6 Home-Buying Myths in Memphis

Written by:

Rudi Davis

Date:

08 Jan 2026

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“Most people still believe you need 20% down to purchase a home,” says Ricki Fitzpatrick, a realtor with Keller Williams Realty in Memphis. “I’ve had clients come with just their earnest money deposit and get a check back at closing.”

Despite persistent misconceptions, the home-buying process in Memphis is more accessible than most realize. These myths keep potential buyers on the sidelines, unnecessarily delaying homeownership. Here are six of the most common myths—and the facts that can help you move forward.

1. You Need 20% Down to Buy a Home

Fact: Most Memphis buyers put down far less than 20%. Mortgages requiring as little as 3% or 5% down are widely available, and first-time buyers can access state and local assistance programs. Some buyers even qualify for zero-down loans through USDA or VA programs.

What to do:
– Ask your lender about 3% and 5% down payment options.
– Consider the cost of private mortgage insurance (PMI), and compare your potential monthly payments to current rents.

2. You Should Wait for Prices to Drop Before Buying

Fact: Memphis home prices rarely experience steep drops. Instead, they may dip slightly before climbing again. “It’s like a moving train,” Fitzpatrick says. “If you don’t hop on now, you’ll wish you did earlier.” Even a 2% to 3% price dip can be offset by rising mortgage rates, eliminating any real savings.

What to do:
– Focus on what you can afford now, rather than waiting for unpredictable market shifts.
– Note that buyers who waited in previous years, like 2018 or 2020, now regret missing out on lower prices.

3. You Need Perfect Credit to Qualify

Fact: Buyers with less-than-perfect credit are purchasing homes in Memphis every day. Lenders consider your debt-to-income ratio and payment history, along with your credit score. “You don’t need perfect credit—just stable income and a realistic budget,” Fitzpatrick says.

What to do:
– Check your credit score using a free service before applying.
– Speak with a lender to find out which mortgage programs match your current credit profile.

4. Student Loans Disqualify You from Buying

Fact: Lenders focus on your monthly debt payments, not your total student loan balance. Fitzpatrick has worked with buyers carrying significant student loan debt who still qualified for mortgages. The key is whether your total monthly obligations fit within your income.

What to do:
– Add up your total monthly debts, including student loans, and compare them to your income.
– Ask your lender how your student loans will affect your pre-approval amount.

5. Cash Buyers Always Win

Fact: In Memphis, cash offers often come in below offers from buyers using financing. “Cash buyers come in really low here,” Fitzpatrick says. Sellers frequently accept higher offers from financed buyers, even if it means waiting a few extra weeks to close.

What to do:
– Don’t assume you’ll lose to cash buyers—focus on making your strongest offer.
– Get pre-approved to demonstrate to sellers that you’re a serious and qualified buyer.

6. Buying Is Always Better Than Renting

Fact: Buying is only the right move if you’re prepared to stay put and maintain a property. “A lot of people are used to renting, so they have that leave-in-a-year-or-two mindset,” Fitzpatrick explains. Homeownership is an investment that requires a longer-term commitment.

What to do:
– Plan to stay in your home for at least three to five years to build equity and offset transaction costs.
– Budget for maintenance, property taxes, and insurance, in addition to your mortgage payment.

What Actually Matters When Buying in Memphis

Beyond these myths, Fitzpatrick emphasizes three priorities for buyers:

Know Your Monthly Budget

Don’t fixate solely on the home’s purchase price. Factor in all monthly expenses, including homeowners association (HOA) fees, property taxes, insurance, and maintenance. This gives you a realistic picture of what you can afford and prevents surprises after you move in.

Get Pre-Approved Early

Getting pre-approved before you shop for homes clarifies your actual price range and strengthens your offer against competing buyers. Pre-approval can also speed up your transaction, making you more attractive to sellers.

Think Long-Term

“Once people see it’s more than just buy right now—that they’re investing in a home and building equity—they’re more inclined to make the move,” Fitzpatrick says. Look for properties you can grow into, not just those that appeal at first glance. Consider how your needs may change over the next several years.

The Bottom Line

Home-buying myths can delay your move into homeownership and cost you opportunities. Memphis offers options for buyers at nearly every income level, from starter homes around $185,000 to luxury properties. The essentials are clear: understand your budget, get advice from a local lender, and act when you find a home that fits your needs. “You’ll be surprised at how simple it is to purchase a home,” Fitzpatrick says.

This article provides insights from a Memphis real estate professional and is not legal or financial advice. Always consult qualified experts about your specific situation.