Common Myths About Buying a Home (And the Truth Behind Them)

Buying a home is one of the biggest financial decisions most people will ever make—but it’s also surrounded by a lot of misinformation. In Southwest Michigan, we often meet buyers who delay or avoid homeownership because of myths that simply aren’t true.

Let’s break down some of the most common myths about buying a home and replace them with facts that can help you make confident, informed decisions.

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

The truth: Many buyers qualify with far less than 20% down.

While putting 20% down can eliminate private mortgage insurance (PMI), it’s far from required. In Michigan, buyers may qualify for:

• Conventional loans with as little as 3% down

• FHA loans with 3.5% down

• VA loans with 0% down for eligible veterans

• Rural development loans (USDA) in select areas

In communities like Kalamazoo, Portage, and Mattawan, there are also local and state programs that can help with down payment assistance.

Myth #2: You Need Perfect Credit to Buy a Home

The truth: You don’t need perfect credit—just qualifying credit.

Lenders look at more than just your score. They also consider:

• Payment history

• Income and employment stability

• Debt-to-income ratio

Many buyers qualify with credit scores lower than they expect. If your credit needs improvement, a local lender can often help you create a short-term plan to get mortgage-ready.

Myth #3: It’s Better to Wait Until the Market Is “Perfect”

The truth: Timing the market is extremely difficult—timing your life matters more.

Markets shift constantly, but waiting for the “perfect” moment often means missing opportunities. Many buyers in Southwest Michigan who waited for rates or prices to drop found themselves facing more competition or higher rents instead.

The best time to buy is often when:

• Your finances are stable

• You plan to stay in the home for several years

• Homeownership fits your lifestyle and goals

Myth #4: Renting Is Always Cheaper Than Buying

The truth: Renting may cost less upfront, but it doesn’t build long-term wealth.

Rent payments don’t create equity, and rents typically increase over time. Homeownership allows you to:

• Build equity with each payment

• Benefit from appreciation

• Lock in a more predictable housing cost

In many Southwest Michigan markets, monthly mortgage payments can be comparable to rent—especially over the long term.

Myth #5: I Can’t Buy a Home With Student Loans or Other Debt

The truth: Debt doesn’t automatically disqualify you.

What matters most is your debt-to-income ratio, not whether you have debt at all. Many buyers successfully purchase homes while carrying:

• Student loans

• Car payments

• Credit cards

A knowledgeable lender can help determine how much home you can comfortably afford.

Myth #6: The Homebuying Process Is Too Complicated

The truth: With the right team, the process is manageable and guided.

Yes, buying a home involves steps—but you don’t have to navigate them alone. A trusted local real estate team helps with:

• Understanding each phase of the process

• Coordinating inspections and timelines

• Negotiating on your behalf

• Avoiding common pitfalls

Education and guidance make the experience far less overwhelming than many expect.

Myth #7: I Should Wait Until I Have “More Saved”

The truth: Waiting can sometimes cost more in the long run.

As home prices and rents rise, waiting may mean:

• Higher purchase prices

• Increased monthly payments

• Lost years of equity growth

Buying when you’re financially ready—not when everything feels “perfect”—often leads to better long-term outcomes.

Final Thoughts: Don’t Let Myths Hold You Back

Misinformation can delay great opportunities. Understanding the facts about buying a home empowers you to make decisions that align with your goals—whether you’re buying your first home or your next one.

If you’re considering buying in Southwest Michigan and want honest answers (not sales pressure), the Keefer Fischer Real Estate Team is here to help you sort through the myths, understand your options, and move forward with confidence.