There’s a lot of noise out there when it comes to mortgages. Some of it comes from outdated advice, some from well-meaning friends or family, and some from things people read online that aren’t quite accurate anymore. The problem is, believing the wrong information can delay your plans—or even keep you from buying a home when you actually could.
Let’s walk through a few of the most common mortgage myths I hear and clear them up.
You Need 20% Down to Buy a Home
This is probably the most common misconception out there. Many buyers believe they need to save up a large down payment before they can even think about purchasing.
In reality, there are several loan programs that allow for much lower down payments. Some conventional loans may allow as little as 3% down, and government-backed options can go even lower depending on eligibility.
Whether waiting to save a larger down payment makes sense depends on a variety of personal and financial factors—including home prices in your market, your savings rate, and your overall goals. A conversation with me, and your financial advisor can help you evaluate what timing makes the most sense for your personal situation.
You Need Perfect Credit to Get Approved
Another big myth is that your credit has to be flawless.
While credit score does matter, “perfect” is far from required. Many loan programs are designed to work with a range of credit profiles. What’s more important is the overall picture—your income, your debts, your payment history, and how everything fits together.
I’ve had many conversations with people who assumed they wouldn’t qualify, only to find out they were much closer than they thought.
Pre-Qualification and Pre-Approval Are the Same Thing
These two terms often get used interchangeably, but they’re not the same.
A pre-qualification is usually a quick estimate based on information you provide. A pre-approval goes deeper—it involves reviewing documentation like income, assets, and credit.
That difference matters. Sellers and real estate agents take pre-approvals much more seriously because they carry more weight in a competitive market. Because of that, I typically don’t do pre-qualifications—I focus on pre-approvals so you know where you stand and can move forward with confidence when the right home comes along.
The Lowest Interest Rate Is Always the Best Deal
It’s easy to focus on the interest rate alone, but that doesn’t always tell the full story.
Different loan options come with different structures—closing costs, mortgage insurance, loan terms, and flexibility all factor in. The Annual Percentage Rate (APR), which reflects the broader cost of the loan beyond just the interest rate, can be a more complete way to compare options. What works best depends on your timeline, upfront costs, and long-term goals. This is why looking at the full picture matters more than focusing on the rate alone.
This is where having someone walk through the full picture with you makes a big difference.
You Should Pay Off All Debt Before Applying
Paying off debt can help in some cases—but not always in the way people think.
Your debt-to-income ratio is important, but using all your savings to pay off debt might leave you short on funds for closing costs or reserves. In some situations, it makes more sense to keep cash on hand and structure the loan appropriately.
There’s no one-size-fits-all answer here.
Renting Is Always Cheaper Than Owning
This one depends heavily on your situation and your market.
In many cases, monthly mortgage payments can be comparable to rent—especially over time. The key difference is that with a home, you’re building equity instead of paying a landlord.
That said, homeownership comes with responsibilities and costs, so it’s important to look at the full picture, not just the monthly payment.
You Should Wait for Rates to Drop Before Buying
Trying to time the market—whether it’s home prices or interest rates—is incredibly difficult.
What matters more is whether the purchase makes sense for your situation right now. Rates can change, and in many cases, buyers have options to refinance later if conditions improve.
Waiting for the “perfect” moment can sometimes mean missing a good opportunity.
There’s a lot of misinformation out there, and it can make the process feel more complicated than it really is. The truth is, most people are closer to being able to buy a home than they think—they just haven’t had someone walk them through it clearly.
If you’ve got questions about your situation, or you’re trying to sort through what’s true and what’s not, I’m always happy to have a conversation. You can reach out anytime through my website, and we can walk through your options together in a way that actually makes sense for you.
