10 Home Buying Myths That Could Scare You Away (But Shouldn’t)

Buying a home is one of the biggest financial moves you’ll ever make. And with today’s affordability fears, it’s also one of the easiest to overthink. Myths and assumptions are keeping many would-be buyers stuck on the sidelines.

Using insights from HomeLight’s nationwide surveys and feedback from hundreds of real estate agents across the country, we reveal 10 home buying myths that could spook your search — and the truth behind them.

Step One: Consult with a Trusted Buyer's Agent

Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase), and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.

Get Started

Myth #1: Wait until mortgage rates drop more

Myth: It’s best to hold out until rates fall further before buying a home.

What’s real: While rates have inched down — with the Federal Reserve signaling more cuts ahead — waiting isn’t always the smartest move. According to a recent HomeLight Lender Insights survey, once interest rates drop enough for more buyers to take action, home prices are predicted to jump 13%, and inventory could tighten. The survey found that on-the-fence buyers are waiting for rates to hit 5.75%. Experts caution that focusing only on rates can mean missing the right home at the right time.

»Learn more: Should I Buy a House Now or Wait? (10 Questions to Ask First)

Myth #2: You need a 20% down payment

Myth: You can’t buy a house unless you’ve saved a full 20% down.

What’s real: Many loan programs require far less. FHA and conventional loans often allow 3%–5% down, and VA and USDA loans typically require 0%. According to data  from the National Association of Realtors, the average down payment for first-time homebuyers is about 9%, significantly lower than the 20% down payment myth.

»Learn more: House Down Payment Calculator

Myth #3: Buy the most expensive home you can get approved for

Myth: If your lender approves you, you can comfortably afford that amount.

What’s real: A pre-approval amount represents the maximum a lender thinks you can borrow, not the amount you can comfortably afford. Stretching your budget to its limit is risky. Your monthly housing costs could consume a massive chunk of your income, leaving little for savings, emergencies, or discretionary spending like travel and entertainment.

»Learn more: How Much House Can I Afford? (Home Affordability Calculator)

Myth #4: You must have perfect credit to buy

Myth: Only buyers with spotless credit can get a mortgage loan.

What’s real: A high credit score helps, but it’s not a dealbreaker. FHA loans allow scores as low as 580, and many conventional lenders approve in the low 600s. Some lenders may offer loan programs with even lower credit score requirements, depending on your circumstances. Improving your credit can lower your rate, but imperfect credit doesn’t lock you out.

»Learn more: What’s the Minimum Credit Score to Buy a House?

Myth #5: Pre-qualification guarantees loan approval

Myth: If you’ve been pre-qualified for a mortgage, you’re guaranteed the loan amount and can shop with confidence.

What’s real: Pre-qualification is only a rough estimate based on self-reported information. It doesn’t involve a deep review of your finances, so it’s far from guaranteed. Even pre-approval — a stronger step where a lender verifies income, credit, and assets — is not final approval. Your loan isn’t secure until underwriting is complete. Relying too much on pre-qualification can set you up for disappointment if your financing falls through.

»Learn more: How to Increase Your Preapproval Amount

Myth #6: You don’t need a home inspection

Myth: In more competitive markets, some buyers might think skipping the inspection will save money or help them win the home.

What’s real: Waiving this step is risky. Inspections uncover hidden problems that aren’t obvious during a showing (e.g., faulty wiring, roof damage, foundation problems). Without one, you’re buying the home as-is, including costly issues the seller might not disclose. The few hundred dollars you save on the inspection could cost you thousands down the road.

»Learn more: Do I Need a Home Inspection?

Myth #7: You don’t need a buyer’s agent

Myth: With online listings, buyers can handle the process themselves.

What’s real: A buyer’s agent provides more than MLS access — they flag red flags, guide you through inspections, and negotiate on your behalf. HomeLight data shows top agents often save buyers thousands through negotiation and concessions. Going it alone can expose you to risks and missed opportunities.

»Learn more: Why Hire a Buyer’s Agent?

Myth #8: All fixer-uppers are a good deal

Myth: Older homes and fixer-uppers always save you money.

What’s real: While a lower initial price can make older homes and fixer-uppers seem like a bargain, the myth that they always save you money is false. Unexpected and expensive problems are common (like outdated wiring or plumbing), and renovation costs can quickly exceed any initial savings, turning what you thought was a deal into a long-term “money pit” project.

»Learn more: What is a Fixer-Upper Home, and Is It Right For You?

Myth #9: You should waive contingencies to compete

Myth: The only way to win the home you want is to waive inspection or financing contingencies.

What’s real: While waiving contingencies makes your offer more competitive in a tough market, it exposes you to significant financial liability. It is not recommended for first-time buyers or for older homes without professional advice. A smarter move is to shorten contingency timelines, offer higher earnest money, or get pre-underwritten financing. Only consider waiving contingencies if you have the financial cushion to cover potential surprises.

»Learn more: Should I Waive the Appraisal Contingency?

Myth #10: Renting is always cheaper than buying

Myth: Renting a home is always more affordable than buying.

What’s real: While renting can be cheaper short-term in some markets (like large U.S. metros), buyers build equity and gain stability with fixed payments over time. With rents rising faster than inflation in many areas, monthly mortgage payments can end up lower than rent. Homeowners also enjoy tax benefits. Buying is both a financial and lifestyle decision, but it’s not automatically more expensive.

»Learn more: When Does It Make Sense to Rent vs. Own Your House?

Bonus myth: You can’t buy before you sell

Myth: Most homeowner buyers believe they must sell their current home first in order to buy their next house.

What’s real: If you already own a home, programs like HomeLight’s Buy Before You Sell let you unlock your equity to buy your next house first, then sell on your schedule. These modern solutions streamline the entire process from start to finish. You can make a non-contingent offer on your new home and only move once. Watch this short video to see how it works.

»Learn more: What Is a Buy Before You Sell Program?

Don’t let myths haunt your home search

Home buying myths can scare you into waiting too long, overspending, or missing out on the right home. The truth is, every market and buyer is different. With expert guidance, solid data, and the right tools, you can decide what’s best for you in your current situation — or what plans to make for the future.

If you’re considering buying your first home, or it’s time to upsize or downsize, HomeLight is here to help. Our free Agent Match platform analyzes millions of transactions to connect you with top local agents.

For more resources, explore our calculators:

• Home Affordability Calculator
• Down Payment Calculator
• Closing Costs Calculator
• Earnest Money Calculator
• Mortgage Payment Calculator
• Home Value Estimator

Header Image Source: (kzlobastov / Depositphotos)