The real estate market can be complicated. Lending companies, brokers, agents are all working hard to stay on top of the competition. But they may not always be after the best interest of their consumers. For instance, agents get their income from commissions on deals they successfully close.

If you are a home seller or a home buyer, hiring an agent to work for you may help you get better deals.

However, it is your duty to protect yourself against unfair treatment. Knowing the basic things about the home buying or home selling business will shield you from getting scammed or swindled.

Let’s talk about some false notions that many people believe but are just plain myths.

You may have heard about them and believe them to be true. Check out the following myths in the world of real estate, and be properly informed about the truth.

MYTH #1 If you have negative items (such as a record of foreclosure or bankruptcy), you will never qualify for a mortgage again.

Definitely just a myth. Even if you have a record of foreclosure or bankruptcy in the past, you can still get a mortgage. If the foreclosure or bankruptcy has been filed recently, you may have to wait some time to rebuild your credit. Two years should be enough to make improvements on your credit rating and qualify you for a mortgage. Just be sure that in those two years, you have not missed or delayed any payment in any of your creditors.

MYTH #2 If you want to purchase a house, you will need a 25% down payment.

If you have a poor credit, you would need at least 5%-10% down payment ready to buy a house. Although a 25% down payment can lower your loan interest, it is not really necessary even if you have a poor credit history.

MYTH #3 Hiring more agents will help you find a house more quickly.

On the contrary, if you hire several agents, they may not give as much effort in finding you a good deal. Just make sure that you hire one legitimate and reputable agent who will represent you.

MYTH #4 If you’re going to sell your property, you should find a new house first.

Not true. Finding a buyer for your property will give you an edge on your search for your new home.

MYTH #5 The best real estate agent is the one who handles the most number of listings.

An agent who holds several listings is not a guarantee that you’ll get the best service. In some cases, these agents are too busy handling too many listings that they don’t have time for other clients. Try to find one legitimate agent who handles and maintains fewer clients.