First-Time Home Buyer Myths You Should Ignore

8 September 2025

So, you’re thinking about buying your first home. Congrats! 🎉 That’s a huge step, and it’s super exciting. But wait—before you even start looking at listings, let’s take a moment to bust some of the biggest myths that could trip you up.

Because let’s be real, there’s a lot of bad advice floating around. Between your well-meaning aunt, your best friend who just bought a house, and the internet (good ol’ Google University), it’s hard to know what’s fact and what’s pure nonsense.

So, grab a cup of coffee (or maybe something stronger), and let’s tackle the first-time home buyer myths you should absolutely ignore.

Myth #1: You Need a 20% Down Payment

Ah, the legendary 20% down payment. If this were true, most of us would still be living with our parents or paying rent forever. While putting down 20% can save you from private mortgage insurance (PMI), it’s not a requirement.

In reality, many first-time homebuyer programs allow you to put down as little as 3% to 5%. Some government-backed loans (like FHA, VA, and USDA loans) can get you in the door with even less—sometimes zero down!

So, don’t let this myth scare you off. Yes, a bigger down payment can be helpful, but waiting forever to save 20% might mean missing out on homeownership altogether.

Myth #2: Your Credit Score Has to Be Perfect

If you’re waiting for a flawless 800+ credit score before buying a home, you might be waiting forever. While a good credit score helps you snag better interest rates, you don’t need to have perfect credit to qualify for a mortgage.

Many lenders approve loans for borrowers with scores as low as 580 (or even lower for some government-backed loans). And if your credit isn’t where you want it to be, you can always work on improving it while still moving forward with your home search.

Bottom line? Don't let a not-so-perfect credit score hold you back.

Myth #3: You Should Always Buy the Most Expensive Home You Can Afford

Just because a lender approves you for a $500,000 home doesn’t mean you should max out your budget. Lenders don’t take into account things like vacations, your online shopping habits, or that expensive coffee addiction.

You need to think long-term. Will you still be able to afford your mortgage if an unexpected expense pops up? Will you have room in your budget for home maintenance, repairs, and, you know… actually enjoying your life?

Buying a home isn’t just about what you can technically afford—it’s about what makes sense for your lifestyle.

Myth #4: Renting Is Always Cheaper Than Buying

Ah yes, the good old “renting is throwing money away” versus “buying is too expensive” debate. The truth? It depends.

In some markets, renting might make sense, especially if you plan to move in a couple of years. But in many areas, buying is actually cheaper in the long run.

When you rent, your monthly payment goes straight to your landlord. But when you own, you’re building equity in an investment that could pay off later. Plus, rents tend to rise over time, while a fixed mortgage payment stays the same.

Do the math for your situation before assuming one is always better than the other.

Myth #5: You Should Wait Until the Market Crashes to Buy

If we had a crystal ball to predict the real estate market, we’d all be millionaires. But spoiler alert: no one knows exactly when (or if) the market will crash.

Waiting for the “perfect” time to buy could mean missing out on years of building equity. And let’s be honest, even during a so-called crash, homes don’t necessarily become dirt cheap overnight.

Instead of trying to time the market, focus on whether you are financially ready. If you find a home you love and can afford, that’s your cue. Not some mystical housing market prophecy.

Myth #6: You Don’t Need a Real Estate Agent

Sure, you could go house hunting on your own. You could also perform surgery on yourself after watching a few YouTube tutorials—but would you really want to?

A good real estate agent is worth their weight in gold (or at least in closing costs). They’ll help you navigate contracts, negotiate deals, and spot any red flags you might miss.

Plus, as a buyer, you typically don’t even pay their commission—the seller does! So why not have a pro in your corner?

Myth #7: A Home Inspection Isn’t Necessary

Oh boy. Skipping a home inspection is like buying a used car without checking under the hood—it’s a recipe for disaster.

Even if a home looks perfect, there could be hidden issues—like a cracked foundation, old wiring, or a plumbing system that’s one bad day away from flooding your kitchen.

A home inspection might cost a few hundred bucks, but it can save you from buying a money pit. And trust me, a surprise roof replacement isn’t the kind of “fun surprise” anyone wants.

Myth #8: You Should Always Go with the Lowest Mortgage Rate

Yes, a low mortgage rate is awesome. But lenders sometimes offer rock-bottom rates with hidden fees, higher closing costs, or sneaky terms that aren’t in your favor.

Instead of just focusing on the interest rate, look at the whole loan package—fees, loan terms, and whether it actually fits your long-term goals. Sometimes, a slightly higher rate with fewer fees is the better deal.

Myth #9: You Can’t Buy a Home with Student Loan Debt

Let’s be honest—if student loans disqualified people from buying homes, millennials would be renting forever. But thankfully, that’s not the case.

Lenders look at something called your debt-to-income ratio (DTI)—basically, how much debt you have compared to your income. If your DTI is reasonable, student loans won’t stop you from getting a mortgage.

So, don’t let your college degree keep you from homeownership. Your dream home can co-exist with those student loan payments.

Myth #10: Buying a Home Is Always a Smart Investment

Okay, let’s get real—buying a home can be a great investment, but it’s not a guaranteed ticket to wealth.

Homes appreciate over time, but not always at the lightning speed people expect. And if you buy at the top of the market or sell during a downturn, you could break even (or even lose money).

The real value in homeownership comes from stability, not just making a quick buck. If you're planning to stay put for a while and enjoy your home, you’ll likely come out ahead. But if you’re buying just because “real estate always goes up,” you might be in for a surprise.

Final Thoughts

Buying your first home is an exciting milestone, but don’t let these myths hold you back (or stress you out). The best thing you can do? Get informed, work with professionals, and go into the process with a clear understanding of your options.

And remember—there’s no one-size-fits-all approach to buying a home. Do what works for you, not what the myths say you should be doing.

Happy house hunting!