Facts You Didn’t Know

🧠 Homebuying University: FYIs and Myths vs Facts

*Everything You Think You Know\… But Might Be Wrong About Buying a House*

Let’s bust some myths. Whether it’s credit, down payment, income, or who pays what—you’d be surprised how many people delay buying a home because of false information. Here’s the real deal:

—

1. 🧾 I need a 700 credit score for the best interest rate

Not true. Some loan programs offer flat interest rates regardless of score. For example, new construction loans often give the same rate to someone with a 640 that they give to someone with a 700+. Some banks also offer special programs with fixed rates for all qualifying buyers.

—

2. 💼 I need to be at my job for 2 years

Nope. You can get approved after just a few days on the job—as long as you haven’t been unemployed for an extended period.

—

3. 🎓 I have high student loans, I won’t be approved

It depends on your **monthly payment**, not your total loan balance. Lenders use a formula to factor it into your debt-to-income (DTI) ratio.

—

4. 🧾 I have collections on my credit

That doesn’t automatically disqualify you. Many collections are fine to leave as-is unless the lender specifically tells you to pay them off.

—

5. 💰 Additional income doesn’t count

It absolutely can! Child support, SSI, disability, and other court-ordered income can help you qualify for more home.

—

6. 🏦 I need a lot of money saved for a down payment

Nope. You don’t need 10% or even 5%. There are many low or no-down-payment programs and incentives available.

—

7. 🕵️‍♂️ There are hidden fees in homebuying

Illegal. You receive multiple disclosures during the process that clearly outline your costs. Nothing is secretly tacked on.

—

8. 📈 My interest rate might change

Not unless you want it to. Most loans are **fixed rate**. Adjustable-rate mortgages (ARMs) are a specific request, not the default.

—

9. 💳 I should pay down my credit cards before applying

Not necessarily. Unless your lender tells you to for DTI purposes, you may be better off saving that money for closing costs. If they need it paid down, they’ll tell you and ask for proof after.

—

10. 🏠 I can’t afford rent and a mortgage payment at the same time

Here’s a hack: Most mortgage payments aren’t due until the first of the *following* month after you close. So, if you close in July, your first payment likely isn’t due until September.

—

11. 🧭 I should wait to contact a Realtor until I’m “ready”

No way. A Realtor helps you *get* ready. We connect you to lenders, credit resources, and help strategize your game plan.

—

12. 📉 The market is going to crash

People also thought gas and Coca-Cola would go back to 99¢. This isn’t 2008—back then, it was fraud and bad loans. Now, we have better regulation and stronger loan qualifications.

—

13. 💸 I’m a first-time homebuyer, so I won’t pay anything out of pocket

Not always true. Whether you pay depends on your finances, loan program, and how your deal is negotiated. Assistance programs help, but they don’t always cover 100%.

—

14. 🧱 New homes aren’t built like the old ones

Old homes had asbestos and aluminum wiring. New homes are built to different codes. It’s not about old vs. new—it’s about what fits *your* needs and the quality of that specific house.

—

15. 🎓 I just graduated, so I have to wait to buy a house

False. Lenders can use your school history in place of job history. Your **offer letter** can count as income documentation for pre-approval.

—

16. 👥 I’ll just get a co-signer to fix my low credit

A co-signer doesn’t override bad credit. Their score helps with affordability, not credit qualification. Both scores must meet the program minimum.

—

17. 💸 These homes aren’t worth what they’re being sold for

That’s subjective. People relocating from more expensive states often think these prices are cheap. The key is buying something you like and can afford—not trying to time the market.

—

18. 🎯 I’ll automatically get benefits because I’m a first-time buyer

Not always. If your DTI or credit doesn’t qualify, you won’t get those benefits—even if it’s your first time.

—

19. 🏚️ The house has been sitting, so the seller *has* to drop the price

Not true. Does a longer market time give you more leverage? Yes. But price reductions are up to the seller, and they may not budge.

—

20. 💵 I need a cheaper house for a cheaper payment

Not necessarily. Lowering your **interest rate** could reduce your payment more than a \$10K price drop. There are multiple ways to hit your payment goal.

—

21. 📋 I want my first house to have everything I want

You may need to compromise. Most people only get 2 out of 3: location, price, or finishes. Don’t try to turn your first home into your forever home.

—

22. 🏦 I’ll just get pre-approved with my bank

Shop around! Just because you’ve banked there since you were 3 doesn’t mean you’ll get better mortgage terms. Your loan is likely to be sold to another lender anyway.

—

Would you like a thumbnail or PDF version to match this post?