Buying your first home is an exciting time, but before you start picking out paint colors and planning where the couch is going, you need to know how much you can spend.

The fastest way to get mortgage approval is to get pre-approval first. And for that, we need to have a good understanding of your financial position. 

We’ve prepared this checklist to help you get into your new home sooner.

What do I need to know?

You wouldn’t buy a home without a building and pest inspection – and you shouldn’t start applying for a home loan until your foundation is sturdy, either. 

Before you start looking for passports and bank statements, it’s a good idea to assess your position now and make forecasts for the future. 

Here are some factors to consider:

A young family - or plans to start one?

If you’re childfree at the start of your buying journey, you’ll want to consider how changes to your family will impact your financial position – and what type of property will suit your needs. 

Time to maintain a large garden?

A grassy backyard might be a great drawcard but the upkeep may be too much to handle if you’re commuting professional or often kept busy with weekend engagements. 

A realistic plan for the future? 

Whether you’re looking to buy your property or settle into your forever home, having a rough idea of what the next 5-10 years might hold will help you make more informed decisions. If you’re hoping to start a family soon after you buy, selecting a property that’s ready to go may be a wiser choice than a renovator’s dream. Alternatively, is proximity to suitable schools as important as reducing your daily commute to work?   

Enough savings for a deposit?

Typically, first home buyers are required to have a deposit equalling 20% of the purchase price of their desired home. While having less than this is not necessarily a deal breaker, it can result in lower interest rates and negate the need for Lenders Mortgage Insurance (LMI), a Low Deposit Premium (LDP) or use of a Guarantor to secure your loan. 

Now that you have a better understanding of your financial position and needs for the future, it’s time to prepare the paperwork. 

What documents do I need? Your handy checklist.

There are three things you’ll need to prove when it comes to purchasing a home:

  1. Proof of Identity
  2. Proof of Deposit
  3. Proof of Income

To fast track your application, we recommend submitting all your documentation at once. Here’s what you’ll need…

1. Identity
  • Drivers Licence, or
  • Australian passport, or
  • International passport with a valid permanent residency visa for Australia
2. Deposit
  • At least three (3) months of bank statements (all accounts), and/or
  • Letter(s) confirming receipt of non-repayable financial gift from family members, and/or
  • Dividend statements/share certificates, and/or
  • Settlement statement (if accessing proceeds from a previous property sale), and/or
  • Other proof of genuine savings
3. Income

PAYG Employees:

  • Two (2) recent payslips, and
  • 3 months of bank statements, and either:
  • Income statement, or
  • Current letter of employment

Self Employed Applicants:

  • Declaration of financial position, and either:
  • Declaration of financial position, or
  • 2 years' financial statements by an accountant

Are you ready?

Great! Book in an appointment with our Loans Specialists or apply now to make the move on your dream home today!

Contact our Loans Specialists on 1300 665 553 (option 2) or loans@woolworthsteambank.com.au.