Buying Your First Home
Welcome to Our Home Buying Myths Series
Buying your first home is exciting, but it can also feel overwhelming—especially when you’re trying to separate fact from fiction. That’s why we’ve created this educational page to tackle some of the most common myths about buying a home, particularly with an FHA-insured mortgage.
At AAA Capital Funding, we believe informed buyers make confident decisions. Below, we’ll walk you through six of the most common myths we hear from first-time buyers and provide you with the real facts so you can move forward with clarity.
Six Common Home Buying Myths:
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I should use the maximum loan amount I’ve been qualified for to purchase a home.
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I know what I can afford, so I don’t need to get pre-qualified by a lender.
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If I have a lot of debt, I should pay it off before being approved.
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Rates are dropping, so I’ll get a better deal if I wait.
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A home inspection is mandatory.
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Newly built homes are maintenance-free.
Myth 1: I should use the maximum loan amount I’ve been qualified for to purchase a home.
This myth is neither true nor false—it depends on your financial situation and lifestyle.
Getting approved for a specific loan amount doesn’t mean you should spend that full amount. Lenders qualify you based on factors like your debt-to-income ratio, but they don’t take into account personal lifestyle choices—like dining out, travel, hobbies, or even your daily Starbucks run.
For example, a $10 coffee habit five days a week adds up to $200 per month—something the lender didn’t factor in. That same logic applies to gym memberships, entertainment, or other recurring personal expenses.
Instead of maxing out your budget, consider leaving yourself financial room to breathe. You’ll want funds for furniture, window treatments, moving expenses, and maybe even a few unexpected repairs after closing.
Bottom line: Just because you qualify for a certain amount doesn’t mean that’s what you should spend. Aim for a comfortable payment that fits your lifestyle—not just the maximum loan you’re eligible for.
Myth 2: I know what I can afford, so I don’t need to get pre-qualified by a lender.
This myth is not true.
Getting pre-qualified by AAA Capital Funding is one of the smartest first steps you can take. While budgeting and online calculators are helpful, they don’t consider important underwriting factors like your actual credit report, existing debts, or required mortgage reserves.
In fact, errors on your credit report—common and often unknown—can delay or derail your approval. Fixing those issues can take time, and if you’re already under contract, it could cause major delays.
Also, many real estate agents won’t even present your offer without a pre-qualification letter. Sellers want to know you’re serious and financially capable. Getting pre-qualified avoids wasted time, heartbreak, and missed opportunities.
We’ll help you understand exactly what you qualify for and walk you through all costs involved—down payment, closing costs, mortgage insurance, and more.
Ready to take the first step? Call us at 954-390-7994 or toll-free at 888-601-8344.
Myth 3: If I have a lot of debt, I should pay it off before applying.
Not necessarily.
While it may seem smart to pay down debt before applying for a mortgage, it can actually hurt your chances if done without strategy.
If your debt-to-income ratios are already within acceptable limits, your savings may be better used for your down payment, closing costs, or future emergencies. Paying off debt before you’re approved—especially without guidance—can deplete critical funds and leave you short for your transaction.
Let us help you assess your financial situation first. We’ll let you know if any debts need to be paid down to qualify, or if your money is better spent elsewhere. Don’t make financial moves before speaking with us.
Have questions about your debt? Call AAA Capital Funding at 954-390-7994 or 888-601-8344.
Myth 4: Rates are dropping, so if I wait to buy, I’ll get a better rate.
This myth is risky—and not entirely true or false.
Mortgage rates fluctuate daily, just like the stock market. While they may drop further, they can also rise without warning. Delaying your home purchase in hopes of locking in a better rate can backfire.
Here’s what could happen while you wait:
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Someone else could make an offer on your dream home.
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Home prices could rise, pushing your ideal home out of reach.
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Interest rates could rise, reducing your borrowing power or disqualifying you.
If you’re financially ready and have found the right home, don’t gamble. We can help you lock your rate or choose to float it depending on your risk tolerance and market conditions.
Talk to us at AAA Capital Funding—we’ll help you make the right decision for your circumstances.
Myth 5: A home inspection is mandatory.
This myth is not true—but that doesn’t mean you should skip it.
While a home inspection is not required by the lender (we do require an appraisal), it’s strongly recommended. A home inspection provides a detailed assessment of the property’s condition and can reveal potential issues that might not be visible to the naked eye.
Think of it as your chance to “test drive” the home. If the inspector finds problems—like faulty wiring, a leaking roof, or appliances that don’t work—you may be able to renegotiate the deal, request repairs, or back out before closing.
Remember, an appraisal estimates the market value of the home to protect the lender’s investment. An inspection protects yours.
Being proactive and informed can save you thousands and give you peace of mind.
Myth 6: Newly built homes are maintenance-free.
This myth is not true.
While a brand-new home may not need repairs right away, no home is truly “maintenance-free.” New homes still have appliances that can break, plumbing that can leak, and unexpected issues that can arise.
The idea of “maintenance-free living” often refers to homes in communities with homeowners associations (HOAs) that handle exterior upkeep—things like lawn care or pest control—not the maintenance inside your home.
In contrast, a resale home may offer more value in terms of location, layout, or budget. If you’re concerned about repairs, you can:
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Request a home inspection.
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Negotiate seller credits or repairs.
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Purchase a home warranty that covers appliances and major systems.
Whether you buy new or resale, owning a home comes with responsibility. But with the right plan—and the right lender—you’ll be ready.
Ready to Begin?
There’s no one-size-fits-all answer when it comes to buying a home. That’s why we’re here—to help guide you through the process and give you personalized advice every step of the way.
Call us today at 954-390-7994 or 888-601-8344. Let’s talk about how AAA Capital Funding can help you buy smart and buy confidently.
Ready to Feel More Confident About Buying a Home?
At AAA Capital Funding, we’re here to guide you every step of the way. Whether you’re a first-time homebuyer or exploring your options, we take the time to understand your full financial picture and help you make smart, informed decisions.
We’re your local resource for:
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Answers to common home buying questions
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Guidance on first-time buyer programs
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Clear explanations of available mortgage options
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Tips for navigating today’s housing market
Let’s work together to find the best loan solution for your needs and help you move forward with confidence.
Call us today—AAA Capital Funding is your trusted partner in homeownership.
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