For most people, the biggest factor when starting the property search is what your budget might look like. On the surface, the two main elements are usually how much your deposit is and what your borrowing capacity looks like.

The first thing you should consider doing is talking to a mortgage broker who can look at your financial situation and get an idea of your initial budget.

However, there are a number of other factors that you’ve got to think about. For example, if you're buying a first home, you might not need to pay stamp duty. However, some states have different tiers, so you’ll need to see how your budget affects the overall level of stamp duty.

There are also several other hidden costs that you can easily overlook. Things such as conveyancing and inspections come up right away. Other costs like strata fees, insurance, council rates and general expenses will come up when you take possession.

Many home buyers quickly discover the home they want to buy is a little more expensive than what they’d anticipated.

Price guides are not always a very accurate representation of what properties are selling for in a certain area, so it’s important that you start taking a closer look at the state of the market.

While you’re working on getting pre-approval with the help of your mortgage broker, you should be finding out what comparable properties are selling for in the same area you’re currently wanting to buy.

Prices can move in the space of just a few months, so look at similar properties of the same age and size as what you’re looking for. Talk to agents if you have to get a feel for what your budget will buy.

As mentioned, getting pre-approved by a lender is a critical step in the home-buying process. When you know what you can afford you can see if your preferred type of property and location is within your budget. 

Being pre-approved will also give you the confidence should you be looking to buy at auction. It can also help you negotiate with the seller, as you know where the upper end of your budget is likely to be.

If you're organised and work with a mortgage broker, the home-buying process doesn't need to be daunting.