5 First-Time Homebuyer Myths

For many first-time buyers, the idea of purchasing a home feels equal parts exciting and intimidating. Between headlines, social media advice, and well-meaning family members, it can be difficult to separate fact from fiction. The truth is, many of the beliefs that keep buyers on the sidelines are rooted in outdated assumptions.

If you are thinking about purchasing your first home, here are five common myths worth reconsidering.

Myth One: You Need 20 Percent Down
For years, the 20 percent down payment has been treated as the gold standard. While putting more down can lower your monthly payment and potentially eliminate private mortgage insurance, it is not a requirement for most buyers.

There are loan programs designed specifically for first-time homebuyers that allow for significantly lower down payments. In some cases, qualified buyers may put down as little as three to five percent. Waiting years to save a full 20 percent can mean missing out on building equity and benefiting from appreciation in the meantime.

Myth Two: You Need Perfect Credit
Many aspiring homeowners assume that unless their credit score is flawless, they will not qualify for a mortgage. In reality, lenders evaluate a range of factors, including income stability, debt levels, and payment history.

A strong credit score certainly helps, but perfection is not necessary. Buyers with solid, responsible financial habits often have more options than they realize. Speaking with a trusted lender early in the process can provide clarity and a realistic plan.

Myth Three: Renting Is Always Cheaper
Renting can feel safer because it avoids maintenance costs and property taxes. However, rent payments build no equity. Each month, you are contributing to someone else’s investment.

Homeownership, on the other hand, allows you to build long-term wealth through equity as you pay down your mortgage and as your property potentially appreciates. While ownership does come with responsibilities, it also offers stability and the opportunity to create a space that truly feels like your own.

Myth Four: You Should Wait for the “Perfect” Market
Trying to time the real estate market is a common strategy, but it is rarely successful. Interest rates fluctuate, inventory shifts, and economic conditions evolve. Waiting for ideal conditions often results in continued delay.

A better approach is to focus on personal readiness. If your finances are stable, you plan to stay in the area for several years, and homeownership aligns with your goals, those factors matter more than predicting short-term market changes.

Myth Five: Your First Home Must Be Your Forever Home
There is pressure to find a property that checks every box. The reality is that your first home is often a stepping stone. It does not need to be perfect. It needs to work for your current stage of life.

Many buyers start with a home that fits their budget and lifestyle now, then build equity and transition to a different property later. Thinking of your first purchase as part of a longer journey can remove unnecessary pressure and make the process more approachable.

The Bottom Line
Buying your first home is not about meeting someone else’s definition of readiness. It is about understanding your options, evaluating your goals, and making an informed decision.

When you move past the myths and focus on facts, the path to homeownership becomes clearer. And with the right guidance, it may be more attainable than you think.