Myth #1: You Need 20% Down to Buy a Home

A 20% down payment can have advantages, but it isn’t required for every mortgage.

Depending on your financial situation and the loan program, there may be options available with significantly less money down. Conventional, FHA and VA loans all have different requirements, and some buyers may also qualify for additional programs or incentives.

Before assuming you need to save 20%, talk with a lender about the options available to you. You may be closer to buying a home than you think.

Myth #2: You Should Wait Until Interest Rates Drop

Trying to perfectly time the housing market is difficult. Interest rates may change, but so can home prices, inventory and competition from other buyers.

Instead of focusing on a specific rate, look at the bigger picture. Does the monthly payment work for your budget? Are there homes available that meet your needs? How long do you plan to stay in the home?

If the numbers make sense for you now, waiting for the “perfect” market may not always be the best move.

Myth #3: New Construction Is Always More Expensive

The listing price doesn’t tell the entire story.

When comparing a new home with a resale home, it’s worth considering what you may need to spend after moving in. An older home could need a new HVAC system, roof, appliances, windows or other repairs and updates sooner than expected.

With new construction, those systems are new and typically covered by warranties. Newer homes may also offer improved energy efficiency and lower maintenance needs during the first several years of ownership.

Every home is different, but comparing the total cost of ownership can give you a much clearer picture than comparing purchase prices alone.

Myth #4: You Need Perfect Credit to Buy a Home

You don’t need a perfect credit score to become a homeowner.

Credit is an important part of qualifying for a mortgage, but lenders consider several factors when reviewing an application. Different loan programs also have different credit requirements.

Even if you’re not sure you’re ready to buy, speaking with a lender can be a useful first step. They can help you understand where you currently stand and, if necessary, what you can work on to prepare for a future purchase.

Myth #5: You Shouldn’t Talk to a Builder Until You’re Ready to Buy

You don’t have to be ready to sign a contract before visiting a community or talking with a builder.

Starting your research early gives you time to compare floor plans, communities, pricing, financing options and timelines. If you’re interested in building, it can also help you understand how long the process may take and what decisions you’ll need to make along the way.

For buyers with a shorter timeline, asking early can also help you learn about Quick Move-In homes that are already under construction or completed.

At Mandalay Homes, our sales team is here to answer questions whether you’re ready to purchase today or simply starting to explore your options.

Start With the Right Information

There isn’t one right way or one perfect time to buy a home. Your budget, timeline and priorities are what matter most.

The more you know before you begin, the easier it is to separate common homebuying myths from the information that actually applies to you.