Buying a home is one of the biggest financial decisions you’ll ever make—but if you’re relying on outdated or incorrect information, you could be holding yourself back. As mortgage brokers, we hear a lot of misconceptions that stop people from taking the first step toward homeownership.
Here are four of the most common mortgage myths we hear—and why you shouldn’t let them derail your homebuying goals this summer.
Myth #1: You Need a 20% Down Payment to Buy a Home
While a 20% down payment can help you avoid private mortgage insurance (PMI), it’s far from required. In fact, many homebuyers—especially first-time buyers—can put down much less.
Loan programs like FHA loans allow for as little as 3.5% down, and VA loans (for veterans and active-duty service members) require no down payment at all. There are even down payment assistance programs available at the state and local levels. Don’t let this myth stop you from starting the process.
Myth #2: You Need Perfect Credit
A high credit score certainly helps, but you don’t need a 750+ score to qualify for a mortgage. Many lenders approve buyers with credit scores as low as 580, especially with FHA loans.
Even if your credit isn’t perfect, a good mortgage broker can help you explore your options—and even guide you on steps to improve your score, if needed.
Myth #3: It’s Better to Wait for Home Prices to Drop
Waiting for a perfect “market dip” is a gamble. While it’s true that housing markets go through cycles, trying to time the market can leave you renting longer than necessary and missing out on equity growth.
Home values tend to rise over the long term, and if interest rates go up while you wait, your buying power could shrink. The right time to buy is when you’re financially ready—not when the headlines say so.
Myth #4: Getting Pre-Qualified is the Same as Pre-Approval
Pre-qualification is a quick estimate based on self-reported information. Pre-approval, on the other hand, involves a credit check and verification of income, assets, and debts.
In a competitive summer market, a pre-approval letter tells sellers you’re serious—and could make the difference between winning or losing your dream home. Always aim for a pre-approval before you start shopping.
Don’t Let These Myths Hold You Back
With June being one of the most active months for buying a home, now is the perfect time to educate yourself, bust through misinformation, and move forward with confidence. If you’re thinking about buying this summer, let’s talk. Contact us for a free consultation and find out what you really qualify for—no myths, just facts.
