So you’re buying your first home, and you’re probably pretty excited and pretty nervous. There are so many first home myths out there that it’s sometimes difficult to know what to believe or where to begin. Let’s look at some of the most common myths of first home buying and sort fact from fiction as you take steps towards landing that perfect first property.

Myth #1: Your chances of getting on the property ladder today are slim

If you’ve been keeping up with your financial news recently, you probably have a pretty grim view of the Australian economy and of the hopes for first home buyers. You might even think you have no chance of getting on the property ladder at all in today’s financial climate and with your current financial situation.

The Reality: There are plenty of options at your disposal

There are lots of options available to you when buying a first home. Yes, the recent news from the economy isn’t great, but property transactions are a constant right across society — people always need homes, regardless of what the market is doing.

With this in mind, don’t get despondent. Speak to the Sydney Brokers team to explore your options — even if you have not saved a 20% deposit, we may be able to help you find what you need.

Myth #2: You need to find your dream home before you begin

First home buying can be seriously stressful, but it’s also exciting! It’s natural to want to dive straight in and find that perfect home, and then start the purchasing process. Many first home buyers find themselves house hunting before they have done anything else — but is this the right idea, or is it just another first home myth?

The Reality: There are other things you should do before you find the right property

Finding your dream home should not be the first thing on your list. Instead, it would be best if you improved your credit to get the best possible home loan for your purposes, and you may want to get pre-approval on a mortgage to lock in a good interest rate.

Your home loan broker can help you get everything in order before you get started. If you look for the property first, you might find that you lose out on this property if there is any delay in the credit or application process, so you may have to start again from scratch anyway.

Myth #3: The asking price is the price

You have everything in place and find a property that meets your needs. However, the listed asking price is slightly out of reach for you. Oh well, you’ll have to look for another option then, something that is a little closer to your budget. Is this really the case, or is this another first home myth?

The Reality: The final price can change if there are other factors involved

If you walk into a shop and pick up a dollar chocolate bar, the storeowner isn’t going to be too happy if you offer them 90 cents. The housing market, however, is a bit different.

If you have good credit and have received pre-approval on a mortgage, you are an attractive option for the seller, and you may find them willing to drop the price a little to achieve a quick sale. Your agent will handle the negotiations for you, and the seller won’t always budge, but it’s worth bearing in mind that the asking price is not always the final selling price.

Myth #4: Your only upfront cost is your deposit

Once you’re ready to buy your first home, you’ll need to make a deposit. This is often 20% of the property’s value, although purchasing a home with a smaller deposit is possible. But is this the only upfront payment you’ll need to make?

The Reality: There are other fees you’ll need to pay to purchase a property

Unfortunately, there will be other costs involved, and you may need to pay some of these upfront. For example, closing costs and conveyancing fees may need to be paid before you can complete the transaction. Working with professional agents and brokers can help you better understand the cost of buying a first home.

Find the home loan you need with Sydney Brokers

Here at Sydney Brokers, we help first home buyers find the home loan and mortgage products they need to get their foot on the property ladder and fulfil the dream of home ownership. Reach out to our team today, and let’s discuss your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.