Real Answers for Real Buyers — Not Just Social Media Clickbait

TikTok might be great for recipes, dance trends, and quick tips—but when it comes to buying a home, you need more than 60 seconds and a catchy hook. Some of the most popular mortgage advice videos leave out important details that could cost you thousands. Here’s the real story behind the most common TikTok mortgage myths—and what you should know before making one of the biggest financial moves of your life.

Myth #1: “You’re preapproved and ready to go!”

The Truth:

A mortgage pre-approval is only the first step in the home loan process. It’s based on preliminary information, and final approval happens after your lender fully reviews your income, assets, credit, and the property.

Pro Tip: 

Keep your finances steady—don’t open new accounts, change jobs, or make large deposits without checking with your lender first.

Myth #2: “Go with the lender who’s quoting you the lowest rate.”

The Truth:

That low advertised mortgage rate might come with hidden costs. Some lenders require you to pay discount points at closing to secure that rate—something they don’t always disclose upfront.

Pro Tip:

Compare the total cost of the loan, not just the interest rate. Sometimes a slightly higher rate can save you thousands in closing costs.

Myth #3: “Don’t worry about student loans!”

The Truth:

While you shouldn’t panic about student debt, you can’t ignore it either. Lenders must include student loans in your debt-to-income ratio—even if they’re in deferment.

Pro Tip: 

A knowledgeable loan officer can help you understand how your loans affect your mortgage eligibility and guide you to the right loan program.

Myth #4: “Use a credit card to pay for your closing costs!”

The Truth:

Most loan programs don’t allow this. Closing costs typically must come from verified funds such as a bank account, gift, or approved asset source.

Pro Tip: 

Before you move money around, ask your lender which funding sources are acceptable for your mortgage type.

Myth #5: “A 40-year mortgage will make the payments more affordable!”

The Truth:

While a 40-year mortgage might sound appealing, it’s not a mainstream option for most homebuyers. It’s usually limited to loan modifications or niche non-QM products, often with higher rates.

Pro Tip: 

Most buyers are better served with traditional terms like a 30-year fixed or 15-year fixed loan.

Myth #6: “You don’t need documents to get a loan.”

The Truth:

“No-doc” loans aren’t available for standard mortgages. Unless you qualify for certain non-QM programs, you’ll need to provide proof of income, assets, and employment.

Pro Tip: 

Self-employed or gig worker? You still have mortgage options—just be ready to verify your ability to repay.

Bottom Line: 

TikTok Isn’t a Loan Officer Social media can be a starting point for mortgage questions, but it can’t replace expert, personalized advice. A licensed mortgage professional can walk you through the process, help you avoid costly mistakes, and ensure you get the loan that truly fits your needs. When it comes to the biggest purchase of your life, the right guidance can save you thousands—while the wrong advice could cost even more.

Have questions about getting a mortgage? Talk with a TMF loan officer!