6 Common First-Time Homebuyer Myths, Debunked

I was sitting across from a couple last year, two engineers, high income, zero debt, and they told me they figured they were "at least five years away" from buying. When I asked why, everything they listed was something they'd heard secondhand. From a coworker. From a cousin. From a comment section. None of it was true. I've helped over 200 families buy and sell homes here on the Peninsula, and I can tell you the biggest thing standing between most first-time buyers and their first home isn't money. It's bad information. So let's clear some of it up.

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

The fact: This is the myth I hear the most, and it stops more people from even starting than any other. Twenty percent down is one option, not a requirement. There are loan programs designed specifically for first-time buyers that allow significantly smaller down payments, and California has assistance programs (like CalHFA) that can help with the down payment itself.

Here's my relatable example: I've had clients who spent years saving toward a 20% target. At the same time, home prices kept rising, even though they could have qualified for a program much earlier. The right move isn't to guess at a number. It's to ask a lender what you actually qualify for today. You might be closer than you think.

Every loan is different, so always confirm your specific down payment options with a licensed lender.

Sources: CFPB: Figure out how much you want to spend | CalHFA: MyHome Assistance Program 

Myth #2: "My credit has to be perfect."

The fact: You don't need an 800 credit score to buy a home. Different loan programs have different credit requirements, and plenty of buyers qualify with scores they'd describe as "fine, not amazing."

What matters more is knowing where you stand and what (if anything) needs work. I've watched clients meaningfully raise their scores in a few months just by paying down a credit card balance and fixing one reporting error. If your credit isn't where you want it, that's not a dead end. It's a to-do list. A good lender will tell you exactly what to focus on.

Source: CFPB: FHA loans 

Myth #3: "I should find the house first, then worry about financing."

The fact: This one breaks hearts, honestly. I've seen buyers fall in love with a home, then scramble for pre-approval while another offer wins the house.

In a competitive market like ours, sellers take offers seriously when there's a pre-approval attached. Getting pre-approved before you tour also tells you your real budget, so you're looking at homes you can actually buy instead of window shopping. Now, to be clear: the very first step is deciding you're ready to buy at all, and only you can approve that one. But once you've made that decision, financing comes before falling in love with a house. Think of it like checking the weather before you plan the hike. It's not the fun part, but it makes the fun part work.

Sources: CFPB: Prequalification vs. preapproval | CFPB: Get a preapproval letter 

Myth #4: "The down payment is the only money I need upfront."

The fact: The down payment gets all the attention, but it's not the whole picture. There are also closing costs, which cover things like lender fees, title, escrow, and prepaid items like property taxes and insurance. Sometimes these can be negotiated as credits from the seller, something we've done for clients on the right deal, but you want to plan for them either way.

I'd rather you know this now than get surprised two weeks before closing. When we sit down together, we'll walk through the full cost picture so there are no "wait, what's this?" moments.

Your lender will give you an itemized estimate of your specific costs early in the process.

Sources: CFPB: What fees are paid at closing and who pays them | CFPB: Get to know loan costs 

Myth #5: "I can't afford a buyer's agent."

The fact: A lot of first-time buyers assume having an agent means a big bill they have to pay out of pocket, so they go it alone. In reality, how your agent gets paid is discussed and agreed on upfront before you ever write an offer. In many transactions, there are options for how the deal is structured.

What I want you to take away is this: representation isn't a luxury. Your agent's job is to negotiate for you, catch problems in disclosures, and protect you at every step of the biggest purchase of your life. The sellers have someone in their corner. You should, too.

Source: NAR: What the settlement means for homebuyers 

Myth #6: "I should wait for the perfect time to buy."

The fact is: I've been doing this since 2017, and I've never once met a buyer who timed the market perfectly. Nobody can, including me, and I'd be careful with anyone who claims otherwise.

What I have seen, over and over, is that the right time to buy is personal, not seasonal. It comes down to your income, your savings, your plans for the next several years, and whether the numbers work for your life. Some of my happiest clients bought in months everyone told them were "bad" months, because the right house showed up and they were ready. Ready beats lucky, every time.

Helpful resource: CFPB: Preparing to buy and setting your budget 

Ready to swap the myths for real answers?

If any of these myths have been sitting in the back of your head, let's replace them with facts that apply to you, not to a comment section.

Here's the easiest first step: get pre-approved, or if you're not sure you're ready for that yet, start with a no-pressure conversation. I'll connect you with a trusted lender, answer your questions honestly, and help you figure out where you actually stand.

Email me at [email protected] or call/text (415) 480-7738. You can also start browsing homes at guillean.kineticrealestate.com.

Guillean Arradaza | Kinetic Real Estate | DRE #02023642

This post is for general education and isn't financial or lending advice. Loan programs, qualification requirements, and costs vary. Always consult a licensed lender about your specific situation.