Have You Heard These Home Buying Myths? Let’s Set the Record Straight!
When it comes to buying a home, there’s plenty of advice floating around, but not all of it is accurate. In fact, some common home-buying myths can discourage you from moving forward or lead to costly mistakes. Let’s tackle some of the most common misconceptions about homeownership and uncover the truth so you can confidently navigate your journey.
Myth #1: You Need 20% Down to Buy a Home
Truth: Many loans require as little as 3-5% down!
The idea that you need a massive 20% down payment is outdated. Today’s loan programs, like FHA loans, allow you to purchase a home with as little as 3.5% down. Some conventional loans require just 3%, and VA loans often require no down payment at all for eligible veterans and active-duty service members.
If saving up for a large down payment feels daunting, rest assured there are options to make homeownership more accessible.
Myth #2: You Should Wait for Home Prices to Drop
Truth: Timing the market is nearly impossible, and prices tend to rise over time.
Many buyers sit on the sidelines waiting for prices to drop, but the truth is, the market is unpredictable. Even if prices dip slightly, rising interest rates could offset your savings, leaving you with a higher monthly payment.
Instead of trying to time the market, focus on your personal readiness. When you’re financially prepared and find a home that fits your needs and budget, that’s the right time to buy.
Myth #3: You Can Skip Inspections to Save Money
Truth: Inspections protect you from costly surprises.
While skipping inspections might seem like a way to save money upfront or make your offer more competitive, it can lead to expensive regrets later. Inspections provide crucial information about the condition of a home and help you identify potential issues, from roof damage to plumbing problems.
Think of the inspection as an investment in your peace of mind. It’s better to spend a few hundred dollars now than face unexpected repair bills after closing.
Myth #4: You Need Perfect Credit to Buy a Home
Truth: You don’t need perfect credit—just good enough to qualify for a loan.
It’s true that your credit score affects your mortgage options and interest rates, but you don’t need a perfect score to buy a home. Many lenders offer loans to buyers with credit scores as low as 580, and some may even work with scores slightly lower.
If your credit isn’t where you’d like it to be, a lender can help you understand your options and even provide tips to improve your score over time.
Myth #5: It’s Cheaper to Rent Than Buy
Truth: Buying can be more affordable in the long run.
While renting may seem cheaper on a monthly basis, buying a home builds equity over time, which is essentially a form of savings. When you rent, your money goes toward your landlord’s mortgage—not your own future.
Plus, with rent prices steadily increasing in many areas, locking in a fixed-rate mortgage can provide long-term stability and even save you money in the long run.
Myth #6: You Don’t Need a Real Estate Agent to Buy a Home
Truth: A knowledgeable agent is your greatest asset.
With so much information online, some buyers believe they can go it alone. But navigating the home-buying process without an expert can be overwhelming and risky. From negotiating the best price to understanding contracts and contingencies, a skilled agent provides invaluable guidance and support.
Plus, in most cases, buyers don’t pay their agent directly—their commission is typically covered by the seller. So why not take advantage of their expertise?
Myth #7: The Asking Price Is Non-Negotiable
Truth: There’s often room for negotiation.
The listing price is just a starting point. Depending on the market and the seller’s circumstances, there may be opportunities to negotiate on price, closing costs, or even repairs.
A skilled agent will help you assess the market conditions and craft an offer that works in your favor while staying competitive.
Myth #8: You Should Always Buy the Biggest House You Can Afford
Truth: The “right” home fits your needs, not just your budget.
While it’s tempting to stretch your budget for the biggest or most luxurious home, this isn’t always the best choice. Consider your lifestyle, future goals, and maintenance costs.
A home that’s too large can feel overwhelming and expensive to maintain, while one that’s too small may leave you needing to move sooner than expected. The goal is to find a home that balances your needs, budget, and long-term plans.
Myth #9: You Need to Find the “Perfect” Home
Truth: No home is 100% perfect, but it can be perfect for you.
Many buyers get stuck searching for the “perfect” home and end up missing great opportunities. Remember, every home will have some compromises—whether it’s the layout, location, or a lack of updates.
Focus on finding a home that meets your most important criteria, and don’t let minor imperfections hold you back. You can always make changes to make the home your own after you move in.
Myth #10: Once You’re Pre-Approved, You’re Guaranteed a Loan
Truth: Pre-approval is a strong start, but not a guarantee.
A mortgage pre-approval is based on your financial situation at the time you apply. If your financial circumstances change—like taking on new debt or losing income—it could impact your ability to secure the loan.
To avoid surprises, avoid making major financial changes during the home-buying process and stay in close communication with your lender.
Myth #11: You Should Buy a Home as Quickly as Possible
Truth: Take your time to make an informed decision.
While it’s true that some markets move fast, rushing into a home purchase can lead to buyer’s remorse. Take the time to evaluate your options, consider your priorities, and consult with your agent to ensure you’re making the best decision for your future.
Debunking Myths for a Confident Home-Buying Journey
Believing in these myths can cause unnecessary stress or hold you back from pursuing your dream of homeownership. By understanding the facts, you can approach the process with confidence and clarity.
Every home buyer’s situation is unique, and working with an experienced real estate agent ensures you get expert advice tailored to your needs.
About Mari Van Meter
Mari Van Meter is an award-winning Realtor with Berkshire Hathaway HomeServices American Heritage, leading the Fly Home Dragonfly team. Specializing in digital and traditional marketing, Mari focuses on NW Suburban Chicago, especially Arlington Heights. She offers exclusive off-market properties and guarantees satisfaction for buyers and sellers.
Active in her community and at Countryside Church Unitarian Universalist in Palatine, Mari supports local businesses and champions diversity, equity, and inclusion.
For expert real estate guidance, contact Mari at 630-267-1808 or schedule a discovery call at calendly.com/marivanmeter/discovery-call.
