Homeownership is more achievable than many people think. The biggest thing standing in the way usually isn't money or credit. It's outdated information.
Whether you're buying your first home, outgrowing your current one, or looking for the perfect place to retire, the homebuying process can look different every time. Understanding what it takes to buy a home today, no matter how much experience you have, gives you the tools to make a confident, informed decision on one of the most important purchases of your life.
The good news? Homeownership is more achievable than many people think. The biggest thing standing in the way usually isn't money or credit. It's outdated information.
Ask a room full of individuals that are dreaming of buying a home and ask what's holding them back. I am sure you'll hear the same answers:
“I don't have 20% saved.”
“My credit isn’t very good.”
“I am self-employed.”
“Rates are so high right now.”
“Renting is less expensive, so I will just wait”
Some of that advice was true decades ago. Most of it isn't true today.
Financial conditions change all the time, and outdated myths get left behind. Here are four of the most common ones, and the current truths!
Myth #1: "You need 20% down to buy a home."
The truth: Most buyers put down far less than 20%, and many loan programs are built for exactly that.
On a $400,000 home, a 20% down payment is $80,000. That number alone keeps a lot of people renting for years longer than they need to. 20% has never been a requirement, but is simply the point where most conventional loans no longer need mortgage insurance.
Here's what is actually available to qualified buyers:
| Loan type | Minimum down payment | Down payment on a $400,000 home |
|---|---|---|
| VA (eligible veterans and service members) | 0% | $0 |
| USDA (eligible rural areas) | 0% | $0 |
| Conventional | As low as 3% | $12,000 |
| FHA | As low as 3.5% | $14,000 |
Myth #2: "My credit isn't good enough, and I can't fix it."
The truth: You don't need perfect credit, past mistakes aren't permanent, and our experienced team can guide you toward how to fix your credit situation.
Your credit score is only part of the picture, and some loan programs even allow scores as low as 540 in order to qualify.
Yes, a late payment can hurt your score. But lenders also look at what you've done since. A steady history of on-time payments and consistent habits can help. Boss Mortgage even offers options for buyers who are self-employed, going through a divorce, or rebuilding after bankruptcy.
If your score isn't where it needs to be yet, that's not a dead end. It's a starting point. Our team can show you exactly what to work on and help you build a plan to get there.
Myth #3: "The lowest rate is always the best deal."
The truth: The rate is only one piece of what a loan really costs.
A rate that looks great in an ad may come with higher fees, or terms that don't fit your plans. That's why every Loan Estimate shows the APR alongside the rate. The APR folds in the interest rate plus other charges, so you can compare loans more fairly based on what is most important to you and your finances.
The best loan depends on your situation. How long do you plan to stay? How much cash do you want to keep after closing? Do you want the lowest possible payment, or to pay the home off faster?
The answers lead to the right loan type, tailored to each individual buyer's needs. We can help to compare options so that you make the most informed decision!
Myth #4: "Renting is cheaper, so I'll wait."
The truth: Rent is a housing cost too. It just doesn't build equity or your net worth.
At $2,000 a month, you'll pay $72,000 in rent over three years and $240,000 over ten, with no return. Every rent payment builds your landlord's equity. A mortgage payment builds yours.
Owning also brings benefits renting can't:
- Predictable payments. A fixed-rate mortgage locks in your principal and interest, while rent can rise at every renewal. (Taxes and insurance may still adjust annually.)
- A financial cushion. As you build equity, it can be tapped later for things like home improvements or tuition with a home equity line of credit.
- Potential appreciation. Your home can grow in value over time, growing your net worth along with it.
- Possible tax benefits. Homeowners may be able to deduct mortgage interest and property taxes. Talk to your tax professional for details.
- Freedom to make it yours. Paint the accent wall. Redo the yard. Get the puppy. No landlord approval required.
Waiting can make sense for some people. But it should be a choice you make with real numbers, not a default you settle into because of a myth.
So, what does it actually take?
A plan, the right loan, and a team in your corner. The path looks like this:
- Get approved. Apply, share your financial documents, and get pre-approved for a specific loan amount. Do this before you fall in love with a house, so you shop with confidence.
- Find your home. Team up with a real estate agent, go under contract, sign your loan disclosures, and get a home inspection.
- Own your home, like a boss. We order the appraisal, your loan gets final approval, you sign your closing documents, and you get your keys.