Real Estate Myths: Busted!

For those of you following along, you now know I’ve moved sixteen times in my life, discovered I might actually have a green thumb, and today I’m sharing something I never thought I’d be able to say: I bought a house — even when I truly believed I never could.

My Rental Reality

The last place I rented was a three-unit multi-family. I lived in the upstairs unit, about 1,200 square feet with three bedrooms, one and a half baths, and a separate laundry room. For my cats and me, it was pretty perfect. I was paying $1,200 a month. (Good luck finding that pricepoint now!)

I was making enough to pay rent, utilities, car payment, groceries, plus the occasional fun thing when I could swing it. But savings? Nonexistent. If life threw me a curveball, my credit cards caught it. My credit score floated between the 630s and 670s depending on whether I’d paid things down or maxed them out again. Every tax refund or bonus vanished into paying off debt. The idea of an emergency fund, let alone a down payment, felt like a punchline.

Myth 1: You Need 20% Down to Buy a House

In January 2020, I was considering moving to a smaller apartment to maybe save a little extra each month. When I told my landlord I’d be looking, he hit me with a question so ridiculous I laughed right in his face.

"Would you want to buy this property?"

I mean, I had literally just told him I could barely afford the rent. Buy it? Sure, and I’ll pick up a private island on the way.

But he was serious. He explained that with my income, plus the rent from the other two tenants, I’d probably qualify for a mortgage. He believed I could live rent free with the tenants paying the mortgage. He even offered to connect me with his lender. They were looking for $300,000 for the place. I said fine, I’d talk to the lender, fully expecting them to politely tell me I was out of my mind.

Spoiler: they didn’t. Not only did I qualify, but they told me I’d only need a 3.5% down payment for the type of loan I was eligible for. Instead of needing $60,000, I needed about $10,500. Between my tax refund and a gift from my parents, it was actually possible. Who knew?

The Multi-Family Building

When the Universe Throws You a Curveball

I got under contract, inspections happened, deposits were made, underwriting was rolling along. We were so close to closing. Then COVID arrived like a wrecking ball. Overnight, lenders changed credit requirements and just like that I didn’t qualify anymore.

My landlord sold the property to someone else, and the new owner hiked the rent to $1,600 a month, a number I simply couldn’t afford. I tried to find a new rental but competition was brutal, prices were rising, and I ended up moving back in with my parents.

It felt like a failure at the time. But moving home gave me the chance to regroup, and this time I knew what to do.

Myth 2: All Mortgages (and Lenders) Are the Same

By February 2021, I was ready to try again. I’d raised my credit score, saved a little more, and decided to shoot for a single-family home instead of a multi-family. Before anything else, I wanted to figure out what I could realistically afford. I did my homework on mortgage types, rates, down payment assistance programs, the works.

I talked to online lenders, my own bank, credit unions, you name it. Some lenders told me not a chance. Some pre-approved me for less than I’d need. Others pre-approved me for more than I could realistically handle. The sweet spot turned out to be a local mortgage broker who had access to more options and wasn’t rigid about the boxes I had to check.

Best part? The house I eventually found was in a CHFA-qualified area so I could use down payment assistance. Zero dollars down. Now that was my kind of math.

Myth 3: A Realtor Just Finds You a House

The first time around, my landlord and I didn’t use agents so I had no clue what a realtor actually did besides unlock doors and hand over keys. I assumed you had to be buying some fancy property for an agent to bother with you.

Wrong again. I reached out to a friend who had gotten her license. She told me she’d be thrilled to help and there was no price tag minimum to work with her. I signed an agreement and off we went.

I didn’t really know what I wanted. We cast a wide net as long as it was within 30 minutes of work. With every showing, we got closer. One day we stepped into a charming 1890 Victorian on a quiet street. Three bedrooms, one bath, about 1,400 square feet. I knew immediately it was the one. My agent saw my face and knew too.

The house on Inspection Day

Homes were flying off the market. My FHA offer was less competitive than others, especially since I needed seller concessions for closing costs. My agent was honest: it might not happen. But that night, she called. Offer accepted.

And that’s where the real work began. She helped me line up inspections, coordinated the appraisal, and handled a curveball when the seller’s timeline triggered an extra appraisal on their dime. I didn’t even know it was happening. She and the seller’s agent dealt with the mess so the deal stayed intact. Without her, I probably would have panicked myself out of the whole thing.

Myth 4: You Have to Close on Closing Day

Fun fact. I didn’t close on my scheduled closing day.

At my final walkthrough, I realized the seller hadn’t properly finished agreed-upon repairs. The asbestos insulation in the basement wasn’t sealed correctly and he’d barely trimmed the tree branches hanging over the roof. I refused to close. I wasn’t going to sign up for extra headaches I couldn’t afford to fix.

My agent was crucial. The seller and his agent threatened litigation, saying I was breaching the contract by refusing to close. I disagreed. If you don’t do what you said you’d do, we have a problem. There were rapid-fire emails between our attorneys. My agent and her broker got creative and negotiated that the seller would give me funds at closing to finish the work myself. I agreed. So did he. We rescheduled closing. If I’d been doing this on my own, there’s a decent chance I’d be telling you about the lawsuit instead of my first house.

The house on my real closing day - look at that shrub eating my porch!

What I Learned

Buying my first home was messy, unpredictable, and hands-down one of the best things I’ve ever done for myself. I went from convinced I’d rent forever, to almost buying, to losing it all, to trying again and finally closing on a place that felt like mine.

If you think you can’t buy because you don’t have 20 percent down or your credit isn’t perfect or you just don’t know where to start, I get it. I was you. The myths make it feel impossible. But here’s the truth: there are options. There are people to guide you. And sometimes you need to stand up for what’s right, even when it feels uncomfortable.

When you’re ready to figure out what’s actually possible for you, I’m here. And I promise to keep it real every step of the way.

Me, in my house, on Closing Day! May 18, 2021