dependants. Their borrowing capacity would typically support a loan in the mid-$500,000 range depending on interest rate settings, but deposit size and access to schemes like the Home Guarantee Scheme will determine what price range they can actually pursue. Knowing this number before you start looking at properties keeps your search realistic and your offers credible.

Get Your Home Loan Pre-Approval in Place

Pre-approval is a conditional commitment from a lender to provide a loan up to a specific amount, subject to property valuation and final checks. This step comes before you make an offer and gives you clarity on what you can afford. Getting loan pre-approval involves submitting payslips, tax returns, bank statements, and identification to a lender or broker. For WA Government employees, pre-approval can be faster because your employment is verifiable and stable. Pre-approval is typically valid for three to six months, so timing matters if you're still deciding where or what to buy.

Search for a Property That Fits Your Budget and Goals

Once you know what you can borrow and have pre-approval, you're ready to search. Focus on properties within your confirmed price range, factoring in settlement costs like stamp duty, building and pest inspections, conveyancing fees, and any immediate repairs or modifications. In Perth's northern suburbs, median prices differ significantly between established areas and newer estates, so your deposit size and loan amount will determine which precincts are within reach. Don't stretch to the absolute top of your pre-approval unless you've stress-tested repayments against potential rate rises.

Make an Offer and Negotiate Terms

When you find a property, you'll make an offer either through a real estate agent or at auction. Your offer should reflect the property's condition, recent comparable sales, and how long it's been on the market. Negotiation might involve price, settlement period, or inclusions like fixtures and fittings. Having pre-approval strengthens your position because sellers know you can proceed quickly. If your offer is accepted, you'll sign a contract of sale and typically pay a holding deposit, often around $1,000 to $5,000, which is held in trust until settlement.

Arrange a Building and Pest Inspection

Before the cooling-off period ends or finance clause expires, arrange a building and pest inspection. This inspection identifies structural issues, timber damage, or other defects that could affect the property's value or safety. The report might reveal problems that justify renegotiating the price, requesting repairs, or withdrawing from the purchase. Skipping this step to save a few hundred dollars can cost you tens of thousands if major issues surface after settlement. Make sure the inspection happens early enough that you have time to act on the findings.

Submit Your Formal Loan Application

Your pre-approval now converts to a formal application. You'll provide the signed contract of sale to your lender or broker, who will order a property valuation to confirm the purchase price aligns with market value. The lender reviews the valuation, verifies your financial position hasn't changed since pre-approval, and assesses the property's suitability as security. For WA Government employees, this stage often benefits from access to no LMI loans at higher loan to value ratios, which can reduce upfront costs significantly if you're borrowing above 80 per cent of the property's value.

Choose Your Loan Structure and Features

Before final approval, you'll select your loan structure. A variable rate home loan offers flexibility and potential offset account benefits. A fixed rate locks in your interest rate for a set period, usually one to five years, protecting you from rate rises but limiting extra repayments. A split loan divides your borrowing between fixed and variable portions, balancing certainty and flexibility. You'll also decide whether to include an offset account, which reduces interest by offsetting your savings balance against your loan amount, or redraw facilities that let you access extra repayments. Consider how much certainty you want versus how much flexibility you'll actually use.

Receive Unconditional Loan Approval

Once the lender is satisfied with the valuation, your financial position, and the property's condition, they issue unconditional approval. This means the loan is confirmed and will proceed to settlement, subject only to standard legal checks. At this point, you'll receive a final loan contract outlining your loan amount, interest rate, repayment schedule, fees, and conditions. Review this document carefully before signing. If anything has changed from what you expected, raise it immediately with your broker or lender.

Finalise Conveyancing and Legal Checks

Your conveyancer or solicitor handles the legal transfer of ownership. They conduct title searches, verify there are no outstanding debts or easements affecting the property, liaise with the seller's legal representative, and prepare settlement documents. They'll also calculate adjustments for council rates, water rates, and strata fees if applicable, ensuring you only pay for the period you own the property. You'll need to arrange building insurance before settlement, as you're responsible for the property from the settlement date even if you haven't moved in yet.

Attend Settlement and Receive the Keys

Settlement is the final exchange where the lender transfers funds to the seller, and ownership transfers to you. Your conveyancer handles this process, which usually occurs at a settlement office or electronically. Once settlement is complete, your conveyancer confirms the transfer, and you're legally the owner. The real estate agent will then arrange key handover, usually later the same day. After settlement, your loan repayments begin according to the schedule in your loan contract. If you've structured your loan with an offset account, start using it immediately to reduce interest from day one.

Call one of our team or book an appointment at a time that works for you. We'll walk you through each stage, ensure your application uses the sector-specific benefits available to WA Government employees, and coordinate timing so nothing falls through at the last minute.

Frequently Asked Questions