Top 10 Myths About the Homebuying Process (Debunked!)

Buying a home is a huge milestone—exciting, life-changing, and yes, often overwhelming. But let’s be real: the process is packed with myths that can leave you feeling confused or stressed. Whether you're a first-time buyer or just looking for some clarity, cutting through the noise and getting to the facts can make everything so much easier.

Ready to uncover the truth? Here are the top 10 homebuying myths—and the real facts to set the record straight!

1. Myth: You Need a 20% Down Payment

Truth: While a 20% down payment was once the golden standard, it’s no longer a requirement. Many lenders today offer loans with as little as 3% to 5% down, depending on the type of loan and your financial profile. Programs for first-time homebuyers and veterans (such as FHA and VA loans) also provide more flexible options.

Tip: Explore your loan options and calculate what works best for your budget.

2. Myth: You Must Have Perfect Credit to Buy a Home

Truth: Although a high credit score may help you qualify for better mortgage rates, it’s not a deal-breaker if your credit isn’t spotless. Some lenders work with borrowers who have fair or even poor credit, though you may pay a slightly higher interest rate.

Tip: Focus on understanding your credit score and look into programs that cater to first-time buyers with diverse credit histories.

3. Myth: Renting Is Always Cheaper Than Owning

Truth: While renting may seem more affordable up front, homeownership often provides long-term financial benefits like building equity and stability. Plus, with rising rents in many cities, owning a home can sometimes be the more cost-effective option over time.

Tip: Use a rent vs. buy calculator to see which option makes more financial sense for your situation.

4. Myth: You Don’t Need an Agent in the Digital Age

Truth: While online listings and apps have made finding a home easier, a real estate agent brings invaluable expertise. They can negotiate on your behalf, uncover hidden issues during the inspection process, and provide market insights.

Tip: Choose an agent with experience in your desired area and someone you feel comfortable communicating with.

5. Myth: You Can’t Get a Mortgage if You’re Self-Employed

Truth: Self-employed buyers can qualify for a mortgage just like traditional W-2 employees. The difference is that you may need to provide additional documentation to verify your income, such as tax returns or profit-and-loss statements.

Tip: Stay organized and keep clear records of your income to streamline the mortgage process.

6. Myth: The Listing Price Is Set in Stone

Truth: Negotiation is a common part of the homebuying process. Depending on market conditions, you may have room to make an offer below, at, or even above the asking price. A skilled agent can help you determine a competitive offer.

Tip: Research recent sales in the area to understand what similar homes have sold for.

7. Myth: You Should Always Buy the Biggest House You Can Afford

Truth: Your dream home isn’t always the biggest or most expensive one. Consider your lifestyle, long-term goals, and future maintenance costs before stretching your budget for a large property.

Tip: Focus on homes that meet your needs and avoid overextending financially.

8. Myth: New Homes Don’t Need Inspections

Truth: Even new construction homes can have issues, such as plumbing or electrical errors. Scheduling a professional inspection ensures that everything is up to code and ready to go before you move in.

Tip: Treat an inspection as a safeguard to avoid costly surprises down the line.

9. Myth: You Should Wait for the “Perfect” Market

Truth: Timing the real estate market perfectly is nearly impossible. Instead of trying to predict market fluctuations, focus on when it’s the right time for you to buy based on your financial readiness and life circumstances.

Tip: Remember, buying a home is a long-term investment. Trying to wait for the lowest prices could lead to missed opportunities.

10. Myth: The Process Ends When You Close on the Home

Truth: Closing on your home is just the beginning of your homeownership journey. A home will require maintenance, repairs, and budgeting for property taxes and homeowner’s insurance. Being prepared for these ongoing costs is essential.

Tip: Set aside a portion of your budget for home maintenance and unforeseen expenses after closing.