New Challenges
Buying a home in California is already a challenge. From high property prices to stiff competition, the last thing buyers need is misinformation. At LBC Mortgage, we work with California buyers every day to cut through the noise and focus on what truly matters. Outdated mortgage myths can hold buyers back from taking the next step toward homeownership, or worse, cost them money in the long run.
Today’s market is shaped by new lending programs, changing interest rates, and evolving borrower expectations. But myths from five or ten years ago are still circulating — often passed on by well-meaning friends or internet forums. We’re here to set the record straight and help you make smarter, faster mortgage decisions in 2026.
Myth: You Need 20% Down to Buy a Home
Fact: Lower Down Payments Are Common and Widely Accepted
One of the most common myths in the mortgage world is the idea that you must put down 20% to buy a home. While a 20% down payment can help you avoid private mortgage insurance (PMI), it’s not required. In fact, many buyers in California qualify with as little as 3% down. FHA loans allow even lower down payments, making homeownership possible for buyers without large cash reserves.
California’s home prices make saving 20% nearly impossible for many buyers, especially in high-cost counties like Los Angeles, Orange, and Santa Clara. Fortunately, lenders now offer flexible options tailored to first-time buyers and moderate-income families. Waiting years to save a larger down payment can mean missing out on equity growth and rising property values. A smaller down payment with the right loan can help you enter the market sooner and build wealth over time.
Myth: You Need Perfect Credit to Get a Mortgage
Fact: Strong Credit Helps, But It’s Not Everything
Another popular belief is that only buyers with a perfect credit score can qualify for a mortgage. While higher scores do lead to better interest rates, it’s not the only factor lenders consider. You don’t need a 750 or higher score to be approved. Many buyers secure mortgages with scores in the mid-600s, especially when using FHA loans or other government-backed programs.
At LBC Mortgage, we look at the full financial picture. Stable income, low debt, and steady employment often carry as much weight as credit history. We’ve helped buyers with less-than-perfect credit secure competitive loan options by choosing the right program and presenting their financials clearly. Don’t let a few missed payments or old debts stop you from applying.
Myth: Waiting for Rates or Prices to Drop Is Always Better
Fact: Timing the Market Rarely Pays Off
It sounds smart to wait until mortgage rates fall or home prices come down — but the truth is, no one can predict when that will happen. In 2026, interest rates have fluctuated, sometimes dipping below 6% for 30-year fixed loans. Still, home values in most California cities continue to rise due to demand and limited inventory.
If you delay buying in hopes of a better deal, you risk missing out on home appreciation. For many buyers, getting into the market now — with a good loan and manageable payment — makes more sense than holding out for a perfect rate that may never come. When rates drop, refinancing is always an option. But if prices keep climbing, waiting could cost you more than you save.
Myth: Your Pre-Approval Rate Is Guaranteed
Fact: Your Rate Isn't Locked Until You Take Action
Many buyers assume the interest rate they receive during pre-approval is locked in for good. But pre-approval is only a starting point. Interest rates change daily, and your final rate is determined when you lock it — typically during the loan process after you’ve made an offer on a home.
A mortgage pre-approval gives you a budget and helps your offer stand out, but it’s not a commitment from the lender to hold a rate. At LBC Mortgage, we guide buyers through the rate-lock process and help them decide the best time to secure a rate based on market trends. We keep you updated so you’re not caught off guard by changes.
Myth: All Lenders Are the Same
Fact: Lender Experience and Loan Options Vary
It’s easy to assume every mortgage lender offers the same programs, terms, and rates. But that couldn’t be further from the truth. The lender you choose can make a significant difference in your experience — and your final costs.
At LBC Mortgage, we specialize in customized loan solutions for California buyers. We offer more than just standard loan products — we help with bank statement loans, self-employed borrowers, and even foreign nationals. Our expertise allows us to offer competitive rates, explain every detail clearly, and navigate complex situations that many large lenders can’t handle.
When you work with us, you get more than a quote — you get a plan. We take time to understand your goals and match you with the best possible loan structure.
Myth: Student Loans or Debt Automatically Disqualify You
Fact: Debt Matters, But Doesn’t Mean You’re Denied
Carrying student loans or credit card debt doesn’t mean you can’t qualify for a mortgage. Lenders focus on your debt-to-income ratio, which compares your monthly debts to your gross income. If your income supports the monthly mortgage alongside your other obligations, you’re likely still eligible for financing.
Many buyers with student loans think they need to pay them off first. But doing so can delay your ability to buy and deplete savings you might need for your down payment or closing costs. With the right strategy, we can help you qualify even with some existing debt — and make sure your mortgage fits your budget.
Myth: The Lowest Rate Always Means the Best Deal
Fact: Look Beyond the Interest Rate
It’s easy to get caught up chasing the lowest interest rate. But the interest rate is only one part of the picture. You also need to look at closing costs, origination fees, discount points, and the annual percentage rate (APR) — which reflects the total cost of borrowing.
A loan with a lower rate but high upfront fees may cost more over time. Our team helps you compare loans based on total cost, not just advertised numbers. That way, you avoid surprises and make a decision that supports your long-term financial goals.
Why LBC Mortgage is the Right Choice for California Buyers
At LBC Mortgage, we help California buyers see past the myths and get the facts. We understand how overwhelming the mortgage process can feel — especially with outdated advice floating around. That’s why we combine accurate information, responsive service, and loan options built specifically for today’s buyers.
We’re not just here to approve your loan. We’re here to make sure it’s the right loan, with the right terms, from the right lender. Whether you’re a first-time buyer, upgrading your home, or refinancing in 2026, we’ll guide you every step of the way — with facts, not fiction.
