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- Step By Step Process
- Building progress payment
- Ordering Credit Report
- Paying your land deposit
Home Deposit Loans - a Step by Step Guide
Step 1. Qualifying Criteria for Our Low to No Deposit Home Loans
- Clean credit history as shown on your Veda Credit Report (VCR)
- Total taxable household income of $100,000
- One applicant must carry a full-time work status.
Step 2. Assessment of your Credit History
To satisfy our first criteria you will have to complete our privacy declaration and consent form and send the form alongside with a copy of your driver's license to email@example.com. This will allow us to view your CCRA Veda Credit Report. This service will incur a cost of $33.00 per person which can be paid to our credit card authority system.
Should you have any enquiries at this step of the process do not hesitate to enquire online or get in touch with us at 07 5438 1054
Step 3. Assessing your Information
Following the verification of your credit information and should you meet our qualifying criteria, First Step Homes will move towards granting a conditional home deposit loan approval. This now means that you can move forward with the selection of homes from our range of solutions which include house and land packages, rent to own homes, buy and hold strategies and so much more.
Step 4. Selecting your House and Land Package
All our house and land packages come with fixed price contracts. We strongly recommend that any modifications be done after you have moved in so as to keep the price of the contracts down during the initial build period. All colour selections are decided by our interior and exterior designer so as to bring the best out of the estate. With First Step Homes what you see is what you get - a beautiful family home to call your own.
Step 5. Payment of Holding Deposit
Once you have selected the house and land package of your choosing you will be required to pay a holding deposit of $1000 to the land developer so as to reserve the lot. This fee is completely refundable should you decide against moving forward with your purchase.
Step 6. First Step Homes Fee
First Step Homes offers a unique financial model that supports Australians with clean credit histories and high incomes in achieving home ownership. Our research and development team have perfected this process ensuring an efficient service. Our professional service fee of $1,500 is payable following selection of your chosen lot of land. This is non-refundable.
Step 7. House & Land Contracts
Once we receive the holding deposits and our service fee, we will let the land developer know that you are interested in holding the particular block of land. We will also facilitate communication with our builders and ensure that the correct legal documents are submitted to their solicitors.
For purchases in Queensland we will be able to sign contracts before your bank loan has been approved. This contract will hold a 21 days finance clause that will enable us to facilitate your low to no deposit home loans.
In New South Wales we wait until we receive an unconditional authority from the lender before we progress into signing contacts with full loan approval.
Step 8. Preparing Your Paperwork
At this stage, First Step Homes will begin collecting your supporting documentation and paperwork. Now is the time to prepare your paperwork and gather evidence of your employment, income, assets, liabilities and expenses. You are also required to provide your driver's license or another form of identification, a rental ledger, recent pay slips, tax returns and bank statements.
Step 9. Speak with a Nominated Mortgage Broker
A First Step Homes nominated mortgage broker will be in touch with you to begin the bank loan process. We will share all information that has been collated through earlier stages of the process with the broker. This will incur a brokerage fee of $500 which is payable upon the start of your application.
Step 10. Documentation Lodgment to Banking System
Once all supporting documentation is received the broker will lodge a bank application with the lender. Following this there will be a three stage banking process:
Conditional Approval - The bank will base their conditional approval on an individual assessment, taking into account personal information, income and expense detail, and assets and liabilities. The lender will conduct a full income and credit verification check.
Subject Valuation - Now the bank will look at the house and land package of your choosing and produce a property valuation report including property information, rates, size of land, physical building details on construction, condition reports on the dwelling, and information on comparative sales in the area.
Unconditional Approval - Depending on your lender's requirements, lenders mortgage insurance allows for you to borrow up to 95% of the purchase price of your new home with a lower deposit than is usually required. This can help in reducing upfront costs as the lenders mortgage insurance premium will be added into the total loan amount. Following the mortgage insurer's assessment the applicant will receive a formal approval.
Step 11. Formal Mortgage Approvals
At this stage First Step Homes is ready to provide formal approval on the deposit loan. We will facilitate the loan documentation being sent to purchasers and get those signed off for you. The mortgage lender will also be ready to send all loan documentation to the purchaser at this stage.
Step 12. Settlement of Land
This stage will incur a solicitor's fee of approximately $1500 due at land settlement and payable by the purchaser.
Step 13. How Much Stamp Duty do I Pay and When?
Details differ as to stamp duties in accordance to state. First home buyers are exempt from stamp duty in both New South Wales and Queensland. For non-first home buys in Queensland stamp duty is paid in proportion to the land. The New South Wales government offers an incentive which allows up to $5,000 payable for stamp duty. A solicitor will need to go through this with each purchaser individually.
Step 14. Construction Contract and Commencement of Building
By this stage you would have signed a land and construction contract. Your builder would have lodged your building application with the appropriate council and once the land settles, the builder will be ready within a three week period to commence with the pouring of slab.
First Step Homes prides itself on their ability to project & manage the whole process from start to finish. We liaise with all parties involved to ensure the perfect home for you and your family. Make an appointment or enquire online to start this process today!