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If you&rsquo;re thinking about buying a home, you&rsquo;ve probably received your share of advice from family and friends. Add to that the constant stream of TV shows, news segments, and social media posts that over-simplify the home buying process for easy entertainment.
With so much information to sift through, it can be tough to distinguish fact from fiction. That&rsquo;s why we&rsquo;re revealing the truth behind some of the most common home buyer myths and misconceptions. 
Buying a home is a big decision, but it doesn&rsquo;t have to be a scary one. If you arm yourself with knowledge and a qualified team of support professionals, you&rsquo;ll be well equipped to make the right choices for your family and financial future.
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DON&rsquo;T FALL FOR THESE COMMON HOME BUYER MYTHS
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Myth #1: You need a 20% down payment. 
Plenty of buyers are purchasing homes with down payments that are much less than 20% of the total cost of the property. Today, you can buy a home with as little as 3-5% down.
There are multiple programs out there that allow you to have a lower down payment, and a lender or mortgage broker can talk you through which option is the best for you. Since you&rsquo;re putting less money down, you&rsquo;re a riskier borrower to your lender than people who put down a full 20%. Because of this, you will most likely need to pay mortgage insurance as part of your monthly payment.
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Myth #2: Real estate agents are expensive. 
Your agent is with you every step of the way throughout your home buying journey, and he or she spends countless hours working on your behalf. It sounds like having an agent is expensive, right? Well, not for you. Buyers usually don&rsquo;t pay a real estate agent&rsquo;s commission. Your agent&rsquo;s fee is paid for at closing by the seller of the home you&rsquo;re buying.1 The seller knows to factor this cost into the property&rsquo;s total purchase price. 
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Myth #3: Don&rsquo;t call a real estate agent until you're ready to buy. 
The earlier you bring in an agent to help with the purchasing process, the better. Even if you&rsquo;re in the very early stages of casually browsing Zillow, a real estate professional can be a huge help. 
They can create a search for you in the Multiple Listing Service (MLS), so you get notifications for every house that meets your criteria as soon as it hits the market. The MLS is typically more up-to-date than popular home search sites like Zillow and Trulia. Setting up a search a few months before you&rsquo;re considering buying gives you a good idea of what&rsquo;s out there in your town that&rsquo;s in your budget. Reviewing the MLS and speaking with an agent as soon as possible can help you set realistic expectations for when you actually start the house hunting process. 
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Myth #4: Fixer-uppers are more budget friendly.
We&rsquo;ve all watched the shows on HGTV that encourage people to go after fixer-uppers because they&rsquo;re more affordable and allow buyers to eventually renovate the home to include everything on their wishlist. But, this isn&rsquo;t always the case. 
Sometimes, homes that need a lot of work also require a lot of money. Big renovations, like add-ons, a total kitchen remodel, or installing a pool, take a lot longer than it looks on TV. If you&rsquo;re really interested in a fixer-upper, ask your agent to show you a mix of newer homes and older homes. If you fall in love with an older home that needs a lot of work, get some quotes from contractors before you buy so you know the real cost of the renovations and see if you can work them into your budget. 
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Myth #5: Your only upfront cost is your down payment. 
Your down payment is big, but it isn&rsquo;t the only money you&rsquo;ll spend during the home buying process. At closing, you&rsquo;ll pay your down payment, but you&rsquo;ll also bring closing costs to the table. Closing costs are typically anywhere from 2-4% of the total purchase price of the home.2 This amount includes the cost for items like homeowners insurance, title fees, and more.
You&rsquo;ll also need to pay for an inspection before closing, which usually costs a few hundred dollars. This price will be higher or lower based on the size of your new property. Your lender will also require an appraisal. An appraiser will come in and inspect the home to determine how much it&rsquo;s worth. Depending on your lender, you may have to pay this when the appraisal is conducted or it might be rolled into your closing costs. 
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Myth #6: You need a high credit score to buy a house. 
You don&rsquo;t need perfect credit to buy the perfect home. There are loans out there that buyers with lower credit scores can qualify for. These are good options for people who have had credit issues in the past, but some of them come with additional fees you will need to pay. Speak to a few local lenders or mortgage brokers to talk through which options might be best for you. 
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Myth #7: You can't qualify for a mortgage if you're still paying off student loans.
While some buyers may feel more comfortable paying off their existing debts before taking the leap into homeownership, it&rsquo;s not a requirement. When you&rsquo;re applying for a mortgage, the lender takes a close look at your debt-to-income ratio.3 If you want to calculate this on your own, add up all of your monthly debt payments and divide those by your monthly income. When you&rsquo;re lender does this, they&rsquo;re trying to make sure that you will be able to afford your monthly mortgage payments along with your other existing payments. If your income is high enough to allow you to make all of these payments each month, having a student loan will most likely not stop you from getting a mortgage.
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Myth #8: You should base your budget on what your lender approves.
How much house you qualify for and how much you can afford are two totally different numbers. When you prequalify for a mortgage, your lender will look at your income, debt, assets, credit score, and financial history to determine how much money you might qualify for.4 For some people, this number might be much higher than you thought because lenders tend to approve for the highest amount they think you can afford. But that doesn&rsquo;t mean that&rsquo;s how much you should borrow. 
Instead, figure out how much house you can actually afford. <a href="https://www.bankrate.com/calculators/mortgages/how-much-money-can-i-borrow.aspx">An online mortgage calculator</a> can be a good first step in determining this number. We recommend thinking about what you want your monthly payment to be as a starting point. And remember to include your principal, interest, taxes, and, insurance. You should also think about ownership expenses that aren&rsquo;t part of your monthly payment, like HOA dues and maintenance.
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Myth #9: It's all about location.
You&rsquo;ve heard the phrase. Location, location, location is basically the real estate industry&rsquo;s motto, but we&rsquo;ll let you in on a little known secret: It&rsquo;s not always true. Yes, location is great to consider when it comes to school districts and commute times, but you also need to think about how the home will function for you and/or your family&rsquo;s lifestyle. If a family of five is choosing between a one bedroom condo in the bustling city center and a 4-bedroom home out in the suburbs, the latter is probably the best, most functional choice for them. Also, by buying in a less sought after neighborhood, your property taxes will most likely be much lower! 
Obviously, you might still want to choose an area with great resale potential, and this is something that your agent can speak to you about. They&rsquo;re an expert in your city and are constantly monitoring buying and selling trends. 
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Myth #10: If you look hard enough, you'll find a home that checks every box on your wishlist. 
You&rsquo;ve seen that famous house hunting show. And while we have our suspicions about how real it is, the one thing they get right is that almost every buyer needs to compromise on something. Yes, the perfect house that meets every item on your wishlist is probably out there, but it&rsquo;s also probably double or triple your budget. 
A long wishlist can be a great starting point for figuring out what you want and don&rsquo;t want, but we recommend narrowing that wishlist down to the top five things that are important to you in order of priority. We also recommend noting on your wishlist what your absolute deal breakers are, like &ldquo;must have a yard for our dog,&rdquo; and noting what you can live without, like &ldquo;heated bathroom floors.&rdquo; 
This is a great list to discuss when you first start talking to an agent. A good real estate agent will be able to look at your list and find properties that might work for you. By coming to that first meeting with realistic expectations and knowledge about home buying rather than a bunch of myths heard here and there, you&rsquo;ll be able to start the process off on the right foot and be in your new house in no time. 
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WE&rsquo;RE HERE TO HELP
Whether you&rsquo;re a first-time buyer or a seasoned homeowner, there&rsquo;s no reason to go through the home buying process without an advocate on your side. We&rsquo;re here to answer your questions and do the hard work for you, so you can spend your time dreaming about your new home. Call us today to schedule a free, no-obligation consultation.
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Get a FREE copy of our Home Buyer&rsquo;s Guide to Getting Mortgage Ready
Now that we&rsquo;ve cleared up these common homebuyer myths, find out if you know the steps you should take to prepare financially before you apply for a mortgage. Contact us to request a complimentary copy of our &ldquo;Home Buyer&rsquo;s Guide to Getting Mortgage Ready.&rdquo; 
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Sources:
<ol>
<li style="font-weight: 400;">Realtor.com -&nbsp;<a href="https://www.realtor.com/advice/finance/realtor-fees-closing-costs/">https://www.realtor.com/advice/finance/realtor-fees-closing-costs/</a></li>
<li style="font-weight: 400;">The Balance - <a href="https://www.thebalance.com/buyer-s-closing-costs-1798422">https://www.thebalance.com/buyer-s-closing-costs-1798422</a></li>
<li style="font-weight: 400;">StudentLoanHero -&nbsp;<a href="https://studentloanhero.com/featured/student-loans-buying-house/">https://studentloanhero.com/featured/student-loans-buying-house/</a></li>
<li style="font-weight: 400;">Zillow -&nbsp;<a href="https://www.zillow.com/mortgage-learning/pre-qualification-vs-pre-approval/">https://www.zillow.com/mortgage-learning/pre-qualification-vs-pre-approval/</a></li>
</ol>

 
If you’re thinking about buying a home, you’ve probably received your share of advice from family and friends. Add to that the constant stream of TV shows, news segments, and social media posts that over-simplify the home buying pr

Top 10 Myths That Trip Up First-Time Home Buyers

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Every&nbsp;<a href="https://www.simplifyingthemarket.com/2024/09/03/should-you-sell-now-the-lifestyle-factors-that-could-tip-the-scale/?a=557222-8291ce85f7eeba08632c90e1c27f059e">seller</a>&nbsp;wants to get their house sold&nbsp;<a href="https://www.simplifyingthemarket.com/2024/07/17/why-fixing-up-your-house-can-help-it-sell-faster/?a=557222-8291ce85f7eeba08632c90e1c27f059e">quickly</a>, for as much money as they can, with as few&nbsp;<a href="https://www.simplifyingthemarket.com/2024/08/30/how-to-avoid-todays-top-seller-mistakes/?a=557222-8291ce85f7eeba08632c90e1c27f059e">headaches</a>&nbsp;as possible. And chances are, you&rsquo;re no different.
But did you know one of the biggest things that could jeopardize your success is the&nbsp;<a href="https://www.simplifyingthemarket.com/2024/08/21/the-number-one-mistake-sellers-are-making-overpricing-their-house/?a=557222-8291ce85f7eeba08632c90e1c27f059e">asking price</a>&nbsp;for your home? Pricing your house correctly is one of the most crucial steps in the selling process.
So, how do you know if you&rsquo;re missing the mark? Here are four signs your high asking price might be turning potential buyers away&mdash;and why leaning on your&nbsp;<a href="https://www.simplifyingthemarket.com/2024/08/20/how-to-choose-a-great-local-real-estate-agent/?a=557222-8291ce85f7eeba08632c90e1c27f059e">real estate agent</a>&nbsp;is the best way to course correct.
<h4>1. You&rsquo;re Not Getting Many Showings or Offers</h4>
One of the most obvious signs your house may be overpriced is a lack of showings. If it's been on the market for several weeks and only a few buyers have come to see it&mdash;or worse, you haven&rsquo;t gotten any&nbsp;<a href="https://www.simplifyingthemarket.com/2024/08/06/helpful-negotiation-tactics-for-todays-housing-market/?a=557222-8291ce85f7eeba08632c90e1c27f059e">offers</a>&mdash;it could be a clear indication the price isn&rsquo;t matching up with what buyers expect. Because buyers who have been looking for a while can easily spot (and write off) a home that seems overpriced.
Your real estate agent will coach you through this, so lean on their experience for what you may want to try to bring more buyers in, including considering a price cut.
<h4>2. Buyers Have Consistent Negative Feedback after Showings</h4>
And if after the showings you do have, comments from the potential buyers aren&rsquo;t great, you may need to course correct. Feedback from showings is an important part of understanding how buyers see your house. If they consistently say it's overpriced compared to other homes they&rsquo;ve seen, it&rsquo;s time to reconsider your pricing strategy.
Your agent will gather and analyze this feedback for you, so you can look at how your house stacks up in the market. They can also suggest specific&nbsp;<a href="https://www.simplifyingthemarket.com/2024/08/09/home-inspections-for-sellers-how-to-prepare/?a=557222-8291ce85f7eeba08632c90e1c27f059e">improvements</a>&nbsp;or staging changes to better justify your asking price, or recommend one that aligns with today&rsquo;s buyer expectations. As the&nbsp;National Association of Realtors&nbsp;(NAR)&nbsp;<a href="https://www.nar.realtor/determining-asking-price" target="_blank" rel="noopener noreferrer">explains</a>:
<blockquote>&ldquo;Based on all the data gathered, agents may make adjustments to the initial price recommendation. This could involve adjusting for market conditions, property uniqueness, or other factors that may impact the property's value.&rdquo;</blockquote>
<h4>3. It&rsquo;s Been on the Market for Too Long</h4>
And that lack of interest is ultimately going to lead to it sitting on the market without any serious bites. The longer it lingers, the more likely it is to raise red flags for buyers, who may wonder if something is wrong with it. Especially in today&rsquo;s market with growing inventory, a long listing period means your house is&nbsp;<a href="https://www.simplifyingthemarket.com/2024/06/25/how-long-will-it-take-to-sell-my-house/?a=557222-8291ce85f7eeba08632c90e1c27f059e">stale</a>&nbsp;&ndash; and that makes it even harder to sell.
Your real estate agent will be able to give you perspective on how quickly other homes in your area are selling and walk you through what&rsquo;s working for other sellers. That way you can decide together if there&rsquo;s something you want to do differently. As a&nbsp;Bankrate&nbsp;article says:
<blockquote>&ldquo;Check with your agent about the average number of days homes spend on the market in your area. If your listing has been up significantly longer than average, that may be a sign to reduce the price.&rdquo;</blockquote>
<h4>4. Your Neighbor&rsquo;s House Sold Without an Issue</h4>
And here&rsquo;s the last one to watch out for. If similar homes in your area are selling faster than yours, it&rsquo;s a clear sign that something is off. This could be due to things like a lack of upgrades, outdated features, or a less desirable location. Or, it may be priced too high.
Your agent will keep you up to date on your competition and what changes, if any, you need to make your home more competitive. They&rsquo;ll offer advice on small updates that could increase your home&rsquo;s appeal or how to adjust your strategy to reflect the reality of the market today.
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<h3>Bottom Line</h3>
Pricing a home correctly is both an art and a science. It requires a deep understanding of the market and buyer psychology. And when the price isn&rsquo;t drawing in buyers, there&rsquo;s no better resource than your agent on what you may want to do next.&nbsp;
</div>

Every seller wants to get their house sold quickly, for as much money as they can, with as few headaches as possible. And chances are, you’re no different.
But did you know one of the biggest things that could jeopardiz

Is your house overpriced and turning away potential buyers? Learn four signs that your asking price might be too high and how to course correct with the help of your real estate agent. Discover tips for pricing your home competitively and attracting more offers.