5 Common Myths About Getting a Mortage

March 19, 2025

5 Common Myths About Getting a Mortgage

Embarking on the journey to homeownership can be both exciting and daunting. Amidst the plethora of information available, several misconceptions about obtaining a mortgage persist. Let's debunk five common myths to help you navigate the mortgage process with confidence.

Myth 1: You Need a 20% Down Payment

While a 20% down payment can help you avoid private mortgage insurance (PMI), it's not a mandatory requirement. Various loan programs allow for lower down payments:

  • FHA Loans: As low as 3.5% down.
  • VA and USDA Loans: May offer 0% down options for qualified buyers.
  • Conventional Loans: Some programs accept as little as 3% down.

It's essential to explore different loan options to find one that aligns with your financial situation.

Myth 2: Only Perfect Credit Scores Qualify for Mortgages

While a higher credit score can secure better interest rates, many lenders offer programs for those with less-than-perfect credit. It's advisable to check your credit report, address any discrepancies, and consult with mortgage professionals to understand your options.

Myth 3: Getting Pre-Approved is Hard

Getting pre-approved is a quick and straightforward process when you’re working with a knowledgeable mortgage professional who guides you every step of the way. With the right support, you can often get pre-approved in less than a day using just a few key documents.

Myth 4: You Can't Get a Mortgage with Student Loan Debt

Having student loans doesn't automatically disqualify you from obtaining a mortgage. Lenders assess your debt-to-income (DTI) ratio to determine your ability to manage monthly payments. Demonstrating consistent income and responsible debt management can enhance your mortgage eligibility.

Myth 5: It’s Cheaper to Rent

While renting may seem cheaper upfront, monthly rent payments can often be higher than a mortgage—especially with rising rental rates. When you own a home, you're building equity instead of paying your landlord, and many ownership costs stay more stable over time. In some cases, owning can actually save you money each month and give you long-term financial benefits.

Understanding the realities of the mortgage process can alleviate unnecessary stress and empower you to make informed decisions. By debunking these common myths, you're better equipped to embark on your homeownership journey with clarity and confidence.