A surprising number of people put off buying a home based on information that simply isn't accurate. Some of these myths are outdated; others are just misconceptions that took on a life of their own. Let's clear a few of them up.
Myth: You Need 20% Down
This one gets repeated so often that many buyers assume it's a law. It isn't. While putting down 20% lets you avoid private mortgage insurance (PMI), plenty of loan programs require significantly less — sometimes as low as 3%, and some government-backed options require nothing down for qualified borrowers. Your specific options depend on your financial profile and the type of loan you're pursuing.
Myth: Your Credit Score Has to Be Excellent
A stronger credit score does open up better loan terms, but it doesn't have to be perfect. Different loan programs carry different credit requirements, and some are specifically designed to serve buyers who are still building or rebuilding their credit. If you're not sure where you stand, a mortgage professional can review your credit with you and help you understand your options.
Myth: Pre-Qualification and Pre-Approval Are the Same Thing
They're not. Pre-qualification is typically a quick, informal estimate based on self-reported numbers. Pre-approval goes deeper — a lender actually reviews your income, credit, and financial documents. That distinction matters when you're making offers in a competitive market, because sellers often take pre-approval more seriously.
Myth: The Lowest Rate Is Always the Best Deal
Rate is important, but it's not the whole story. Some lower-rate loans come with higher fees, discount points, or restrictive terms. Two loans with nearly identical rates can have meaningfully different total costs over time. Always look at the annual percentage rate (APR) and the full loan estimate, not just the advertised rate.
Myth: Renting Is Always the Smarter Financial Move
This depends entirely on your situation, goals, and local market. Renting offers flexibility and fewer upfront costs — that's real. But buying builds equity over time, keeps your housing costs more predictable, and gives you something that grows in value. Neither choice is universally right. The best answer depends on how long you plan to stay, what you can afford, and what matters to you.
A Better Starting Point
The most useful thing you can do is get actual information about your specific situation, rather than making decisions based on what you've heard. Start with a pre-approval conversation — it costs nothing and tells you exactly where you stand.
