Outdated Housing Advice You Can Ignore From Your Parents, According to Real Estate Pros

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Parents do their best to give their children everything they need: food, clothes, and advice. But when it comes to real estate guidance, their recommendations can seem tailor-made to a different time.

That’s not their fault. The housing market has changed dramatically in just a generation. Home prices have jumped 260% since 1997, mortgage rates that were below 4% just a few years ago are now closer to 7%, and bidding wars can break out on starter homes in minutes.

The playbook that worked for your parents doesn’t always apply today, and according to the real estate experts we spoke to, it can even hold you back.

We spoke with real estate agents, mortgage brokers, and other pros to find out which pieces of parental housing advice you can safely ignore—and which timeless lessons are still worth heeding.

The advice you can forget

Our experts were quick to flag parental financing advice as the most dangerous trap for today’s buyers. The fact of the matter is, mortgage rates, lending standards, and credit requirements look nothing like they did when most parents last bought a home, and old rules of thumb can quickly mislead.

‘You need to put 20% down’

Of all the advice that our experts flagged, this was the biggest one. Of the four real estate professionals we spoke to, all but one brought this up.

“Nobody needs 20% down,” says Carlos Scarpero, a mortgage broker. “In many cases, they don’t need anything down. They can even get the seller to pay closing costs and not bring anything to the table.”

While 20% down used to be common advice—and it remains the gold standard—it can end up holding buyers back, our experts say.

“It made sense when homes were much cheaper and wages kept better pace. But in today’s market, at least in major metropolitan areas, waiting until you’ve got 20% down simply because it sounds better can mean being priced out completely,” explains Evan Harlow, an agent at Maui Elite Property.

He points to a client who waited three years to save on the advice of his parents. Over that time period, the price for the kind of home he was looking for jumped almost $80,000, pricing him out.

“Having that bigger down payment didn’t actually help; it cost him options,” says Harlow.

“With rising home prices and stagnant wages, it can be difficult for young adults to save up such a large amount of money,” adds Fred Loguidice, real estate professional and the founder of Sell My House Fast Guys.

“By waiting to save for a 20% down payment, buyers may miss out on favorable interest rates and potential tax deductions,” he says. “In today’s market, it may be more beneficial to buy sooner with a lower down payment and potentially refinance in the future when finances allow.”

So don’t get hung up on that 20% number. While it’s true that it will give you a bigger stake of equity from the start and alleviate the need for private mortgage insurance, it could end up pricing you out of a home entirely—and that’s too big a risk to run.

‘You need perfect credit to buy a house’

Another piece of advice multiple experts flagged: the myth of perfect credit.

Scarpero and Benjamin Schieken, a mortgage professional and founder of Fincast, both highlight this common misconception holding buyers back.

The danger here is twofold. According to Scarpero, too many buyers sit out of the market entirely because they don’t think their credit profile is strong enough to buy.

But “perfect credit is not needed to buy a house,” he says. In fact, there are several options for homebuyers with poor or bad credit. FHA loans, for example, allow credit scores as low as 500, and some lenders will work with buyers who can make a larger down payment.

Schieken highlights the opposite problem: Parents often assume good credit alone guarantees the best deal. In reality, that’s when shopping matters most.

“High-credit borrowers qualify for premium products that lenders compete hardest to deliver,” he says. “Without shopping, you waste your best leverage.”

The takeaway: Perfect credit isn’t required, and even if you have it, it’s no substitute for comparing offers.

‘Stick with the same bank’

Loyalty doesn’t always pay, says Schieken. “Running costs differ by branch and region. I’ve seen borrowers pay thousands more by staying with their bank.”

One client, a bank employee, believed her workplace would automatically give her the best deal. But when she shopped around, competing lenders beat her bank’s offer. She switched and saved 12%.

The lesson: Even if you trust your bank or loan officer, shopping the market is essential. Loyalty may feel safe, but it can be very expensive.

What still rings true

For all the outdated advice parents are offering their children today, there’s still some advice that’s worth listening to. Here’s the guidance our experts point out as timeless:

‘Don’t max out your budget’

One piece of advice experts agree is as relevant as ever is this: Don’t buy at the very top of what you can afford.

Always leave yourself some cushion for the unexpected, says Harlow.

“If there’s one piece of advice I wish every first-time buyer heard, it would be to prioritize their budget and financial stability,” adds Loguidice. “It’s important to work closely with a knowledgeable real estate agent and mortgage lender who can help guide buyers toward the best decision for their individual situation.”

Stretching for a home can leave you vulnerable, but a smart budget and trusted advisers will do more for your long-term security than squeezing into the priciest house you qualify for.

‘Timing isn’t everything’

Parents often urge their kids to “wait for the right time” to buy a home. But in today’s unpredictable market, that can mean waiting forever.

“If there was one piece of advice I could give every first-time buyer, it’s to worry less about the perfect timing and focus more on a perfect fit for your lifestyle and finances today,” says Harlow. “Real estate isn’t about waiting for the stars to align—it’s about making smart moves that set you up for flexibility down the road.”

So you might want to listen to your parents if they caution you against chasing a mythical “perfect moment.” The right home at the right budget matters far more than trying to outsmart the market.

‘Don’t be afraid of a high rate if the payment fits your budget’

One of the most surprising reminders from our experts is that higher interest rates don’t have to be a deal breaker. Parents who bought in the 1980s remember mortgage rates climbing as high as 18%—numbers that would terrify most first-time buyers today. And yet, they still bought homes, built equity, and raised families.

Too often, buyers sit on the sidelines waiting for the Fed to cut rates or the market to “cool down,” only to watch prices continue rising. If the monthly payment fits your budget, our experts argue, you can ride out rate fluctuations.

“[Parents’] advice to focus on what you can actually afford, rather than just chasing the lowest rate, still matters. If the payment works for your life and your budget, you can ride out rate changes and stay financially secure,” says Schieken.

You may even be able to refinance down the road. But if you wait endlessly for a magical number to appear, you risk being priced out entirely.

So if your parents are telling you to focus less on headlines about rates and more on what you can comfortably afford, they may be right. In real estate, affordability isn’t about winning the lowest number; it’s about buying a home that won’t break you when life throws curveballs.