14. Homebuying Misconceptions

Common homebuying misconceptions are everywhere, and some are repeated so often they sound like facts, even when they are not. You have probably heard things like “you must have 20% down,” “you need perfect credit,” or “you should always wait for spring.” There are low- and no-down-payment options, a wide range of credit scores can qualify, and buying in the off-season can sometimes mean less competition. The “best” time to buy is when you are financially ready and you have found a home that truly fits your needs, not just any house.

Down Payments and Credit

Many loan programs allow down payments as low as 0–3%, if your loan amount is within local conforming limits. If you put less than 20% down on a conventional loan, you will usually pay Private Mortgage Insurance, but 20% is not required. You also do not need perfect (850) credit to buy. Many conventional loans accept scores around 620–640, and FHA loans often accept lower scores. Higher scores typically qualify for better interest rates, but “perfect” credit is not necessary.

Renting, Taxes, and Total Costs

Buying is not always cheaper than renting. Renting can be cheaper in the short term, and owning comes with additional costs like maintenance, repairs, property taxes, insurance, and possibly HOA fees. Renting is not “just throwing money away,” either. Renting can offer flexibility, lower upfront costs, and minimal maintenance obligations. Tax deductions do not guarantee savings for every homeowner since mortgage interest and property tax deductions only help if you itemize and your deductions exceed the standard deduction.

Timing, Pre-Approval, and Mortgage Myths

Spring has more listings, but it also has the highest competition. Fall and winter can offer fewer buyers, more negotiating power, and motivated sellers. Pre-approval helps you understand your budget and shows sellers you are serious and qualified, and many agents and sellers expect a pre-approval letter before considering your offer. Every home involves tradeoffs, so the perfect house does not exist. Adjustable-Rate Mortgages can offer lower initial rates and may save money if you do not plan to stay long-term, and PMI does not last forever on most conventional loans.

Final Thoughts

Other misconceptions, like “renting is always throwing money away,” “the perfect home is out there,” or “you must sell your current home before buying another,” depend heavily on your situation. Homebuying decisions are strongest when they are based on financial readiness, good information, and realistic expectations. When you replace myths with facts, you create a smoother path to the right home and a more confident closing.