Myths
Homebuying myths, debunked
A lot of "common knowledge" about buying a home is outdated, oversimplified, or just wrong. Here's what's actually true.
Myth
You need a 20% down payment to buy a home
Fact
Plenty of loans require far less. FHA loans allow as little as 3.5% down, some conventional programs go as low as 3%, and VA or USDA loans can require 0% for eligible buyers. Putting down 20% just lets you skip mortgage insurance — it's not a minimum to qualify.
Myth
Pre-qualified and pre-approved mean the same thing
Fact
Pre-qualification is a quick estimate based on what you self-report, with no verification. Pre-approval means a lender has actually checked your income, assets, and credit. Sellers and agents take pre-approval far more seriously — in competitive markets, an offer without one often isn't even considered.
Myth
Your credit score has to be near-perfect
Fact
Conventional loans typically want 620+, but FHA loans can go as low as 580 — or 500 with a larger down payment. A great score gets you a better rate, but it's not a gatekeeping requirement at the level most people assume.
Myth
You should borrow the full amount you're approved for
Fact
A lender's approval reflects a debt-to-income formula, not your actual comfortable budget. It doesn't fully account for property taxes, insurance, maintenance, or how you actually want to live. Many buyers are better off targeting a payment well under their maximum approval.
Myth
Renting is always "throwing your money away"
Fact
Whether buying beats renting depends on how long you'll stay, local appreciation, and what you'd otherwise do with the cash tied up in a down payment and closing costs. For short stays or in slow-appreciation markets, renting and investing the difference can come out ahead. Run your own numbers — see the rent vs. buy calculator.
Myth
If a home looks fine, you can skip the inspection
Fact
Foundation cracks, outdated wiring, roof damage, hidden water intrusion, and pest issues are rarely visible to an untrained eye. A home inspection is one of the cheapest forms of insurance you'll buy during the entire process.
Myth
All real estate agents are basically interchangeable
Fact
Experience, local market knowledge, negotiation skill, and responsiveness vary enormously between agents. The right agent for your specific area and situation can meaningfully change your outcome — it's worth being selective.
Myth
Closing costs are mostly the agent's commission
Fact
Agent commission is typically negotiated separately and often paid by the seller. Closing costs are a distinct set of fees — title insurance, lender charges, recording fees, and in some states, transfer taxes — usually 2-5% of the loan amount.
Myth
First-time buyers have to cover the down payment entirely alone
Fact
Many states, local housing agencies, and even some employers offer down payment assistance grants or low-interest loans for qualifying first-time buyers. It's worth checking what's available in your area before assuming you need the full amount saved yourself.
Myth
A fixed-rate mortgage means your monthly payment never changes
Fact
Your principal-and-interest payment stays fixed for the life of the loan — but if your taxes and insurance are escrowed, your total monthly payment can still rise or fall as those costs change year to year.
This page is educational and general in nature. Specific rules vary by lender, loan program, and state — always confirm details with a licensed professional before making decisions.