Do You Know Your Home Buying Timeline as a First Home Buyer?

Understanding the Journey to Homeownership

Buying your first home is a significant milestone in your career as a dentist. Whether you're a recent graduate or an established general dentist, understanding the home buying timeline can help you prepare financially and emotionally for this important decision. The process typically takes between three to six months, though individual circumstances can vary considerably.

This timeline covers everything from initial research and saving your deposit through to settlement day. Having a clear understanding of each stage helps you plan effectively and avoid unnecessary delays.

Stage 1: Research and Financial Planning (1-3 Months)

Before you begin searching for properties, it's essential to understand your financial position and explore your home loan options. This initial stage involves:

• Reviewing your income, expenses, and savings
• Creating a realistic first home buyer budget
• Researching first home buyer eligibility criteria
• Understanding first home buyer stamp duty concessions in your state
• Investigating first home owner grants (FHOG) available to you
• Exploring schemes like the First Home Loan Deposit Scheme and Regional first home buyer Guarantee

As a dentist, you may have access to specific benefits when applying for your first home loan. Many lenders recognise the stable income potential of dental professionals and may offer interest rate discounts or LMI waivers. Taking time to understand these advantages can significantly impact your borrowing capacity.

You should also familiarise yourself with low deposit options, including 5% deposit and 10% deposit schemes. If family members are willing to assist, understanding how a gift deposit works within the lending criteria is valuable.

Stage 2: Getting Pre-Approval (2-4 Weeks)

Once you've completed your research, the next step is getting loan pre-approval. This process involves submitting a first home loan application to a lender who will assess your financial situation and confirm how much you can borrow.

Pre-approval provides several advantages:

1. Confirms your borrowing capacity
2. Demonstrates to vendors that you're a serious buyer
3. Helps you focus your property search within your price range
4. Locks in an interest rate for a specified period (typically 90 days)

When you apply for a home loan, you'll need to provide documentation including proof of income, identification, savings history, and details of your expenses. As a general dentist, having your employment contract and recent payslips readily available streamlines this process.

During pre-approval, you'll also decide between a fixed interest rate, variable interest rate, or a split loan. Each option has distinct advantages depending on your financial circumstances and risk tolerance. Consider features like offset accounts and redraw facilities that can help you manage your mortgage more effectively.

Stage 3: Property Search and Offer (4-12 Weeks)

With pre-approval secured, you can confidently begin your property search. This stage varies considerably depending on market conditions and your specific requirements. When buying your first home, consider:

• Location relative to your dental practice
• Property type and condition
• Potential for capital growth
• Proximity to amenities and transport
• Your lifestyle needs and future plans

Once you've found a suitable property, you'll make an offer either through a private treaty or at auction. Having pre-approval strengthens your negotiating position and allows you to act quickly when the right property becomes available.

Stage 4: Contract and Cooling-Off Period (3-5 Days)

After your offer is accepted, you'll receive a contract of sale. This document outlines all terms and conditions of the purchase. In most states, you'll have a cooling-off period (typically 3-5 days for private sales) during which you can withdraw from the purchase, though penalties may apply.

During this period, arrange:

• Building and pest inspections
• Strata reports (for apartments)
• Legal advice to review the contract
• Final confirmation with your mortgage broker

Stage 5: Formal Home Loan Application (2-4 Weeks)

Once the contract is signed and the cooling-off period has passed, you'll submit your formal home loan application. Your lender will conduct a valuation of the property to ensure it's adequate security for the loan amount.

This stage involves finalising:

• Loan structure and features (offset account, redraw, etc.)
• Whether you'll pay Lenders Mortgage Insurance (LMI)
• Application for any relevant first home buyer grants
• Insurance requirements (home and contents insurance)

For general dentists, this is when your profession-specific benefits are formally applied to your loan. Many lenders offer preferential terms to healthcare professionals, including reduced interest rates and LMI concessions.

Stage 6: Settlement Preparation (4-6 Weeks)

Settlement typically occurs 30-90 days after contract exchange, though this timeframe is negotiable between buyer and seller. During this period:

• Your lender will provide final loan approval
• Your conveyancer or solicitor will prepare settlement documents
• You'll arrange final inspections
• Utilities and services will be organised for changeover
• Final funds will be prepared, including your deposit and any additional costs

You may also consider the first home super saver scheme, which allows you to save for your deposit within your superannuation fund with potential tax advantages.

Stage 7: Settlement Day

Settlement is when ownership officially transfers from the seller to you. Your solicitor or conveyancer will handle the legal transfer, your lender will release the funds, and you'll receive the keys to your new home.

On settlement day:

• Final payments are exchanged
• Title transfer is registered
• You take possession of the property
• Your mortgage repayments commence

Creating Your First Home Buyer Checklist

To help you stay organised throughout this process, create a first home buyer checklist that includes:

• Savings goals and deposit targets
• Required documentation for your first home loan application
• Property search criteria
• Inspection and due diligence requirements
• Settlement preparation tasks
• Moving day arrangements

Understanding your options as a first home buyer is crucial. Explore various home loan options available specifically to dentists, as these can provide substantial financial benefits compared to standard lending products.

The path to homeownership requires careful planning and patience, but with proper preparation and professional guidance, the process becomes far more manageable. As a dentist, you're in a strong position to access favourable lending terms and build long-term wealth through property ownership.

Ready to begin your home buying journey? Our team understands the unique financial circumstances of dental professionals and can help you navigate each stage of the process. Call one of our team or book an appointment at a time that works for you.