Busting Common Homebuying Myths: The Truth About Buying Your First Home

by Kimberley Jade

Buying a home is one of the most exciting—and sometimes intimidating—milestones in life. For many renters, the dream of homeownership feels out of reach, often because of common myths that cloud their understanding of the process. But here’s the good news: many of these myths are just that—myths. Let’s debunk some of the most persistent homebuying misconceptions and set the record straight so you can confidently take the first step toward owning your dream home.

Myth 1: You Need a 20% Down Payment

The Truth: While a 20% down payment can help you avoid private mortgage insurance (PMI), it’s not a requirement. Many loan programs allow for much lower down payments. For example:

FHA Loans: As little as 3.5% down.
VA Loans: No down payment required for eligible veterans and service members.
USDA Loans: No down payment for buyers in eligible rural areas.
Conventional Loans: Some programs require as little as 3% down.

Even if you don’t have a large down payment saved up, homeownership is still within reach.

Myth 2: You Need Perfect Credit to Buy a Home

The Truth: While a higher credit score can help you secure better interest rates, you don’t need a perfect score to buy a home. Many loan programs cater to buyers with less-than-stellar credit:

FHA Loans: Accept credit scores as low as 580 (with a 3.5% down payment).
VA Loans: No minimum credit score, though lenders may have their own requirements.
Subprime Loans: Designed for buyers with lower credit scores.

If your credit isn’t where you want it to be, take steps to improve it, like paying down debt and making payments on time.

Myth 3: Renting is Cheaper Than Buying

The Truth: While renting may seem cheaper in the short term, homeownership is often more cost-effective in the long run. Here’s why:

Fixed Mortgage Payments: With a fixed-rate mortgage, your payment stays the same for the life of the loan, while rent tends to increase over time.
Building Equity: Instead of paying your landlord, you’re investing in your own future.
Tax Benefits: Homeowners may qualify for tax deductions on mortgage interest and property taxes.

When you factor in these benefits, buying a home can be a smarter financial decision.

Myth 4: You Should Wait for the “Perfect” Time to Buy

The Truth: Timing the market is nearly impossible. Instead of waiting for the “perfect” moment, focus on your personal readiness. Ask yourself:

Do I have stable income?
Am I planning to stay in the area for at least a few years?
Do I have savings for a down payment and closing costs?

If the answer to these questions is yes, it might be the right time for you to buy—regardless of what the market is doing.

Myth 5: You Can’t Buy a Home with Student Loan Debt

The Truth: Student loan debt doesn’t automatically disqualify you from buying a home. Lenders look at your debt-to-income (DTI) ratio, which compares your monthly debt payments to your gross monthly income. If your DTI is within acceptable limits (typically 43% or lower), you can still qualify for a mortgage.

Additionally, some loan programs are more forgiving of student debt. For example, FHA loans consider your DTI ratio more flexibly than conventional loans.

Myth 6: You Don’t Need a Real Estate Agent

The Truth: While it’s possible to buy a home without an agent, having a professional on your side can save you time, money, and stress. A real estate agent can:

Help you navigate the complex homebuying process.
Negotiate on your behalf to get the best deal.
Provide access to listings before they hit the market.

Best of all, in most cases, the seller pays the agent’s commission, so it won’t cost you anything to have an expert in your corner.

Myth 7: You Can’t Afford Your Dream Home

The Truth: Your dream home doesn’t have to be a mansion on a hill. It’s about finding a home that meets your needs and fits your budget. Start by prioritizing your must-haves (e.g., location, number of bedrooms) and be open to making compromises. Remember, your first home doesn’t have to be your forever home. It’s a stepping stone to building equity and achieving your long-term goals.

Myth 8: The Process is Too Complicated

The Truth: While buying a home involves multiple steps, it doesn’t have to be overwhelming. With the right team (a real estate agent, lender, and inspector) and a clear understanding of the process, you can navigate it smoothly. Here’s a simplified overview:

Get pre-approved for a mortgage.
Find a home that fits your needs and budget.
Make an offer and negotiate terms.
Complete inspections and appraisals.
Close the deal and get the keys!

Take the First Step Toward Homeownership

Now that we’ve busted these common myths, it’s time to take action. Whether you’re just starting to explore your options or are ready to dive in, homeownership is more attainable than you might think.

Ready to get started? Reach out to a trusted real estate agent or lender today to begin your journey toward owning your dream home.

Your Dream Home Awaits—Don’t Let Myths Hold You Back!

By debunking these myths, we hope you feel empowered to take the next step. Remember, every homeowner was once a renter with questions and concerns. With the right knowledge and support, you can make the leap from renting to owning and start building a brighter future.

What other homebuying questions do you have? Share them in the comments below—we’re here to help!

Ready to take the first step? Download our free First-Time Homebuyer’s Guide for tips, checklists, and expert advice to make your homebuying journey a breeze. DOWNLOAD NOW