Agents: 5 Mortgage Myths That Could Be Killing Your Deals

Helping Clients Win Starts with the Right Information

As a real estate professional, you’re dedicated to guiding your clients through one of the most significant decisions of their lives. However, sometimes the biggest obstacles aren’t the price or the inventory—they’re the misconceptions about mortgage financing that can stall deals before they even get started.

At Northpoint Mortgage, we’ve seen too many great deals fall apart—or never even get started—because of outdated or incorrect information. So, let’s bust some myths and set the record straight. Knowing the truth can help you close more deals, faster.

1. Myth: Borrowers Need 20% Down to Buy a Home

Reality: There are numerous loan programs available that allow buyers to put down as little as 3%, or even 0% in the case of VA or USDA loans.

If your buyers are holding off because they think they need to save for years, they might miss out on today’s opportunities.

Tip: Encourage clients to speak with a local Northpoint Loan Officer early. The right loan program might be more accessible than they think.

2. Myth: Pre-qualification is the same as pre-approval.

Reality: Pre-approval is a much stronger position—and can help your offers stand out.

Pre-qualification is often based on self-reported information and doesn’t involve a full credit review. A pre-approval, on the other hand, is a more thorough process and signals to sellers that your buyer is serious and financing is likely to be approved.

At Northpoint, we go the extra mile with our Underwriter Certificate. This process takes place once a borrower submits their financial documents for review and receives approval for financing. By addressing potential issues early, borrowers can avoid last-minute surprises. In today’s competitive market, receiving the Underwriter Certificate is one of the strongest options available.

Tip: Ask your clients for a Northpoint Underwriter Certificate to strengthen offers and avoid surprises during underwriting.

3. Myth: Student Loans Make Homeownership Impossible

Reality: Many buyers with student debt can qualify for a home loan.

Student loans don’t automatically disqualify a buyer. Lenders look at overall debt-to-income ratios, repayment plans, and other compensating factors. In fact, some loan programs are specifically designed to help first-time homebuyers with student debt.

Tip: Don’t let your clients self-disqualify. Always refer them to a Northpoint Loan Officer can do a full review of their financials.

4. Myth: Self-Employed Borrowers Can’t Qualify

Reality: Self-employed clients can absolutely qualify for a mortgage—but they may need more documentation.

We help self-employed borrowers every day, using bank statements, tax returns, and even profit & loss statements. It just takes planning and the right guidance.

Agent Tip: Refer self-employed clients to a Northpoint Loan Officer who’s experienced with non-traditional income and tax returns.

5. Myth: The Lowest Interest Rate is Always the Best Deal

Reality: It’s easy for buyers to chase the lowest rate, but the lowest rate isn’t always the best mortgage. Rates often come with points, fees, or restrictive terms. A good loan officer will balance rate, cost, and flexibility.

Waiting could cost your clients more in the long run. A smart strategy? Buy the home now and refinance later if rates drop. Plus, your buyers start building equity immediately.

Tip: Focus on total monthly payment and overall loan costs—not just the rate.

Let’s Work Smarter Together

The mortgage landscape can be confusing, but you don’t have to be the expert on everything—we’ve got your back.

At Northpoint Mortgage, we’re not just loan officers—we’re your partners in getting more clients to the closing table. If you ever have questions about loan programs, tricky scenarios, or want a second look at a pre-approval, just reach out.

Let’s bust the myths and keep your deals on track!