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But while some tips might be helpful, others are spreading harmful myths.
Buying a home is one of the biggest decisions youll make in your life.
And getting the wrong information could mean making some expensive mistakes.
Some of themost popular advice on TikTok sounds believable, but its usually not the whole story.
Before you trust everything you see, its important to separate fact from fiction.
Here are five pieces of home buying advice to be wary of.
But heres the truth: You dont need 20%.
Many lenders offer mortgages with down payments as low as 3 to 5%, especially for first-time buyers.
Saving for a 20% down payment could take you years.
And when home prices keep going up, the goalposts are constantly moving.
It might not be worth it for you to wait to save 20%.
Dont focus on just the down payment.
Think about your overall finances and what makes sense for you.
TikTok creators often push this idea, but its misleading.
Its true that houses are more expensive right now.
But there are also many programs out there to help first-time buyers.
Yes, prices are high, but there are plenty of options out there that dont involve millionaire status.
Think outside the box, like looking in up-and-coming neighborhoods or considering fixer-uppers that can be renovated over time.
Partner with agood real estate agentwho knows how to find deals that fit your budget.
Dont let TikToks gloominess stop you from exploring your options.
Being flexible will get you far.
Starting small can be a stepping stone to building wealth and eventually upgrading to a bigger property.
Refinancing can be helpful in certain situations, but its not always the right choice.
For one, refinancing comes with closing costs that can run thousands of dollars.
Refinancing to get a lower interest rate sounds like a no-brainer, right?
Well, TikTok might oversimplify things, said Hnatkovskyy.
Plus, refinancing comes with costs closing fees, appraisals and credit checks that can eat into your savings.
Instead, calculate your break-even point and long-term costs before pulling the trigger.
Refinancing can be smart, but its not a magic money-saver.
If you cant break even on those costs, refinancing could end up costing you more than you think.
Always do the math before refinancing to see if it makes sense for you.
That might seem logical, but its risky.
No one can predict exactly when or if rates will fall.
In the meantime, home prices could keep rising.
That means that even if interest rates do eventually drop, homes will be more expensive than before.
Many TikTokers are out here saying, Just wait, rates will drop soon!
But predicting the market is like predicting the weather its hit or miss, said Hnatkovskyy.
Instead of trying to time the market, focus on getting a mortgage you could afford today.
it’s possible for you to always refinance if rates do drop in the future.
Even if interest rates are high right now, buying a home could still be a smart move.
Mortgage rates can be refinanced later, but the price you paid for the home is locked in.
And if you wait for lower rates, it might mean losing out.
Instead, make a run at find a home that fits your needs and your budget today.
A mortgage broker compares loan options from multiple lenders and negotiates on your behalf.
Theyre also there to help you through a complex and overwhelming process.
If youre unsure, compare a brokers offer with one directly from the bank to see where you stand.
Since their success depends on your satisfaction, mortgage brokers are incentivized to find you the best deal.
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