Buying a home is one of the biggest financial decisions you’ll ever make—so it’s critical to use accurate, up-to-date information. Unfortunately, common myths and outdated advice still circulate, causing confusion and missed opportunities. Let’s set the record straight.
While 20% was once the standard, it’s no longer required. In 2024, first-time buyers averaged just 9% down. Some loan programs offer options as low as 3%—though anything under 20% often requires private mortgage insurance (PMI). Ask your lender about down payment assistance programs that may help.
Renting may seem more affordable at first glance, but buying allows you to build equity—and with rising rent prices in 2025, ownership could actually cost less long-term. If you plan to stay put for a few years, buying often makes better financial sense.
Buying a home that needs work might have a lower upfront cost, but renovation expenses add up quickly. Even with a renovation loan, total costs can rival or exceed move-in-ready homes.
You can still qualify for a mortgage with student loans or other debts. Lenders focus on your debt-to-income (DTI) ratio, not the debt amount itself. Managing your debt responsibly is more important than eliminating it entirely.
Not all lenders offer the same experience. Rates matter, but so do technology, service, and loan options. A streamlined digital mortgage platform can save you time and stress during the process.
Spring sees more listings—but also more competition and higher prices. Buying in the off-season can give you an edge in negotiations.
Start with mortgage pre-approval. It shows sellers you’re serious, sets a clear budget, and gives you a competitive edge when making an offer.
It’s popular—but not your only choice. A 15-year loan can mean lower total interest, faster equity, and a quicker payoff (though monthly payments are higher). Explore the term that fits your goals.
A low rate can hide high fees. Look at the APR, which includes closing costs and lender fees. Also ask about buying points to lower your rate over time.
An accepted offer is just the beginning. You’ll still need to clear contingencies like inspections, appraisal, financing, and title review before closing.
Ready to Buy?
If these myths held you back before, now’s the time to move forward. Get pre-approved and show agents and sellers you’re ready to make your move.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply; contact Premia for current rates and additional information.
All information provided in this publication is for informational and educational purposes only and should not be construed as financial, investment, legal, or tax advice. Premia Mortgage, LLC does not guarantee the quality, accuracy, completeness, or timeliness of the information contained herein. While efforts are made to verify the information provided, it should not be assumed to be error-free. Some content may have been provided by third parties and has not necessarily been independently verified by Premia Mortgage, LLC.
Premia Mortgage, LLC, its affiliates, and subsidiaries do not assume any liability for the information contained herein, whether direct, indirect, consequential, special, or exemplary, or any other damages arising out of or in connection with the use of this publication or reliance on its contents, including any personal or financial loss, whether the action is in contract, tort (including negligence), or otherwise.
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