Positioning Hat created by GUI using CFrame / AttachmentPos?

The hat places on the character right and can be removed, however, the hat isn't positioned correctly and is inside of the head. Here's my code:

function click()
    local player = game.Players.LocalPlayer
    local playername = player.Name
    local character = game.Workspace:FindFirstChild(playername)
    local children = character:GetChildren()

    --Hat Equips Here

    local hat3 = Instance.new("Hat")
    local part3 = Instance.new("Part")
    local hatweld = Instance.new("Weld")
    hatweld.Name = "AccessoryWeld"
    hatweld.Parent = hat3
    hatweld.Part0 = part3
    hatweld.Part1 = character:FindFirstChild("Head")
    hatweld.C0 = CFrame.new(0,0.125,-0.325)
    hat3.Name = "blondebun"
    part3.Parent = hat3
    part3.Position = character:FindFirstChild("Head").Position
    part3.Name = "Handle"
    part3.formFactor = 0
    part3.Size = Vector3.new(1, 1, 1)
    part3.BottomSurface = 0 
    part3.TopSurface = 0 
    part3.Transparency = 0
    part3.Locked = false
    part3.Anchored = false
    game.Lighting.meshes.blondebun:Clone().Parent = part3
    hat3.Parent = character
    hat3.AttachmentPos = Vector3.new(0,0.125,-0.325)
end

script.Parent.MouseButton1Click:connect(click)

Must I do something with the weld attachment point / CFrame or what? I assume I have to CFrame it onto the head, but how do I place it in the same position as the AttachmentPos Vector?