Buying a home is a dream for many families, but sometimes that dream feels out of reach not because people can’t qualify, but because they’ve been told the wrong things. Maybe someone said you need a 20% down payment. Or maybe you heard that student loans or past credit mistakes will stop you from getting approved.
Here’s the truth: most of these beliefs are mortgage myths for homebuyers and they keep too many people renting when they could be owning. At 1st Advantage Mortgage Charlotte, we help buyers in North Carolina and South Carolina cut through the noise.
Be it a first time home buyer in Gaston County or you want to refinance in Dallas, NC: it is our mission to make you see what is and what is not real when it comes to purchasing a home.
This guide will help you overcome the most common myths that prevent individuals from becoming homeowners and learn how to enter the game with confidence. Read on to learn more.
Myth #1: You Need a 20% Down Payment to Buy a Home
Let’s start with the most common myth. It has taken years to get people to think that you cannot purchase a house without a 20% down payment. That’s simply not true. That’s simply not true.
There are plenty of programs that require much less:
- FHA loans Belmont NC allow down payments as low as 3.5%.
- VA home loans Gastonia often require no down payment at all.
- USDA loans Greenville SC also offer zero down payment options for eligible rural and suburban areas.
Even conventional loans have flexible options for qualified borrowers with as little as 3% down. So, don’t let the size of your savings account scare you off. With the help of a local mortgage lender NC and SC, you may already have enough to buy your dream home.
Pro Tip: Down payment assistance programs in North Carolina and South Carolina can help you cover part of your costs. Ask your Charlotte mortgage broker about what’s available in your area.
Myth #2: You Need Perfect Credit to Qualify
Think your credit score has to be flawless? Think again. Although the higher your credit score is the more you are likely to be offered better rates, there are numerous programs that are available to buyers with still developing or damaged credit.
- Credit scores get as low as 580 (with compensating factors) with FHA loans.
- VA loans are flexible and focus more on your overall financial picture than just your score.
- Conventional loans may accept mid-range credit if your income and debt ratios are strong.
At 1st Advantage Mortgage Charlotte, we help you see the full picture; not just a number. Our loan experts will examine your credit and put options before your eyes and lead you in the right direction. The key to this is not to be perfect but to be ready.
Myth #3: Renting Is Cheaper Than Buying
This is one that catches a number of new customers off guard. Admittedly, renting is cheaper on the surface with no property taxes, no maintenance, and no large down-payment. However, in the long run, you are paying the mortgage of someone other than your own.
Let’s break it down:
- All rent checks establish the equity of your landlord, not yours.
- Homeownership allows you to gain wealth in appreciation.
- Fixed-rate mortgages imply that you will be paying the same rate of payment, whereas rent tends to increase annually.
Even in places such as Greenville, SC, where the cost of an apartment is relatively low compared to larger places, the cost of buying can actually be cheaper per month than renting. When you work with a mortgage broker North Carolina, South Carolina like 1st Advantage Mortgage, we’ll show you how homeownership can fit into your budget more easily than you think.
Myth #4: You Can’t Get a Mortgage if You Have Student Loans or Debt
Many young buyers believe student loans or credit card debt disqualify them automatically. However, lenders consider the debt-to-income (DTI) ratio rather than the number of loans. In this case, your salary is sufficient to make all debt payments and meet other living costs, then you can definitely qualify.
At 1st Advantage Mortgage, we’ve helped teachers, nurses and new graduates qualify for FHA vs Conventional loans that work with their budget. Don’t assume debt is a deal-breaker. Talk to a mortgage lender near me and let the numbers speak for themselves.
Myth #5: You Should Always Go with Your Bank
It feels convenient to get a loan from the same place that holds your checking account, but convenience doesn’t always mean savings. Banks can only offer their own products. A Charlotte mortgage broker can access dozens of lenders with different loan programs, rates and terms.
Here’s why that matters:
- Brokers can often find better rates than a single bank.
- You get personalized options, not one standard loan.
- The process is faster and more flexible, especially for first-time buyers.
Whether you’re comparing mortgage programs Charlotte metro, Greenville SC mortgage rates, or Dallas NC refinance options, a broker ensures you’re getting the best deal available, not just what one bank offers.
Myth #6: Pre-Approval Isn’t Necessary Until You Find a Home
This one’s risky. Waiting until you find your dream home to get mortgage pre-approval Charlotte can cause delays and sometimes cost you the home. Pre-approval is your proof of readiness. It shows sellers and agents that you’re serious and financially qualified. In competitive markets like Belmont or Mount Holly, having pre-approval gives you an edge.
Think of it as your “golden ticket.” It helps you act fast when you find the perfect place. At 1st Advantage Mortgage Charlotte, our pre-approval process is quick and easy. You’ll know how much you can afford and what programs fit you best before you start house hunting.
Myth #7: Refinancing Isn’t Worth It Unless Rates Drop a Lot
Refinancing isn’t just about chasing lower rates; it’s about improving your overall financial picture. With refinance mortgage 2025 programs, homeowners across NC and SC are lowering monthly payments, paying off debt, and even switching to shorter loan terms. A small rate drop (even 0.5%) can mean major savings over time. For example:
- On a $300,000 loan, reducing your rate by 0.5% can save you nearly $90 a month, or $1,000 a year.
At 1st Advantage Mortgage, our team helps you explore refinance options NC SC to see what’s best for your situation.
Myth #8: The Mortgage Process Is Too Complicated
Sure, there’s paperwork involved but with the right guidance, it’s not overwhelming. When you work with a local mortgage lender NC and SC like 1st Advantage Mortgage, we walk you through every step:
- Application and pre-approval
- Loan selection
- Underwriting and appraisal
- Home loan closing Greenville SC
Everything is handled locally, so you always know who to call and what’s next. No endless waiting or confusing jargon; just real answers from real people.
Myth #9: You Can’t Buy a Home if You’re Self-Employed
If you’re self-employed, you might think lenders will turn you away. Not true! You can absolutely qualify, you just need to show consistent income and documentation. Instead of W-2s, you’ll provide tax returns, 1099s, or profit-and-loss statements. Our team works with many self-employed clients from small business owners in Gastonia to freelancers in Greenville, SC to help them secure financing that fits their lifestyle.
Myth #10: You’ll Be Stuck with the Same Loan Forever
Your first mortgage isn’t your last. Life changes, and your loan can change with it.You can refinance, switch programs, or explore FHA and VA refinance options 2025 if you want better rates or shorter terms. At 1st Advantage Mortgage Charlotte, we help you plan ahead; not just for your first purchase, but for your long-term financial success. Homeownership isn’t a one-time event. It’s a journey and we’re here for every step.
Local Expertise That Works for You
The mortgage world can feel confusing, but when you work with people who know your area, it gets a whole lot easier. Our team serves homebuyers and homeowners in Charlotte, Gastonia, Belmont, Mount Holly, Dallas and Greenville SC.
We are familiar with the areas, house prices or local tax rates and this means that we can get the loans to suit your life and not just a digit on a computer screen. You will get straight answers, honest advice and get personalized support whether you are purchasing your first home or going for the best home loan rates.
The 1st Advantage Difference: Local, Honest, and Always on Your Side
At 1st Advantage Mortgage Charlotte, we believe homeownership should be simple, not stressful. Here’s why buyers across NC and SC trust us:
- Local Roots, Real People: We live and work where you do, so we understand your market inside and out.
- Personal Guidance: You’re never just a number; you get one-on-one help from start to finish.
- Smart Savings: We shop multiple lenders to find rates and terms that fit your goals.
- Consistent Support: From your first home loan to your next refinance, we’re here whenever you need us.
We don’t just process loans, we build relationships.
FAQs
Question 1: Do I need a 20% down payment to buy a home?
Answer: No! Programs like FHA, VA, and USDA loans allow low or no down payments. Talk to a local mortgage lender NC and SC to see which one fits your budget.
Question 2: Will bad credit stop me from getting approved?
Answer: Not necessarily. Lenders look at your whole financial picture. Many buyers qualify for FHA loans even with lower credit scores.
Question 3: Can I refinance my loan in 2025 even if rates haven’t dropped much?
Answer: Absolutely. You can still save money refinancing by decreasing your monthly payment or shortening your term and eliminating mortgage insurance.
Final Words:
Buying a home shouldn’t feel like chasing rumors; yet many buyers still miss out because of old mortgage myths for homebuyers that simply aren’t true. The truth? You don’t need perfect credit, a massive down payment or years of savings to become a homeowner. You just need the right guidance.
At 1st Advantage Mortgage, we’re here to replace fear with facts and confusion with confidence. In Charlotte, Gastonia, Belmont, Mount Holly, Dallas or Greenville SC, our welcoming staff will clearly and patiently without pressure take you through each and every step.
Don’t let outdated myths hold you back another day. Contact 1st Advantage Mortgage today and let’s turn what you’ve heard into what’s actually possible; the keys to your new home.