Common Home Buying Myths That Can Cost You Money
Myth #1: You Need 20% Down to Buy in Seattle or Bellevue
One of the biggest barriers we hear from clients is the idea that you must save a 20% down payment before you can buy a home. This is one of the most persistent home-buying myths and it simply isn’t true.
The Truth About Down Payments
In 2026, many buyers can qualify for home loans with as little as 3% to 5% down, even in higher-priced markets like Seattle and Bellevue. Loan programs such as:
Conventional loans with low down payment options
FHA loans with down payments starting around 3.5%
Local and state down payment assistance programs
can make homeownership accessible well before you reach that 20% mark. For many first-time buyers in Seattle, these programs are a real path into the market. While a 20% down payment can help you avoid private mortgage insurance (PMI), it is not a requirement to buy, and saving for it could delay your purchase while home prices continue to rise.
Myth #2: It’s Better to Wait for Interest Rates to Drop
Rates are always changing, and in a market like Seattle-Tacoma-Bellevue, buyers often ask, “Should we just wait for mortgage rates to go down?”
Why Waiting Isn’t Always Better
Rates might come down, but they also might not. And while you’re waiting, home prices can continue to rise. In the Seattle metro area, median home values are still significantly higher than the national average, and housing demand in Bellevue and other Eastside cities remains competitive.
Trying to perfectly time interest rates can lead to missed opportunities. That’s why many buyers choose to move forward when they find the right property and then refinance their mortgage later if rates improve. After all:
You can refinance a mortgage rate, but you can’t refinance a property you missed out on.
This approach lets you lock in today’s market opportunities while still managing your long-term financing strategy.
Myth #3: You Have to Stay in Your Home for 5+ Years
Another common belief is that buying only makes sense if you plan to stay in your home for a long time. Many people assume that selling earlier means losing money.
It Depends on Your Plan
In the Seattle and Eastside housing market, how long you stay in a home depends on your personal goals and local market conditions. In many growing neighborhoods, particularly in Bellevue, Redmond, Kirkland, and Mercer Island, home values have risen steadily, and homeowners build equity faster than expected.
In some cases, buyers are able to:
Sell and “move up” to a larger home
Rent out the property as an investment
Use home equity for future purchases
So rather than thinking in terms of a fixed rule, the smart strategy is to consider your timeline, career plans, and lifestyle needs.
Why These Myths Persist in the Seattle Area
Many home-buying myths started in a different housing market—one with lower prices, lower interest rates, and more inventory. But the reality in today’s Seattle, Bellevue, and Eastside real estate market is different.
While mortgage rates have been higher than the pandemic lows, inventory has slowly built up and buyer demand is shifting. A more balanced market—with homes sometimes selling below list and with more negotiation power for buyers—means there are real opportunities if you know where to look.
The biggest mistake buyers make is following blanket advice that doesn’t reflect current trends or the local market conditions.
Buying a Home in Seattle & the Eastside Is Not One-Size-Fits-All
There’s no universal rule for:
The “right” down payment
The “perfect” interest rate
How long you must stay in a home
Instead, the best decisions come from understanding what applies to your finances, goals, and local real estate conditions.
Whether you’re buying in Capitol Hill, West Bellevue, Kirkland, or anywhere across the Eastside, the key is a strategic approach backed by up-to-date market insights.
Get Personalized Guidance for Your Home Buying Journey
If you’re thinking about buying a home in Seattle, Bellevue, or the Eastside, and feel overwhelmed by conflicting advice online, you aren’t alone. The right choice depends on your situation, and that’s where expert guidance makes all the difference.
We’re happy to walk you through what really applies to your budget, neighborhood preferences, and goals in today’s market.
Let’s clear up the noise and help you make confident, informed decisions about buying your next home in the Greater Seattle area.