The dream of homeownership can often feel like an overwhelming mountain to climb. Between navigating the market, saving for a down payment, and understanding mortgage terms, many would-be buyers find themselves stuck, unsure of their next step. But what if the roadblocks holding you back are just myths? That’s right—misconceptions about home-buying might be sabotaging your journey before it even begins.
Here, we’ll debunk four of the most common home-buying myths so you can move forward with confidence.
Myth 1: You Need a 20% Down Payment to Buy a Home
For years, many have believed that unless you have 20% of the home’s price saved, you can’t even consider buying. While having a larger down payment can reduce your monthly payments and eliminate private mortgage insurance (PMI), it’s far from a requirement.
The Truth:
There are numerous loan programs available that require as little as 3-5% down, like FHA and conventional loans. Veterans and active-duty military members may qualify for VA loans, which offer zero down payment options. Speak with a trusted lender to explore your options—you might be closer to homeownership than you think.
Myth 2: Renting Is Cheaper Than Owning
It’s easy to assume that renting is always the more affordable option, especially when you hear horror stories about rising property taxes or surprise home repairs. But renting can also come with its own set of challenges, like annual rent increases and no return on your investment.
The Truth:
Owning a home builds equity over time, meaning your monthly payments go toward your long-term wealth. Depending on your market, owning a home may even have comparable monthly costs to renting, especially with today’s competitive interest rates. Plus, many homeowners benefit from tax advantages, which renters miss out on entirely.
Myth 3: You Should Wait for the “Perfect” Market
Many prospective buyers put their plans on hold, waiting for home prices to drop or interest rates to improve. The fear of “buyer’s remorse” keeps them from taking action, but this wait-and-see approach often leads to missed opportunities.
The Truth:
The perfect market doesn’t exist. Real estate markets are always fluctuating, and trying to time them perfectly is nearly impossible. Instead, focus on what you can control—your financial readiness, your housing needs, and your ability to commit to a home long-term. In most cases, the best time to buy is when you’re ready, not when the market seems ideal.
Myth 4: You Shouldn’t Buy a Home Without Perfect Credit
Many first-time buyers believe their credit needs to be spotless to qualify for a mortgage. While a higher credit score can help secure better rates, a less-than-perfect score isn’t necessarily a dealbreaker.
The Truth:
Lenders offer a wide range of options for buyers with varying credit scores. FHA loans, for example, allow scores as low as 580, and some lenders work with buyers to improve their credit before closing. By taking steps like paying down debt and avoiding new credit inquiries, you can boost your creditworthiness and qualify for a mortgage sooner than you think.
Final Thoughts: Bust the Myths and Take Action
These common myths often keep hopeful buyers on the sidelines, believing homeownership is out of reach. But the truth is, with the right guidance, preparation, and mindset, you can make home-buying a reality.
Start by consulting with a real estate professional who understands your unique situation. Whether it’s finding the right loan program, determining how much home you can afford, or navigating the market, having the right team in your corner makes all the difference.
Ready to bust through the myths and get unstuck?
Let’s build your foundation for real estate success—together.
The ATD Letter 