Buying your first home is an exciting step, but it’s also one filled with questions, doubts, and more than a few misconceptions. If you’ve been putting off homeownership because of something you “heard” from a friend or saw in a headline, you’re not alone. At KPT Mortgage Advisors, we work with First-time Homebuyers every day, and we hear the same myths pop up again and again.
Let’s bust five of the most common myths about buying your first home and help you move forward with clarity and confidence.
Myth #1: You Need a 20% Down Payment
This is probably the most persistent myth out there. Somewhere along the way, many people were led to believe that you can’t buy a home if you don’t have 20% saved for a down payment. While putting 20% down can help you avoid private mortgage insurance (PMI), becoming a homeowner is not required.
In reality, many loan programs allow for much lower down payments:
- FHA loans: As low as 3.5% down
- Conventional loans: Some programs allow 3% down
- VA loans: 0% down for qualified veterans and service members
- USDA loans: 0% down in eligible rural and suburban areas
Down payment assistance programs are also widely available, especially for first-time buyers. These programs can help cover some or even all of your down payment and closing costs.
The bottom line? Don’t let the 20% myth keep you from exploring your options. Chances are, you need much less than you think to get started.
Myth #2: You Need Perfect Credit to Qualify
Another myth that stops people in their tracks is the belief that you need an excellent credit score to get approved for a mortgage. While it’s true that a higher score can help you qualify for better interest rates, you don’t need a perfect credit report to buy a home.
Many first-time homebuyers qualify for loans with “good enough” credit, and some programs are specifically designed to be flexible:
- FHA loans often accept credit scores as low as 580
- Some lenders will work with scores even lower, especially with a larger down payment
- VA and USDA loans also have flexible credit requirements for qualified buyers
If your credit score isn’t where you want it to be, that’s okay. We work with buyers to understand their credit profile, and in many cases, a few small changes, like paying down credit card balances or correcting errors, can make a big difference.
The real key is knowing where you stand and having a plan. Don’t assume you’re unqualified without speaking to a mortgage professional.
Myth #3: Getting Pre-Approved Is Complicated or Risky
Some buyers delay their search because they’re intimidated by the idea of getting pre-approved, or they worry that doing so will hurt their credit score or lock them into something too soon.
Here’s the truth: Getting pre-approved is one of the smartest first steps you can take. It gives you a clear picture of what you can afford, helps you shop with confidence, and shows sellers you’re serious when it’s time to make an offer.
And no, it doesn’t ruin your credit. A single pre-approval will result in a soft or modest credit inquiry. Even multiple inquiries made within a short period (typically 30 days) are often treated as one inquiry by the credit bureaus when it comes to mortgage shopping.
Pre-approval is also not binding. You’re not committing to that specific lender or that exact loan product, you’re just getting clarity on your options. Think of it as financial groundwork, not a final decision.
Myth #4: You Should Wait for the “Perfect” Market
Many first-time buyers feel paralysed by timing, waiting for interest rates to drop, home prices to fall, or the stars to align just right. But the truth is, there’s no such thing as a perfect market, only the right time for you.
Trying to “time” the market can lead to missed opportunities. While it’s wise to pay attention to trends, interest rates and housing prices are constantly fluctuating. If rates are higher now than they were last year, remember: you can always refinance down the line when rates improve.
Plus, the longer you wait, the longer you’re paying rent instead of building equity. Even modest appreciation in home values can benefit you when you own the property.
The better question to ask is: Am I financially and personally ready to buy a home? If the answer is yes, the “right” time might be sooner than you think.
Myth #5: Renting Is Always Cheaper Than Buying
On the surface, it may seem like renting is the more affordable option, especially when you look at just the monthly rent versus a mortgage payment. But that comparison doesn’t tell the full story.
When you rent, 100% of your payment goes to your landlord. You’re not building equity. You’re not gaining tax advantages. And you’re subject to rent increases and lease terms beyond your control. When you own a home, your monthly payments contribute to an asset you control, an asset that may grow in value over time. And while ownership comes with additional responsibilities (like maintenance and insurance), it also offers long-term stability, wealth-building potential, and a place to truly call your own.
In many markets, the cost of owning is comparable to or even lower than renting, especially when factoring in tax deductions and rising rental prices. Buying isn’t right for everyone, but it’s not automatically more expensive either. It depends on your personal goals, finances, and long-term plans.
So, What’s the Real Story?
Buying your first home is a big decision, and it’s natural to have doubts. But you shouldn’t let myths and misinformation stand in the way of making a smart, informed move.
To recap:
- You don’t need 20% down.
- You don’t need perfect credit.
- Pre-approval is helpful and safe.
- There’s no such thing as “perfect timing.”
- Owning can be just as affordable and often more beneficial than renting
At KPT Mortgage Advisors, we believe in empowering first-time buyers with knowledge, options, and support. You don’t have to navigate this process alone, we’re here to help you every step of the way.
Ready to Explore Your Options? Let’s Talk.
Whether you’re ready to buy today or just starting to ask questions, we’re here to provide honest guidance and personalised mortgage solutions tailored to your needs. Your first home is closer than you think. Contact KPT Mortgage Advisors to schedule a free consultation and take the first step toward owning your future.