5 Home Buying Myths That Could Be Holding You Back

If you've been putting off buying a home because of something you heard from a friend, family member, or a headline that scared you off — I get it. There's a lot of misinformation out there, and I've spent over 30 years helping East Valley buyers separate fact from fiction. So let's clear a few things up.

Here are 5 of the most common myths I hear, and the truth behind each one.

Myth #1: You Need 20% Down to Buy a Home

This is probably the biggest myth out there, and it stops a lot of would-be buyers before they even start looking. The truth is, plenty of loan programs allow for much less than 20% down — some conventional loans go as low as 3%, FHA loans typically require around 3.5%, and VA and USDA loans can offer zero down for those who qualify. Twenty percent down can help you avoid private mortgage insurance, but it's far from a requirement.

Myth #2: Your Credit Must Be Perfect

You don't need a flawless credit score to qualify for a mortgage. Lenders work with a range of credit profiles, and many loan programs accept scores well below what people assume is the cutoff. If your credit isn't where you'd like it to be, a good lender can walk you through exactly what it would take to qualify — and often it's closer than you think.

Myth #3: It's Cheaper to Rent Than Buy

Rent might look cheaper on paper month to month, but it doesn't build you any equity, and here in the Phoenix metro area, rental rates have continued climbing right alongside home values. When you buy, a portion of your monthly payment goes toward something you own. Renting, no matter how long you do it, doesn't.

Myth #4: You Should Always Wait for the Market to Drop

Trying to "time the market" is a strategy that rarely works out the way people hope, even for the pros. Waiting on the sidelines for a market drop can mean missing out on today's rates, today's inventory, and today's opportunity to start building equity. The better question isn't "when will the market drop," it's "am I financially ready to buy now?"

Myth #5: You Can't Buy If You Have Student Loans

Student loan debt does not disqualify you from buying a home. Lenders look at your full financial picture — income, overall debt-to-income ratio, credit history, and savings — not just the presence of student loan debt. Many of my buyers here in Gilbert, Chandler, Mesa, Scottsdale, and Queen Creek have purchased homes while still paying down student loans.

Don't Let Myths Delay Your Goals

Misinformation shouldn't be the reason your homeownership plans stay on hold. If you've been holding back because of one of these myths — or a dozen others you've heard — let's talk through where you actually stand.

Give me a call at (602) 763-6363, no pressure, just honest answers about your path to ownership.

David Thomas, Realtor — HomeSmart Realty Serving Gilbert, Chandler, Mesa, Scottsdale, and Queen Creek for over 30 years

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