8 First-Time Buyer Myths

With inventory starting to open up and the summer sales season winding down, first-time buyers in Napa Valley are seeing more opportunity than they’ve had in years. More choices on the market, motivated sellers, and the potential for interest-rate relief create a window of optimism for buyers ready to make their move.

Here are eight common myths that often hold back first-time buyers—and the facts that set the record straight.

Myth #1: You Need 20% Down to Buy

Reality: Most first-time buyers put down 6–9%, not 20%. FHA loans allow as little as 3.5% down, and VA loans for veterans require no down payment. According to NAR, “20% down” is still the biggest misconception keeping new buyers out of the market.

Myth #2: Pre-Approval Equals a Guarantee

Reality: Pre-approval is a starting point, not a promise. Final approval depends on the current rate and appraisal when you’re under contract. You can ask your lender about locking your rate—but that lock is usually temporary.

​​​​​​​Myth #3: Prices Will Drop if You Wait

Reality: Waiting for the “bottom” is a gamble. Over the last five years, the average price of existing homes has continued to climb. In Napa, desirable homes in good condition often sell quickly—even in shifting markets.

Myth #4: Find the Home First, Loan Later

Reality: Sellers take buyers with financing seriously. Having pre-approval in hand gives you a clear budget and allows you to move quickly when the right home hits the market.

Myth #5: You’re Stuck with the Lender That Pre-Approved You

Reality: You can shop around for better terms, even after pre-approval. Just don’t change lenders once you’re under contract—that can cause delays and risk your offer.

Myth #6: Fixer-Uppers Are Always Bargains

Reality: In Napa, older homes or fixers often come with high renovation costs. Unless you’re experienced or working with a contractor, a “deal” can turn into a money pit.

Myth #7: Student Loans Block You from Buying

Reality: Lenders look at your overall debt-to-income ratio. Paying student loans on time can actually help your credit score. As long as debts fit into your budget, you can still qualify.

Myth #8: Fall Isn’t a Good Time to Buy

Reality: There’s no bad season in Napa. Fall often brings motivated sellers and less competition from buyers compared to spring. Pair that with Napa Valley’s lifestyle—vineyards turning gold, cooler evenings—and you’ve got an ideal time to settle in.

The path to homeownership in Napa is more attainable than many realize. With more listings available, seller flexibility, and loan programs built for first-time buyers, now is the time to separate fact from fiction.

If you’re curious about your options or want to learn about down-payment assistance and loan programs available in Napa County, connect with your Coldwell Banker Brokers of the Valley agent.