Mortgage Myths vs. Facts

Separating Truth from Fiction in the Home Loan World

There’s a lot of confusion out there about mortgages—and unfortunately, some of those myths could hold you back from buying the home of your dreams. Let’s break down the most common mortgage myths and uncover the real facts so you can make smarter, more confident decisions.

🧾 Myth #1: You Need a 20% Down Payment

✅ Fact: You can buy a home with as little as 3% down (or even 0% for qualified buyers).

Many people think 20% down is the only option, but today’s lenders offer a variety of loan programs:

• FHA loans: As low as 3.5% down

• Conventional loans: Some allow 3% down

• VA & USDA loans: 0% down for eligible buyers

💡 Don’t let this myth keep you renting longer than you need to.

💳 Myth #2: You Need Perfect Credit to Qualify

✅ Fact: You don’t need a perfect score—just a qualifying one.

While a higher credit score helps you get better interest rates, you can still get approved with:

• FHA loans: Minimum score around 580

• Conventional loans: Often accept 620+

📉 Your credit doesn’t need to be spotless—just strong enough.

🔄 Myth #3: Pre-Qualified = Pre-Approved

✅ Fact: These are two very different steps.

• Pre-qualification is a rough estimate based on basic info.

• Pre-approval involves a full financial review and is taken more seriously by sellers.

📎 Always go for pre-approval when you’re ready to shop.

💼 Myth #4: The Lowest Rate is Always the Best Deal

✅ Fact: The total cost of your loan matters more than the rate alone.

A low interest rate may come with:

• High closing costs

• Large upfront fees

• Less flexibility over time

🔍 Compare the full loan estimate, not just the headline rate.

💰 Myth #5: Renting is Cheaper Than Buying

✅ Fact: Owning can build equity—and save you money long-term.

While renting might seem cheaper month-to-month, homeownership:

• Builds equity over time

• Locks in your monthly payment

• Offers tax benefits in many cases

📈 Buying is an investment in your future.

📆 Myth #6: It’s Not the Right Time to Buy a Home

✅ Fact: The right time depends on your financial readiness—not market headlines.

Trying to time the market perfectly is tough—even for the pros. If:

• You have a stable income

• You’re ready for the responsibility

• You’ve saved for upfront costs

…then it might be your right time to buy.

🔍 Myth #7: You Can’t Shop Around for Mortgages

✅ Fact: You should shop around—and it won’t hurt your credit if done within a short window.

Get multiple quotes to:

• Compare rates and fees

• Negotiate better terms

• Find a lender that fits your needs

💬 Treat a mortgage like any big purchase—shop smart!

Ready to Talk Real Numbers?

Whether you’re just exploring or ready to apply, we’re here to clear up the confusion and walk you through your options.
👉 Contact Us or Get Pre-Approved today!