By salenawilson Buying a new home for the first time is both exciting and exhausting. You are excited to build your first home, but this topic’s overwhelming information can be confusing and exhausting. Some people wish to take a home loan in Sydney, and some want to rent a place. But for both these alternatives, there are different myths and misconceptions. Most of the myths are not true and are far from reality. Myths make it harder for first-time home buyers to make effective decisions.
Myths create confusion and affect your decision to buy a home. All you need is the correct information and guidance to make your first home-buying journey smooth and effective. To smoothen your first home-buying journey, we have curated a list of first-home-buyer myths and have revealed the reality behind the myths.
7 First-Time Home Buyer Myths Demystified
- It is not the right time to buy a new home
You must have heard that according to property trends for the year 2024 in Australia, it is not the right time to buy a new home. However, this is not true. Even though the market fluctuates daily, people always need to buy or rent homes. If you keep waiting in the hope that prices may drop, you might miss out on a wonderful opportunity and will have to settle for something less than your expectations. Hence, consult a finance broker in Sydney and buy your new home now.
- Getting home on rent is better than buying a new home
This is another common myth that benefits those who rent their property. If you think that escalating property prices are restricting you from purchasing a new home, you must know that the rent is increasing, too. Paying rent has become quite expensive as compared to buying a new home. Buying a new home is a one-time investment and, thus, a smarter choice. Also, the government offers First Home Owner Grants to help first-time home buyers in the country.
- The asking price is the final cost of the home
Whenever you get to know the price of the property, ensure that you visit, check, and negotiate the amount. The asking price of the lender is not the final price. Depending on other factors such as a good credit score, having a pre-approval for a mortgage, and if your offer is lucrative for the seller, chances are you may get the house you want. Consult the best finance broker in Sydney; they can help you negotiate the price and grab the best deal.
- Pre-approval is sufficient to buy a home
Some people think just because they have pre-approval for a mortgage, it is enough to buy a home. However, this is not the case. Despite getting pre-approval or conditional approval, you need to get formal approval. Conditional approval estimates how much you can borrow, but it does not guarantee anything. It depends on the lender if they want to lend anything at all. Hence, keep this in mind while searching for a new home.
- Get a mortgage from your existing bank
When applying for a home loan in Sydney, people often get a mortgage from their current bank. When buying a home for the first time, you must explore different options and compare them to get the best deal. You can use multiple strategies to buy a home in the current competitive market. However, most of the people do not shop around. You should explore different options and then select the right one. You must choose or hire a finance broker to save yourself from the hassle of finding other lenders. They can help bring multiple lenders and provide you with the best deal.
- You only need to pay a 20% deposit or the upfront cost
This is another myth that many people believe to be true. It is true that when buying a home for the first time through a mortgage, you need to pay a deposit, which is approximately 20% of the home value. However, there are more things you need to pay before completing the transaction, such as conveyancing fees and closing costs. A professional finance broker in Sydney can help you understand all the costs you must pay while buying your first home.
- You have to stick with the home loan lender till the agreed duration
It is a myth that you cannot change the lender who provided you with a home loan. If you are getting a better deal, you can always refinance later. It helps you get a better deal at competitive interests, although you must keep in mind that certain fees are associated with refinancing. However, depending on the lender, you can get incentives to refinance.
If you are buying a home for the first time and are overwhelmed with the myths, we are here to help reveal the reality behind these myths. Do not believe the myths; instead, consult the best finance broker, Key Partner Finance, when taking a home loan in Sydney. We can help you in every step and provide the proper guidance so that you can purchase your first dream home.
