Top 5 Myths First-Time Home Buyers Believe (and What’s Actually True)
Buying your first home is exciting, but there’s a lot of misinformation that can make the process confusing. As a first-time home buyer in San Diego, you might have heard myths that could hold you back. Let’s clear them up!
Myth #1: “I Need a 20% Down Payment to Buy a Home”
Reality: You don’t need 20% down! Many first-time home buyer programs in San Diego offer lower down payments:
- FHA loans – 3.5% down
- Conventional loans – 3%–5% down
- VA & USDA loans – 0% down (for eligible buyers)
While putting 20% down can help you avoid private mortgage insurance (PMI), many buyers successfully purchase homes with significantly less upfront cash.
Myth #2: “My Credit Has to Be Perfect to Get a Mortgage”
Reality: Many loan programs accept lower credit scores:
- FHA loans: 500–580 (depending on down payment)
- Conventional loans: Usually 620+
- VA loans: No official minimum, but typically 580–620+
Even if your score isn’t perfect, lenders consider factors like income, job stability, and debt-to-income ratio when approving loans.
Myth #3: “My Monthly Mortgage Payment Will Be My Only Cost”
Reality: Homeownership includes more than just a mortgage payment. Be sure to budget for:
- Property taxes (varies by location)
- Homeowners insurance
- HOA fees (especially if buying a condo in San Diego)
- Maintenance & repairs (1%–3% of home value per year)
- Utilities & landscaping
Many first-time buyers overlook these additional costs, leading to budget surprises.
Myth #4: “I Should Always Buy the Most Expensive Home I Can Afford”
Reality: Just because a lender approves you for a certain amount doesn’t mean you should max it out. Consider:
- Your current lifestyle expenses (travel, dining, hobbies)
- Future financial goals (starting a family, investing, retirement)
- Unexpected expenses (medical bills, car repairs)
Buying within your means ensures long-term financial stability.
Myth #5: “I Don’t Need a Real Estate Agent—I’ll Save Money by Buying Alone”
Reality: A San Diego real estate agent provides invaluable guidance throughout the buying process. They help:
- Negotiate the best price & terms
- Navigate inspections, contingencies, and contracts
- Find and qualify for first-time home buyer programs in San Diego
Since sellers typically pay the agent’s commission, having a buyer’s agent is usually free for you!
Final Thoughts
Being a first-time home buyer in San Diego means separating fact from fiction. Understanding first-time home buyer programs, working with the right professionals, and budgeting wisely will make the journey smoother and stress-free.
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