There are many things to consider when purchasing your first home. The experience can be very daunting, however with a smart approach and using the right people to assist, you can make buying your first home purchase very pleasurable. Some points you should know are:

Deposit
When purchasing a home for owner occupation, the lender will require you to provide a deposit. This amount is usually a minimum of 5% although some lenders may allow a deposit as low as 2%. Your contribution is required to establish some equity and also allow the lender to reduce the exposure in the event of default.

When purchasing a property the real estate agent will usually ask for approx $1000 as a holding deposit. Once you exchange contracts to buy the property, you are then liable for up to 10% of the purchase price, even if you are only providing a 5% deposit.

Genuine Savings
Most first home buyers have a 5-10% deposit. When applying for a home loan, the lender will require evidence that your deposit has been saved over a period of at least three months. To evidence this, you must show your bank account statements to verify your savings pattern. This is required to satisfy 'Mortgage Insurer'. This requirement is strict and is not one that can be overlooked by any lender. In some cases, the assistance of family members by way of guarantees may waive the deposit requirement.

First Home Owners Grant (FHOG)
The Commonwealth Government is currently providing cash incentives for first home buyers to purchase property. To be eligible none of the applicants can have previously owned a home anywhere in Australia. If an applicant's spouse or de facto has previously owned a home, no grant will be available. At this stage, the scheme is not means tested either by income, assets or property valuation. For more information go to http://www.dtf.wa.gov.au/cms/osr_content.asp?ID=344
Most Lenders are now agents for the FHOG and can take your application along with your home loan application.