Scary Homebuying Myths That Aren’t Actually True

Buying a home can feel overwhelming, especially when there is so much conflicting information out there.

At RWM, we hear quite a few misconceptions about the mortgage process, and unfortunately, some of them keep people from exploring homeownership when they may actually be in a great position to buy.

With Halloween right around the corner, I thought it would be fun to clear up a few of the more common mortgage myths!

This is probably one of the most common misconceptions I hear.

There are quite a few loan programs available that require significantly less than 20% down. In fact, conventional loans can allow as little as 3% down, FHA loans typically require 3.5%, and certain programs offer zero down payment options for eligible buyers.

Putting more money down certainly has its benefits, but it’s not a requirement for most loan programs.

The takeaway: You may not need nearly as much money saved as you think.

Not at all.

Credit is certainly an important part of the mortgage process, but you don’t need a perfect credit score to qualify.

Different loan programs have different credit requirements, and there may be more flexibility than you realize.

Even if your credit isn’t quite where it needs to be today, we can always review your situation and put together a plan to get you there.

The takeaway: Don’t assume you won’t qualify based on your credit score alone.

The mortgage process has become much easier over the years.

Most of the process can now be completed electronically, including the initial application, uploading documents, and signing disclosures.

The initial application typically takes about 15 to 20 minutes, and from there, my team and I help guide you through each step.

There are certainly things that can come up along the way, but having everything organized early in the process can make a huge difference.

The takeaway: Getting a mortgage is probably easier than you think.

This is another common misconception.

Having student loans doesn’t automatically prevent you from qualifying for a mortgage.

What matters is your overall financial picture, including your income, monthly debt obligations, and the loan program we’re using.

There are also different guidelines for how student loan payments are calculated, depending on the loan program.

The takeaway: Student loans don’t necessarily mean you need to put your homebuying plans on hold.

I have this conversation with buyers all the time.

The reality is that nobody knows exactly where mortgage rates are going. If we did, my job would be a whole lot easier.

While rates are certainly an important consideration, I always encourage buyers to focus on their monthly budget, long-term goals, and overall comfort level.

Sometimes waiting makes sense, and sometimes it doesn’t. Everyone’s situation is a little different.

The takeaway: The best time to buy is when it makes financial sense for you, regardless of what the market is doing.

These are actually two separate things.

A preapproval gives you an idea of what you may qualify for based on your income, credit, assets, and other financial information.

A rate lock is what secures your interest rate for a specific period of time, subject to the terms of that lock.

Mortgage rates can change daily, so the rate available when you’re initially preapproved may be different from the rate available when you’re ready to purchase.

The takeaway: Getting preapproved is a great first step, but it doesn’t automatically lock in your interest rate.

It really doesn’t need to be.

Buying a home is a big financial decision, and there are quite a few moving pieces throughout the process.

One of the biggest things I focus on is making sure my clients understand their options and know what to expect as we move forward.

I never want someone to feel like they’re making a decision without having all the information they need.

There will always be questions along the way, but that’s what my team and I are here for.

The takeaway: A good mortgage team can make the process much easier.

One of the things I enjoy most about being part of RWM is helping people understand what is actually possible when it comes to buying a home.

Every situation is different, and there isn’t a one-size-fits-all approach to mortgages. At RWM, we take the time to understand your goals, review your options, and help you build a plan that makes sense for you.

If you’ve been thinking about purchasing a home, even if it’s a year or two down the road, I’m always happy to start that conversation. There is no cost or obligation to talk through your options, and absolutely no pressure to move forward until you’re ready.