First-Time Home Buying Tips: Don’t Be Fooled by These 10 Myths

Buying your first home can be an exciting experience, but it can also be confusing and overwhelming. There are a lot of myths out there about buying a home, and it’s important to know the truth before you start looking for a property. This blog post will dispel some of the most common myths about buying a home. It will also provide some helpful tips to make the process easier for you. So don’t be fooled by these myths — read on for the real scoop.

Myth #1: You need a 20% down payment to buy a home

One of the most common myths about buying a home is that you need to have a 20% down payment to qualify for a mortgage. The truth is that a variety of mortgage products are available that require much less than 20% down. Many lenders, including CityWorth Loans, now offer low-down-payment options that allow first-time buyers to purchase a home with as little as 3% down or even 0% for Veterans. Additionally, there are innovative programs like DubbleUpp where they will find investors to cover your down payment and share in large repairs in exchange for some of your future equity.

Myth #2: You need a high credit score to buy a home

When you’re a first-time homebuyer, there are a lot of myths circulating about the process. One of the most common myths is that you need a high credit score to buy a house. The truth is, you don’t need a perfect credit score to qualify for a mortgage. In fact, you can still qualify for a mortgage with a credit score as low as 580. The key is to have solid employment history and proof of income. Lenders will also look at your debt-to-income ratio to determine whether you’re able to afford the monthly mortgage payments. So, if you’re wondering whether you can buy a house with less than perfect credit, the answer is yes. Just be prepared to provide extra documentation to your lender.

CityWorth Loans will even work with you to improve your credit score so you get access to better rates.  They can pull your current credit report, run through scenarios on how to increase your score, and then help you along the way.

Myth #3: Renting is cheaper than buying a home

It’s a common myth that renting is always cheaper than buying a home. While it is true that the upfront costs of buying a home are higher than renting, there are plenty of situations where it makes more financial sense to buy a home instead. For one thing, the monthly payments on a mortgage are often very similar to the cost of rent, and over time, you’ll build equity in your home rather than continuing to pay someone else’s mortgage. Additionally, when you own a home, you can take advantage of tax breaks that can save you thousands of dollars each year. So while renting might be the right choice for some people, it’s not always the cheaper option.

Myth #4: Your budget should be based on your lender’s approval

Many first-time homebuyers believe that they should base their budget on the amount that their lender approves them for. However, this is a myth. The truth is that your budget should be based on what you can afford, not on what your lender is willing to lend you. Just because you are approved for a certain loan amount does not mean that you should necessarily borrow the full amount. Instead, consider your income, debts, and other financial obligations when creating your budget. This will help you to determine how much house you can truly afford, and it will help you to avoid becoming overextended financially.

Myth #5: If you still have student debts, you won’t be eligible for a mortgage

Despite what many people believe, having student debt does not automatically disqualify you from getting a mortgage. While it’s true that lenders will consider your debt-to-income ratio when determining whether to give you a loan, a number of other factors come into play as well. For example, if you have a steady job and a good credit score, your chances of getting a loan are much higher than someone who doesn’t. Additionally, the type of loan you’re seeking can also affect your eligibility. For example, government-backed loans such as FHA or VA loans tend to be more accessible for those with student debt. So, if you’re a first-time homebuyer with student debt, don’t despair — there are still plenty of financing options available to you.

Myth #6: Your only up-front cost is your down payment

Another common myth about buying a home is that your only up-front cost is the down payment. While the down payment is certainly a significant expense, many other costs must be considered when budgeting for a new home. For example, closing costs, which the buyer typically pays, can add up to several thousand dollars. In addition, buyers should expect to pay for a home inspection, appraisal, and any necessary repairs or renovations. By being aware of all of the potential costs associated with buying a home, you can avoid being caught off guard by unexpected expenses.

Myth #7: Real Estate agents are expensive

Choosing to work with a real estate agent when buying your first home is one of the smartest decisions you can make. For one thing, real estate agents are experts in the field and know all the ins and outs of the home-buying process. They can help you find the right property, negotiate the best price, and navigate the often-complex legal paperwork. Perhaps most importantly, a good real estate agent will be your advocate throughout the entire process, looking out for your best interests and making sure that you don’t get taken advantage of. While it is true that agents do receive a commission on the sale of a home, their fees are generally paid by the seller. This means that, as a buyer, you can have access to experienced professionals without having to pay anything out of pocket.

Myth #8: Don’t get a real estate agent until you’re ready to buy

It’s a common myth that first-time homebuyers shouldn’t get a real estate agent until they’re ready to buy. The logic behind this myth is that real estate agents are paid on commission, so they’re not motivated to help you unless you’re ready to buy. However, this is simply not true. Our CityWorth team is happy to help you even if you’re not ready to buy. In fact, we specialize in working with first-time home buyers. We can provide valuable guidance and advice throughout the entire process, from finding the right property to negotiating the best price. If you’re a first-time homebuyer, don’t be afraid to get a real estate agent. They can be a valuable asset during your home-buying debut.

Myth #9: Fixer-uppers are more budget-friendly

For many first-time home buyers, the appeal of a fixer-upper is undeniable. After all, it seems like a great way to save money on your purchase. However, the reality is often quite different. Fixer-uppers can be costly and time-consuming, and they often come with a lot of hidden costs. In addition, unless you’re an experienced handyman, it’s likely that you’ll need to hire someone to do most of the work for you. As a result, fixer-uppers are often not as budget-friendly as they first appear. If you’re looking for a way to save money on your first home purchase, it’s usually best to buy a property that doesn’t require any major repairs.

Myth #10: You can’t buy a home if you’re self-employed

Despite what some may think, you can absolutely buy a home if you are self-employed. A lot of first-time homebuyers mistakenly believe that they won’t qualify for a mortgage because they don’t have a regular 9-5 job with a steady income. However, this simply isn’t true. There are a number of ways to prove your income as a self-employed individual, such as providing tax returns, financial statements, and bank records. As long as you can show that you have a reliable source of income, you should have no problem qualifying for a mortgage. Don’t let this myth stop you from owning your own home.


There are a lot of myths about first-time home buying. However, the reality is that buying a home doesn’t have to be complicated or stressful. With a little knowledge and preparation and the CityWorth team backing you up, you can find the perfect property and navigate the process with ease.

Happy house hunting!

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