Mortgage myths
Mortgage Myths
There's a lot of mortgage advice out there. Some of it's helpful. Some of it's outdated. And some of it simply isn't true. Here are a few of the most common myths Julie hears and what you should know instead.
01Myth: You Need Perfect Credit to Buy a Home
Not true. While credit is important, you don't need a perfect score to qualify for a mortgage. Different loan programs have different requirements, and you may have more options than you think.
02Myth: One Missed Payment Means You Can't Qualify
Not necessarily. Life happens. A late payment or past financial setback doesn't automatically prevent you from buying a home. The full picture matters.
03Myth: You Should Wait Until Your Credit Is Perfect
Not always. Improving your credit is a great goal, but waiting for "perfect" may not be necessary. Sometimes buyers are much closer to qualifying than they realize.
04Myth: Getting Pre-Approved Will Hurt My Credit
A credit check can affect your score. A mortgage inquiry may cause a small, temporary impact, but it's often much less significant than people expect.
01Myth: You Need 20% Down to Buy a Home
Not true. Many buyers purchase a home with much less down. There are several loan programs designed to help buyers get into a home without 20% down.
02Myth: If I Don't Have a Down Payment Saved, There's No Point Talking to a Lender
Definitely not. Even if you're still saving, it can be helpful to understand your options and develop a plan. Many people are closer to homeownership than they think.
03Myth: A Bigger Down Payment Is Always Better
Not necessarily. A larger down payment can be beneficial, but it isn't always the best use of your savings. Every situation is different.
04Myth: I Need All My Money for the Down Payment
Not always. It's important to think about closing costs, moving expenses, and maintaining an emergency fund too. Buying a home shouldn't leave you financially stretched.
01Myth: Refinancing Is Only About Getting a Lower Rate
Not always. Some homeowners refinance to shorten their loan term, access equity, consolidate debt, or improve their overall financial situation.
02Myth: If Rates Have Gone Up, Refinancing Never Makes Sense
Not necessarily. A refinance isn't always about the rate. Sometimes it's about achieving a specific financial goal or taking advantage of equity you've built.
03Myth: Refinancing Is Too Expensive to Consider
Not always. Like any financial decision, it's important to compare the costs and benefits. Looking at break-even timing and long-term impact can help determine whether it makes sense.
04Myth: The Lowest Rate Is Always the Best Deal
Not necessarily. Closing costs, loan terms, and your long-term goals matter too. A lower rate doesn't automatically mean a better mortgage.
05Myth: If Another Lender Gave Me an Answer, That's My Only Option
Not true. Different lenders offer different programs and approaches. If you're unsure about an offer, a second opinion can provide valuable clarity.
01Myth: Renting Is Always Cheaper Than Buying
It depends. Every person's goals, timeline, and financial situation are different. The right choice isn't the same for everyone.
02Myth: Online Mortgage Calculators Tell the Whole Story
Not quite. Calculators are a great starting point, but they can't account for your unique goals, loan options, or financial picture.
03Myth: You Should Always Borrow the Maximum Amount You Qualify For
Not necessarily. The best mortgage payment is one that fits comfortably within your budget and supports your long-term goals.
04Myth: I Need to Have Everything Figured Out Before Calling a Lender
Definitely not. In fact, that's exactly when most people should reach out. A conversation can help answer questions, identify options, and create a plan.
These explanations are a starting point. Talk with Julie to get straight answers and information specific to your situation.
Browse all mortgage questions →No pressure. Just honest guidance.
Have a Question?
Not Sure What's Fact And What's Fiction?
Let's talk through your questions and make sure you're working with accurate information.