
When buying a home, misinformation can be one of the biggest obstacles between buyers and their dream property. Let’s flip the script on some of the most common mortgage misconceptions we hear from clients every day, and set the record straight.
Myth #1: "I need a 20% down payment to buy a home."
Reality: While a 20% down payment can help you avoid Private Mortgage Insurance (PMI), it's not required. Many loan programs—like FHA, VA, and some conventional loans—offer low or zero down payment options. Depending on your financial situation and the loan you qualify for, you could buy a home with as little as 3% down.
Myth #2: "I need perfect credit to get a mortgage."
Reality: A perfect credit score is nice, but it's unnecessary. Different loan programs accommodate a range of credit scores, and even if yours is on the lower end, that doesn't mean you're out of the running. We work with buyers every day who are rebuilding credit or have had bumps in the road. What matters most is finding the right solution for your situation.
Myth #3: "Getting pre-approved is the same as being pre-qualified."
Reality: While often used interchangeably, these terms mean very different things. A pre-qualification is a quick estimate based on self-reported financial info. A pre-approval involves a complete application and credit check, making it more reliable and attractive to sellers.
Myth #4: "The lowest interest rate is always the best deal."
Reality: A low rate can be a great benefit when paired with the right loan terms. A loan with the lowest rate might come with higher fees or shorter terms that don't work for your goals. The best deal fits your financial picture holistically, not just the headline number..
Myth #5: "Once I'm approved, I'm in the clear."
Reality: Final approval happens at closing. That means your lender will continue verifying your financial situation until the deal is done. Any major purchases, new credit lines, or employment changes could affect your approval. Stay steady and transparent with your lender through the final signature.
Let's Talk Facts, Not Fiction
No matter where you are in your homebuying journey, we’re here to help you move forward with clarity and confidence. Contact the Sharpe Mortgage team at (336) 575-9448 for more information or to start your pre-approval process. We're ready to help you make smart, informed decisions about your next move.