First-Time Buyer Myths Busted: 5 Things You Need to Know Before Buying

Joshualee
Oct 10
2 min read

San Mateo Realtor | First-Time Buyer Specialist | Guiding Your Smartest First Move

Buying your first home in the Bay Area can feel overwhelming especially with so many myths floating around online. Knowing the truth can save you time, stress, and money.

Here’s your quick-hit guide to busting common first-time buyer myths.

❌ Myth 1: You Need 20% Down

❌ Myth 2: You Need Perfect Credit

✅ Reality: Lenders look at your whole financial picture, not just your credit score. Factors like income stability, debt-to-income ratio, and savings play a role. Many buyers with credit scores in the mid-600s qualify for mortgages, and there are programs designed for those working on rebuilding credit.

❌ Myth 3: You’re “Locked In” Forever

✅ Reality: Buying your first home doesn’t mean it’s your forever home. Many buyers move up within 5–7 years as their needs change or as they build equity. You can treat your first home as a stepping stone an investment that gives you options for the future.

❌ Myth 4: The Market Is Too Crazy Right Now

✅ Reality: There’s no such thing as a perfect market. While interest rates and home prices fluctuate, timing the market perfectly is nearly impossible. The key is to have a strategy that fits your needs and goals. With the right plan, you can still make a smart move even in a shifting market.

❌ Myth 5: Renting Is Always Cheaper

✅ Reality: Rent payments go to your landlord with nothing to show for it in the long run. Homeownership builds equity over time, giving you ownership of an asset that can grow in value. Even with current interest rates, monthly mortgage payments may be similar to or even lower than rent in some areas plus you gain stability and tax advantages. / With current interest rates still an investment to your networth instead of paying rent which is just an expense with no return.