Buying a home is one of life’s biggest, most exciting decisions. And because it requires a lot of careful consideration and planning, many would-be homeowners may hesitate to take the first step. But how many of these doubts about the housing market and mortgage process are based in reality — and how many are just myths?
Let’s explore the truth behind some of the most common barriers that keep buyers from opening the door to their dream home.
Myth: I need to put 20% down on a house.
The Truth: 20% is just a benchmark, but it often isn’t required. You may need as little as 3% or, with some programs, no down payment at all.* At LMCU, we offer specialized mortgage programs with exclusive down payment savings for first-time homebuyers, community heroes, veterans, rural development, and more!
Myth: It’s better to get a mortgage through a bank than a credit union.
The Truth: Credit unions offer many benefits over banks. Since credit unions serve their members, not their shareholders, they can offer lower rates and flexible terms. They also typically offer exclusive products and personalized service. Plus, a credit union like us will service your loan through its entirety, so you always know where your payments are going.
Myth: I need to find the home I want before speaking with a lender.
The Truth: Even before you find a home you like, getting pre-qualified streamlines the process and sets you up for success. It’s easy and free to get pre-qualified, and it will give you a better idea of what homes you can afford when you start looking. Plus, it will make you more appealing to sellers!
Myth: Mortgage rates are too volatile to buy right now.
The Truth: Despite what you might hear in the news or online, rates have actually shown less volatility over the past year, with the 30-year fixed mortgage rates have largely stayed put at 6.74% APR.**
Myth: It’s too risky to buy now, because the market is going to crash soon.
The Truth: Waiting can be even costlier. Experts project that home prices will only grow for the next 5 years, so don’t let today’s uncertainty cost you money, momentum, and motivation in the long run.
Myth: I should just wait until the mortgage rates drop.
The Truth: While rates may ease slightly by the end of 2025, that’s a big “may.” Plus, you can always buy now and refinance your mortgage later to get a better rate. If you find your dream home, buy it while you can!
Next time you find yourself doubting whether you’re ready to buy a home, just remember: the market conditions are never going to be perfect. What matters is that you have a dream of owning a house, you’ve found a dream home you’d love to call your own, and you have a dream team on your side to help you find an affordable mortgage. At LMCU, we helped over 8,000 families make their move last year alone — and we’d love to help you next.
If you’re ready to get started or have any questions, call us at (844) 754-6280, connect with a loan officer, or stop by your local branch.
*For well-qualified borrowers. The interest on the portion of the loan that exceeds the value of the dwelling is not tax deductible. Please consult your tax advisor. **APR = Annual Percentage Rate. LMCU NMLS# 442967.
