Here's a scenario that plays out more often than we'd like: a first-time buyer falls in love with a home, starts imagining where the Christmas tree will go, and then finds out it's outside their budget.

It's disappointing—and almost always avoidable.

A good starting point is keeping your monthly housing payment (mortgage, property taxes, homeowners insurance, and HOA dues, if applicable) at roughly 28–30% of your gross monthly income.

Notice we said starting point.

A lender may approve you for more than you're comfortable spending, and that's okay. Your ideal budget should leave room for vacations, hobbies, date nights, emergencies, and all the other parts of life that matter.

Buying a home should improve your life—not consume your paycheck.

Bottom Line: Just because you can borrow a certain amount doesn't mean you should.

Short answer?

No.

This is probably the biggest myth in real estate.

Many first-time buyers qualify with as little as 3% or 3.5% down, and some loan programs—even down payment assistance programs—require even less.

A larger down payment can lower your monthly payment and may help you avoid private mortgage insurance (PMI), but waiting years to save 20% isn't always the smartest financial move.

The right down payment is the one that gets you into a home while still leaving money in the bank for life's inevitable surprises.

Bottom Line: Don't let the 20% myth keep you on the sidelines.

There's no magic number.

Different loan programs have different minimum requirements, and lenders look at more than just your score.

That said, your credit score does influence:

• the loan programs available to you

• your interest rate

• your monthly payment

Even a modest improvement in your score before buying could save you thousands over the life of your loan.

If you're worried your score isn't high enough, don't guess.

Talk to a lender. Sometimes the fixes are much simpler than people expect.

Bottom Line: A simple 15-minute conversation with a lender can help you better understand how to raise your credit score, which can end up saving you thousands of dollars.

People use these terms interchangeably.

They aren't the same thing.

A pre-qualification is essentially an educated estimate based on information you provide.

A pre-approval means a lender has actually reviewed your income, assets, employment, and credit.

When you're ready to write an offer, sellers take pre-approvals much more seriously because they've already been verified.

If you're serious about buying, skip the pre-qualification and go straight to a pre-approval.

Bottom Line: Pre-approval gives you confidence—and shows sellers you're serious.

The process is usually less intimidating than people expect.

Most lenders will ask for:

• Recent pay stubs

• W-2s or tax returns

• Bank statements

• Government-issued ID

• Employment information

If you're self-employed or own a business, expect to provide additional documentation.

Having these documents ready ahead of time can make the process surprisingly smooth.

Bottom Line: A little preparation now saves a lot of stress later.

Not necessarily.

Lenders look at your debt-to-income ratio (DTI)—a comparison of your monthly debt payments to your income.

That means:

• student loans

• car payments

• minimum credit card payments

• personal loans

all factor into the equation.

Having debt doesn't automatically disqualify you.

It's simply one piece of your overall financial picture.

Bottom Line: It's not about whether you have debt—it's about whether your budget can comfortably support a mortgage alongside it.

This is one of the biggest misconceptions we hear.

Yes, a mortgage application creates a hard inquiry.

But credit scoring models recognize that people shop around for mortgage rates.

Multiple mortgage inquiries made within a short period are generally treated as a single inquiry for scoring purposes.

Don't let fear of a temporary credit dip keep you from getting the information you need.

Bottom Line: Shopping for a mortgage is normal, and your credit score is designed to account for it.

This deserves its own list.

Once you're pre-approved:

• Don't finance furniture.

• Don't buy a new car.

• Don't open new credit cards.

• Don't quit your job.

• Don't move large amounts of money between accounts without talking to your lender first.

Remember, your lender will likely verify your finances again before closing.

We've seen buyers unintentionally delay—or even jeopardize—their purchase over a last-minute furniture shopping spree.

Bottom Line: Until you have the keys, keep your finances as boring as possible.

The down payment isn't the whole story.

You'll also want to budget for:

• Closing costs

• Home inspection

• Appraisal

• Earnest money deposit

• Moving expenses

• Utility deposits

• A few inevitable trips to the hardware store

Planning for these expenses ahead of time makes closing day much less stressful.

Bottom Line: The goal isn't just getting into the house—it's being financially comfortable once you're there.

Absolutely.

Meeting with a lender isn't a commitment.

It's a conversation.

You'll learn:

• what you can comfortably afford

• which loan programs fit your situation

• how much cash you'll likely need

• what steps (if any) could strengthen your buying position

Even if you're six months—or a year—from buying, those insights help you make smarter financial decisions today.

Bottom Line: The earlier you understand your options, the more confident you'll feel when it's time to buy.