Every property purchase journey is unique, but many borrowers face similar challenges along the way — understanding borrowing capacity, navigating competitive markets, managing timelines, and dealing with unexpected hurdles during the settlement process.
In this case study, we follow the journey of “Sarah and Michael”, a realistic Brisbane couple, from their initial pre-approval conversation through to settlement. While their names and some details have been changed, their situation reflects challenges we see regularly with clients in 2026.
This article walks through the key stages of their purchase, the obstacles they encountered, how those were resolved, and the practical lessons that emerged. It is designed to help other buyers understand what the process can actually look like in practice.
At Finstac, we believe that sharing real client journeys (with permission and anonymity) helps demystify the lending and purchasing process. Our role is to guide clients through each stage with clarity and care.
If you are planning your own property purchase and would like support from pre-approval through to settlement, book a free consultation with one of our brokers.
Table of Contents
- Client Background and Goals
- Stage 1: Initial Borrowing Capacity Discussion
- Stage 2: Pre-Approval Process
- Stage 3: Property Search and Making an Offer
- Stage 4: Formal Application and Valuation
- Stage 5: Contract and Due Diligence
- Stage 6: Approaching Settlement
- Challenges Encountered and How They Were Resolved
- Key Lessons from Sarah and Michael’s Journey
- Timeline Summary
- FAQs
- Conclusion and Next Steps
Client Background and Goals
Sarah and Michael (names changed) are a couple in their early 30s living in Brisbane’s southside. Sarah works as a registered nurse (PAYG) and Michael is a self-employed electrician who has been running his own business for three years.
Their situation in early 2026:
- Combined gross income: approximately $175,000
- Savings: $92,000 in genuine savings
- No existing debts other than a small car loan ($8,500 remaining)
- Michael’s business had shown consistent growth over the previous two financial years
- Goal: Purchase their first home in the $650,000 – $720,000 range in the outer southside growth corridor (areas such as Loganlea, Marsden, or Springwood)
They wanted a 3–4 bedroom house with room to start a family, and they were prepared to buy a property that needed some cosmetic work if the price and location were right.
Stage 1: Initial Borrowing Capacity Discussion
Sarah and Michael first contacted Finstac in February 2026 after attending several open homes and feeling unsure about what they could realistically afford.
During the initial conversation, we discussed:
- Their income (including how Michael’s self-employed income would be verified)
- Their savings and whether they qualified for any government schemes
- Their comfort level with different loan amounts and monthly repayments
- Their medium-term plans (starting a family within 3–5 years)
We ran preliminary numbers across several lenders. Because Michael was self-employed, we needed two years of tax returns and financial statements. His business had grown strongly, which helped his borrowing capacity, but lenders would still apply conservative assessment methods.
Outcome: We estimated they could comfortably borrow up to approximately $620,000–$660,000 depending on the final lender and exact income verification. This put them in a position to look at properties up to around $720,000–$750,000 with their deposit.
Stage 2: Pre-Approval Process
We recommended obtaining formal pre-approval before making any offers. This gave Sarah and Michael:
- A clearer understanding of their maximum borrowing capacity
- Stronger negotiating power when making offers
- Confirmation of which lenders were most suitable for their situation (particularly regarding Michael’s self-employment)
The pre-approval process took approximately three weeks. We worked with Michael’s accountant to ensure the financial documentation was clear and consistent. Two lenders were shortlisted — one was more flexible on self-employed income verification, while the other offered a slightly better rate but required stronger evidence of income stability.
Result: Pre-approval was granted for $640,000 with one of the lenders. This gave Sarah and Michael confidence to begin making offers in their target range.
Stage 3: Property Search and Making an Offer
Over the next six weeks, Sarah and Michael inspected more than 25 properties. They worked with a buyer’s advocate for three weeks but ultimately decided to continue the search themselves after feeling they had a good understanding of the market in their preferred suburbs.
They found a 4-bedroom house in Marsden that had been on the market for several weeks and needed cosmetic updates. The listed price was $695,000.
After discussing strategy with us, they made an initial offer of $660,000, subject to finance and building and pest inspections. The vendor countered at $675,000. After further negotiation (supported by recent comparable sales data), they agreed on a purchase price of $668,000.
Stage 4: Formal Application and Valuation
Once the contract was signed (subject to finance), we moved quickly to submit the formal loan application.
Key steps included:
- Submitting full financial documentation for both Sarah and Michael
- Providing the signed contract and details of the property
- Arranging the valuation
The valuation came back slightly lower than the purchase price at $655,000. This created a small LVR issue because the lender had approved based on the purchase price.
Resolution: We negotiated with the lender to use a blended approach and Sarah and Michael agreed to contribute a small amount of additional deposit from their savings buffer. The lender ultimately approved the loan at the contracted purchase price after reviewing recent comparable sales in the area.
Stage 5: Contract and Due Diligence
During the due diligence period, the building and pest inspection revealed several issues:
- Minor termite activity in the subfloor (treated and covered by a warranty)
- Some roof leaks that needed repair
- Outdated electrical wiring in parts of the house
Sarah and Michael were initially concerned. We helped them obtain quotes for the required works (approximately $9,500–$11,000) and used this information to negotiate a $8,000 price reduction with the vendor. The contract was amended, and they proceeded.
This experience highlighted the importance of allowing enough time in the due diligence period and having access to reliable tradespeople for quotes.
Stage 6: Approaching Settlement
The settlement was scheduled for 12 weeks after contract signing — a relatively standard timeframe in Queensland.
In the lead-up to settlement, we helped coordinate:
- Final loan documents and signing
- Confirmation of building insurance
- Transfer of funds and coordination with the solicitor
- Final inspection arrangements
Two days before settlement, a minor issue arose with the discharge of the vendor’s existing mortgage, which delayed settlement by 48 hours. Because we had maintained close communication with all parties, Sarah and Michael were prepared for the short delay and it did not cause significant stress.
Settlement occurred successfully in early June 2026.
Challenges Encountered and How They Were Resolved
Challenge
Impact
How It Was Resolved
Lesson Learned
Self-employed income verification
Slower pre-approval process
Worked closely with accountant; chose flexible lender
Start documentation gathering early
Valuation came in lower than price
Potential LVR issue
Negotiated with lender using comparable sales data
Have a small savings buffer available
Building issues found in inspection
Potential extra costs
Obtained quotes and negotiated price reduction
Always allow time and budget for issues
Minor settlement delay
48-hour delay
Maintained clear communication with all parties
Expect minor issues and stay flexible
Key Lessons from Sarah and Michael’s Journey
- Pre-approval is valuable — It gave them confidence and negotiating power, even though the final loan amount was slightly lower than the pre-approval figure.
- Self-employed borrowers need to plan ahead — Gathering two years of clean financial documentation early made the process smoother.
- Building and pest inspections are critical — They saved Sarah and Michael thousands of dollars through successful negotiation.
- Having a small financial buffer matters — It helped them manage the lower valuation without derailing the purchase.
- Communication and coordination are essential — Working with professionals who communicate well (broker, solicitor, buyer’s advocate if used) reduces stress significantly.
- Flexibility helps — Being willing to negotiate on price and accept minor delays made the overall experience much smoother.
Timeline Summary
- February 2026: Initial consultation and borrowing capacity discussion
- Late February – Mid March: Pre-approval obtained
- Mid March – Late April: Property search and contract signed
- Late April – Early May: Formal application, valuation, and due diligence
- Early June 2026: Settlement completed
Total time from first conversation to settlement: Approximately 4 months.
Conclusion and Next Steps
Sarah and Michael’s journey illustrates many of the common challenges buyers face in 2026 — from self-employed income verification and valuation discrepancies to building issues and minor settlement delays. With preparation, realistic expectations, and good professional support, these challenges are usually manageable.
Their experience also shows that the process is rarely perfectly smooth, but it doesn’t need to be overly stressful when you have the right guidance and maintain clear communication with all parties involved.
At Finstac, we support clients through every stage of the journey — from the first borrowing capacity conversation through to settlement and beyond. We aim to make the process as clear and straightforward as possible while helping clients avoid common pitfalls.
If you are thinking about buying your first home or next investment property, we would be happy to discuss your situation and how we can support you through the process.
Questions answered.
From pre-approval to settlement, most purchases take between 3 and 6 months, depending on how quickly you find the right property and the settlement period negotiated in the contract.
It happens reasonably often, especially in areas where prices have been rising. Having a small buffer or being prepared to negotiate helps manage this.
Very important. They can reveal issues that allow you to negotiate a price reduction or, in some cases, walk away from the purchase.
It added some complexity and required more documentation, but it was very manageable with proper preparation and the right lender choice.
It depends on the buyer. Sarah and Michael ultimately managed without one, but many clients find them valuable, especially in competitive markets or if they are time-poor.
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First home buyer loans in Australia. The plain-English guide.Everything on this topic in one place, with worked examples. No form required.
Written by
Jonathon Radford
Director
- Master of Applied Finance, majoring in Investment Management
- Advanced Diploma of Financial Planning
- Diploma of Finance and Mortgage Broking Management
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