10 Myths About Buying a Home – Debunked
10 Myths About Buying a Home – Debunked
By Allen Deaver – Asset Realty
Buying a home is one of the biggest decisions most people will ever make. Unfortunately, it’s also one of the most misunderstood. Over the years, I’ve helped many clients navigate the real estate process, and I’ve seen firsthand how misinformation can hold people back from making smart decisions.
Let’s clear the air. Here are 10 common myths about buying a home—along with the truth you need to know.
1. You Need a 20% Down Payment
The Truth: While putting 20% down can help you avoid private mortgage insurance (PMI), it’s not a requirement. Many loans—including FHA, VA, and certain conventional programs—allow for as little as 3% down. VA loans even offer 0% down for eligible veterans.
2. You Must Have Perfect Credit
The Truth: You don’t need a spotless credit score to qualify for a mortgage. Some loan programs accept credit scores in the 500s, although better scores typically mean better interest rates. Lenders look at the full picture—credit, income, debt, and savings.
3. It’s Cheaper to Rent Than Buy
The Truth: Renting may seem cheaper in the short term, but over time, you’re building someone else’s equity. With a fixed-rate mortgage, your payment stays predictable while your home builds value. Plus, homeowners can benefit from tax deductions and long-term appreciation.
4. You Can’t Buy With Student Loan Debt
The Truth: Having student loans doesn’t automatically disqualify you from buying a home. What matters is how much debt you carry compared to your income—this is called your debt-to-income ratio (DTI). If it’s within acceptable limits, you can still qualify for a mortgage.
5. The First Step Is House Hunting
The Truth: The real first step is getting pre-approved by a lender. This gives you a clear budget, shows sellers you're serious, and helps avoid disappointment later. Shopping before knowing what you can afford is putting the cart before the horse.
6. All Lenders Are the Same
The Truth: Not all lenders offer the same loan products, rates, or fees. It’s wise to shop around and compare offers. A trusted local lender can also help you find down payment assistance programs you might not be aware of.
7. You Can’t Negotiate New Construction Prices
The Truth: Builders may seem firm on price, but there’s often room for negotiation—especially when it comes to upgrades, closing costs, or incentives. An experienced agent can help you navigate the builder's process and advocate for you.
8. You Don’t Need an Agent When Buying
The Truth: A good buyer’s agent is your advocate, advisor, and negotiator. Best of all, their services are typically paid for by the seller. Working with an experienced agent like myself means you’ll avoid common pitfalls and make informed decisions.
9. You Should Buy the Most House You Can Afford
The Truth: Just because a lender approves you for a certain amount doesn’t mean you should spend it all. Consider your lifestyle, savings goals, and unexpected expenses. Owning a home should bring peace of mind—not financial stress.
10. You’ll Know “The One” Instantly
The Truth: While love at first sight can happen, the perfect home isn’t always obvious right away. Focus on the things that matter most—location, layout, and long-term value. Cosmetic issues can be changed, but a bad location or poor layout is harder to fix.
Final Thoughts
The homebuying process doesn’t have to be intimidating. With the right information and the right support, you can move forward with confidence. If you’re thinking about buying a home in Central Texas, I’d be honored to guide you every step of the way.
Have questions or ready to start your journey?
Reach out to me—Allen Deaver at Asset Realty—and let’s make your dream of homeownership a reality.
