Name: Kay Houghton & Associates
Price range: $

Do not let outdated information keep you from becoming a homeowner.

Buying a home is one of the biggest financial decisions most people will make. Unfortunately, many prospective buyers enter the process relying on advice they have heard from friends, family members, or social media that may be incomplete or outdated.

As a mortgage professional, I often speak with buyers who assume they need more savings, better credit, or the perfect interest rate before they can even consider purchasing a home. In many cases, they are surprised to discover that they may have more options than they realized.

Here are five common home financing myths that could be standing between you and your next home.

Myth #1: You Need a 20% Down Payment

A 20% down payment can offer certain benefits, including the ability to avoid private mortgage insurance on many conventional loans. However, it is not required to purchase a home.

Depending on the loan program and your qualifications, you may be able to purchase a home with a much smaller down payment. Some conventional loan programs allow eligible buyers to put down as little as 3%, while FHA financing may be available with a down payment as low as 3.5%. Certain qualified buyers may also have access to low or no down payment programs.

Waiting years to save 20% could delay your plans unnecessarily, especially when there may be financing options designed to help you purchase sooner.

The reality: You may not need as much money upfront as you think. A personalized mortgage consultation can help you understand which down payment options may be available to you.

Myth #2: You Need Perfect Credit

Many buyers assume they need a credit score in the high 700s or 800s to qualify for a mortgage.

While a higher credit score may help you qualify for more favorable loan terms, it is not the only factor lenders consider. Your income, debt, down payment, employment history, credit history, and chosen loan program can all play a role in the approval process.

Mortgage options are available for a wide range of credit profiles, and credit requirements can vary depending on the lender and loan type.

The reality: Less-than-perfect credit does not automatically prevent you from becoming a homeowner. I can review your financial situation, explain potential options, and recommend steps that may help strengthen your application.

Myth #3: Getting Pre-Approved Will Ruin Your Credit

Some buyers delay getting pre-approved because they are worried that a mortgage inquiry will significantly lower their credit score.

A lender will typically review your credit during the pre-approval process, which may result in a small, temporary change. However, the impact is generally limited, especially when compared with the value of understanding your purchasing power before you begin touring homes.

Pre-approval can help you establish a realistic price range, estimate your potential monthly payment, and identify any issues that should be addressed early. It can also strengthen your offer by showing sellers that you have already taken important steps toward securing financing.

The reality: The benefits of getting prepared usually outweigh the small, temporary effect of a mortgage inquiry.

Myth #4: You Should Wait Until Interest Rates Drop

Trying to time the market can be risky because future interest rates, home prices, and inventory levels are impossible to predict with certainty.

When rates decrease, buyer demand may increase as more people reenter the market. That additional competition can lead to higher prices, multiple-offer situations, and less negotiating power.

Rather than focusing only on the interest rate, it is important to consider the full picture. Does the estimated monthly payment fit comfortably within your budget? Does buying support your long-term goals? Are there loan programs, seller concessions, or other financing strategies that could help make the purchase more manageable?

Refinancing may be an option if rates decrease in the future, although eligibility is not guaranteed and refinancing typically involves additional costs.

The reality: The right time to buy depends on your financial situation, lifestyle, available homes, and long-term plans – not solely on an attempt to predict interest rates.

Myth #5: Online Mortgage Calculators Tell the Whole Story

Online mortgage calculators can be helpful starting points, but they rarely provide the full picture.

Many calculators focus primarily on principal and interest and may not fully account for property taxes, homeowners insurance, mortgage insurance, condo or HOA fees, and other expenses. They also may not factor in down payment assistance, seller-paid closing costs, lender credits, or specialized loan programs.

Two buyers purchasing homes at the same price could have very different monthly payments depending on their down payments, interest rates, credit profiles, loan programs, property taxes, insurance costs, and community fees.

The reality: A personalized mortgage estimate is far more accurate than a general online calculation.

The Bottom Line

Every buyer’s financial situation is different. Before assuming you need more savings, better credit, or a lower interest rate, speak with an experienced mortgage professional who can review your circumstances and explain your options.

Many buyers who thought they needed to wait have discovered that they were ready much sooner than expected.

If you have questions about financing, I would be happy to review your options, explain available loan programs, and help you create a strategy that supports your goals. Sometimes, one conversation is all it takes to turn “maybe someday” into “welcome home.”