Buying a home is exciting—but it’s also full of misinformation. Over the years, I’ve heard many myths from clients that can hold them back from starting the process. Let’s clear the air so you can move forward with confidence.
Myth #1: You need 20% down to buy a home
This is one of the biggest misconceptions in real estate. While a 20% down payment helps you avoid private mortgage insurance (PMI), it’s far from a requirement. Many programs, like FHA loans, only require 3.5% down, and VA loans often require no down payment at all.
Myth #2: Only perfect credit scores get approved
A perfect score isn’t necessary to buy a home. FHA loans can work with scores as low as 580, and other programs have flexible guidelines for borrowers with less-than-perfect credit. Your score impacts your options, but it’s not a hard stop.
Myth #3: Pre-qualification and pre-approval are the same thing
They sound similar, but they’re not. A pre-qualification is a quick estimate of what you might be able to borrow, often based on self-reported information. A pre-approval involves a deeper review of your finances, making it a stronger tool when making offers.
Myth #4: The lowest advertised rate is always the best deal
Rates are just one part of the equation. Loan terms, fees, and closing costs can make a “low” rate more expensive in the long run. Always look at the full picture before deciding.
Myth #5: Self-employed borrowers can’t qualify
If you work for yourself, qualifying can be different—but not impossible. Non-QM loan programs, bank statement loans, and other creative financing options are designed for self-employed professionals and entrepreneurs.