If you’re dreaming of homeownership, those dreams might be interrupted from time to time by fears like, “Is now a bad time to buy a house?” or “Will I even qualify for a mortgage?”
If so, you’re not alone. The truth is there’s a mountain of outdated and often contradictory information out there that can make the journey toward homeownership feel overwhelming.
In this article, we’ll debunk five common homebuying myths that have likely muddied the waters for you, providing clear, factual guidance as you take confident steps toward realizing your dream of owning a home.
At first glance, it might seem like renting is the more budget-friendly option, especially when you consider initial costs like down payments and closing fees. But if you dig a little deeper, you’ll find that the long-term financial benefits often tilt in favor of homebuying.
Your mortgage payments might be very similar to what you currently pay in rent, but with a critical difference: you’re likely investing in an appreciating asset. That means, as a homeowner, you’re putting money into a property that is likely to increase in value over time rather than giving it to a landlord and getting nothing back.
Tax incentives and the potential for property value growth further strengthen the case for homeownership as a savvy long-term financial decision.
To dispel this homebuying myth for yourself, click here to use our Rent or Buy Calculator.
You don’t need a “perfect” score to qualify. A high credit score may help you secure a low rate, but it’s just one piece of the puzzle. Lenders look at your entire financial picture, including employment stability and your debt-to-income ratio.
So, if your credit report isn’t spotless, don’t worry. Our loan officers can guide you toward programs designed for those with less-than-perfect credit.
Interest rates do fluctuate but are historically low compared to past decades. A slight uptick shouldn’t deter you from buying. What’s more important is to assess your financial readiness and the broader economic landscape rather than worrying about minor rate changes.
If you’re financially prepared, it’s seldom the wrong time to buy. Don’t let rate changes deter you from getting your family into that perfect home.
Lenders primarily focus on your ability to repay the loan. If you have student debt but also have a stable income and a good debt-to-income ratio, you could very well be eligible for a mortgage.
Our lending team works with borrowers who have student debt every day. Reach out for a comprehensive evaluation of your debt-to-income ratio and learn about your loan options.
Most modern mortgage agreements do not penalize for early repayment. In fact, doing so can save you thousands in long-term interest payments. Always read the terms carefully before making extra payments but know that doing so is generally a financially sound decision.
If you need support understanding your mortgage agreement’s prepayment clause, consult our mortgage professionals for guidance.
At the end of the day, everyone’s financial situation is unique. You shouldn’t let misleading mortgage facts deter you from taking steps toward homeownership.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.