* **Myth: 20% Down Payment Required:** 78% of first-time homebuyers put less than 20% down (NAR). FHA loans allow as little as 3.5% down.
* **Myth: Need Perfect Credit:** While a higher score yields better rates, FHA loans can be obtained with scores as low as 500-580. Median credit score for approved mortgages in 2023 was around 740 (Experian).
* **Myth: Pre-Approval Guarantees a Loan:** Pre-approval indicates potential qualification, but final approval depends on appraisal, title check, and continued financial stability.
* **Myth: Fixed-Rate Mortgages Are Always Best:** Adjustable-rate mortgages (ARMs) can offer lower initial rates, beneficial if planning to move or refinance soon. Consider the risk of rate increases.
* **Myth: Mortgage Rates Are the Only Cost:** Closing costs in Florida average 2-5% of the loan amount. Factor in property taxes, homeowner’s insurance, and potential HOA fees.
* **Myth: Only Banks Offer Mortgages:** Credit unions, online lenders, and mortgage brokers are viable alternatives often offering competitive rates and terms.
* **Myth: Refinancing Is Only for Lower Rates:** Refinancing can shorten loan terms, switch from ARM to fixed-rate, or tap into home equity.
