First home buyer checklist: documents, pre-approval and getting mortgage-ready

Getting mortgage-ready before you start seriously house hunting saves a lot of stress later. Here is a practical rundown of what to have in order, roughly in the sequence it usually comes up.

Step one: build a clean savings history

Lenders generally want to see genuine savings, meaning funds you have accumulated yourself over a period of time rather than a lump sum that appeared right before you applied. Regular, consistent deposits into a savings account over three to six months tend to look stronger than an irregular pattern, even if the end total is the same.

Step two: gather your core documents

Most lenders and brokers will ask for a similar core set of paperwork:

• Recent payslips, usually the last two to three, or tax returns if you are self-employed.
• Bank statements covering several months, showing savings and everyday spending.
• Identification documents.
• Details of any existing debts: credit cards, car loans, buy-now-pay-later balances.
• Evidence of your deposit source, particularly if any of it is a gift from family.

Having these ready before your first meeting with a broker speeds up everything that follows.

Step three: check your credit position

Review your credit report before applying, since errors or forgotten small debts can affect your borrowing capacity or approval. Paying down credit card balances and closing unused cards you are not using can also improve how a lender views your position.

Step four: get pre-approved

Pre-approval is a conditional indication from a lender of how much you can likely borrow, based on your documents and a preliminary assessment. It is not a guarantee, but it gives you a realistic budget before you start making offers, and it signals to agents and sellers that you are a credible buyer. Pre-approval typically lasts around three months, so timing it close to when you plan to actively search matters.

Step five: check eligibility for government support

Many first home buyers qualify for some combination of grants, stamp duty concessions, or low-deposit guarantee schemes. Checking eligibility early, rather than after you have found a property, avoids missing a scheme with limited places or a strict application timeline.

A few things that trip people up

Applying for new credit, such as a car loan or an extra credit card, in the months before applying can unexpectedly lower your borrowing capacity or complicate your application, since lenders factor in the full limit of any credit product you hold, even if you rarely use it. Similarly, using buy-now-pay-later services shows up on bank statements and can raise questions if used frequently, even where balances are small. Neither of these has to be a dealbreaker, but they are worth being aware of before you start the process rather than discovering them partway through.

Setting a realistic budget alongside pre-approval

Pre-approval tells you what a lender will likely lend, but it is not necessarily what you should borrow. Building in a buffer for ongoing costs beyond the mortgage repayment itself, such as council rates, insurance, and maintenance, gives a more honest picture of what you can comfortably afford before you start attending inspections with a number in mind.

The checklist at a glance

Stage	What to have ready	Typical timing
Savings history	3 to 6 months of consistent deposits	Start early
Core documents	Payslips, bank statements, ID, debt details	Before first broker meeting
Credit check	Report reviewed, small debts cleared	Before applying
Pre-approval	Conditional approval from a lender	Shortly before house hunting
Government schemes	Eligibility confirmed	Before making an offer

Once your documents and savings history are in order, a broker can usually confirm your realistic budget and pre-approval status within a week or two, which turns an abstract goal into a concrete number you can search against.

If you are ready to take the next step, browsing first home buyer specialists is a good place to start, and our scoring method explains how we compare them. You can also explore the wider directory if you want to see all local options first.