Mortgage Myths vs. Facts

Buying a home comes with a lot of opinions, stories, and “rules” that aren’t always true.

Let’s sort through some of the most common mortgage myths so you can feel more confident about what it really takes to become a homeowner—whether it’s your first place or you’re getting back into the market after a few years.

Myth: A first-time homebuyer means you have never owned a home.
Fact: A first‑time buyer is someone who “has not had an ownership interest in a principal residence in the last three years.

Myth: You need a large down payment to buy a home.
Fact: Many loan programs allow buyers to get into a home with a much smaller down payment—sometimes as low as $1,000, depending on qualifications and program availability.

Myth: You need perfect credit to purchase a home.
Fact: While higher credit scores can help you secure better terms, some loan programs may allow borrowers to qualify with a credit score as low as 580. In some cases, a lower score may be considered with a larger down payment.

Myth: Renting is always cheaper than owning.
Fact: Monthly mortgage payments can sometimes be comparable to rent, and homeownership allows you to build equity over time rather than paying a landlord. You also have the potential to rent out a room in your home to a friend or traveling nurse.

Myth: Getting pre-qualified isn’t necessary before house hunting.
Fact: Prequalification helps you understand your budget, strengthens your offer, and shows sellers you’re a serious buyer.

Myth: You have to use a 30-year mortgage.
Fact: There are a variety of loan terms available, including 10-, 15-, 20-, and 25-year options, allowing you to choose what best fits your financial goals.