10 Home Buying May Scare Your Myth (but Shouldn’t)

Buying a home is one of your biggest financial moves ever. With today’s affordability fear, it is also one of the easiest thoughts. Myths and assumptions have put many possible buyers off the market.

Insights with Homelight National Survey As well as feedback from hundreds of real estate agents across the country, we reveal 10 myths of home purchases that may shock your search and the truth behind it.

Myth #1: Waiting for mortgage rates to drop more

myth: It is best to stick with it until the price drops further before buying the house.

What is true: Although interest rates have fallen – the Federal Reserve sends a signal More cuts – Waiting is not always the wisest move. According to the recent Residence lender insights surveyonce interest rates drop enough to take action by more buyers, house prices are expected to jump 13%, and inventory may tighten. Investigation found On-site buyers are waiting for interest rates to reach 5.75%. Experts warn that focusing solely on interest rates can mean missing out on the right home at the right time.

“learn more: Should I buy a house or wait? (10 questions to ask first)

Misunderstanding 2: You need 20% down payment

myth: You cannot buy a home unless you save all 20%.

What is true: Many loan plans require much less. FHA and regular loans usually allow 3%-5% decreaseand VA and USDA Loans usually require 0%. According to the National Association of Real Estate Brokers, the average down payment for first-time home buyers is about 9%significantly lower than 20% down payment myth.

“learn more: House down payment calculator

Misunderstanding 3: Buy the most expensive home you can approve

myth: If your lender approves you, you can afford it comfortably.

What is true: The pre-approved amount represents the maximum value the lender thinks you can borrow, not the burden on your comfort. There are risks in extending your budget to the limit. Your monthly housing expenses can consume a lot of income, with little savings, emergencies or discretionary expenses like travel and entertainment.

“learn more: How many houses can I afford? (House Affordability Calculator)

Myth #4: You must have the perfect credit to buy

myth: Only spotless buyers can get a mortgage.

What is true: high Credit Score Helpful, but it’s not a deal. FHA Loan Allowed Scores As low as 580many regular lenders approved in the 600s. Some lenders may offer loan plans with lower credit score requirements based on your situation. Improve your credit You can lower your interest rates, but imperfect credit won’t lock you out.

“learn more: What is the minimum credit score for buying a home?

Misunderstanding 5: Prequalification guarantees loan approval

myth: If you are eligible for a mortgage in advance, you can guarantee the loan amount and have confidence in shopping.

What is true: Prequalification review Just a rough estimate based on self-reported information. It does not involve an in-depth review of your financial situation and is therefore far from a guarantee. even Pre-approval – More powerful steps for lender verification incomecredit and assets – not final approval. Your loan is not safe until the coverage is completed. If your financing is passed, relying too much on prequalification will disappoint you.

“learn more: How to increase the amount of pre-approved

Myth #6: You don’t need a home check

myth: In a highly competitive market, some buyers may think skipping the check can save money or help them win their homes.

What is true: There is risk to abandon this step. examine Hidden issues that were not obvious during the display process (e.g., wiring failure, roof damage, foundation problems). Without one person, you are buying a home, including expensive issues that the seller may not disclose. this Several hundred dollars You can save thousands of dollars on the inspection.

“learn more: Do I need a home check?

Myth #7: You don’t need a buyer’s agent

myth: With an online list, buyers can handle the process by themselves.

What is true: one Buyer’s agent More than just MLS access is provided – they mark red flags, guide you through inspections and negotiate on your behalf. Open data shows that top agents often save thousands of people through negotiations and offers. Action alone can put you at risk and missed opportunities.

“learn more: Why hire a buyer agent?

Myth #8: All fixes matter

myth: Older homes and fixtures always save you money.

What is true: A lower initial price can make older homes and fixer buildings look like bargains, but the myth that they always save you money is wrong. Unexpected and expensive issues are common (such as outdated wiring or pipes), and the cost of renovation can quickly outweigh any initial savings, turning what you consider a deal to be a long-term “Money pit” project.

“learn more: What is Fixer-upper home and this is for you?

Misunderstanding 9: You should give up on competition unexpected events

myth: The only way to win the home you want is to give up examine or Financing Emergency.

What is true: Giving up unexpected situations makes your offer more competitive in a tough market, but it puts you in a significant financial responsibility. Not recommended for first-time buyers or older homes without professional advice. A smarter move is to shorten the emergency schedule, providing Higher moneyor obtain failed financing. Only consider eliminating accidents if you have financial mats to make up for potential surprises.

“learn more: Should I give up evaluating the unexpected?

Myth #10: Rent is always cheaper than buying

myth: Renting a house is always more affordable than buying it.

What is true: Although rents can be cheap for short term in some markets (Like a large metropolis), buyers make fixed payments over time to establish equity and gain stability. and Rents rise faster than inflation In many areas, monthly mortgage payments may end up being less than rent. Homeowners also enjoy tax benefits. Purchasing is both a financial and lifestyle decision, but it is not automatically expensive.

“learn more: When does it make sense to rent a house with your own meaning?

Reward Myth: You can’t buy it before selling

myth: Most homeowners buyers believe they have to sell their current home before they can buy the next home.

What is true: If you already own a home, then a program like Homelight Buy before selling Let you unlock equity first buy the next house and then sell it on a schedule. These modern solutions simplify the process from start to finish. You can make one Non-requisition discount In your new home, move only once. watch This short video Check how it works.

“learn more: What is a purchase before you sell your plan?

Don’t let myths bother your house search

Buying a mythical home can scare you to wait too long, overspent or miss out in the right home. The truth is, every market and buyer is different. and Expert guidancereliable data and the right tools, you can determine the best approach for you in the current situation, or plan for the future.

If you are considering buying your first home, or is it time to upgrade or Reduce sizeHomelight is here to help you. Our freedom Proxy Match The platform analyzes millions of transactions to connect you with your local agent.

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Title image source: (kzlobastov/poadephotos)