Each week, "Smart Moves," by Ellen James Martin, provides the practical real estate and housing information consumers need - and presents it in a straightforward, down-to-earth manner that is easy to understand. With its lively, well-written prose, "Smart Moves" proves useful to anyone who buys, sells, owns or rents a home.

FIVE MYTHS THAT KEEP RENTERS FROM BUYING A HOME

Irwin, the author of real estate books, tried to counter their arguments one by one. He went home feeling that his efforts to persuade had fallen flat.

Then the other day the couple called. Excitedly, they said they had just moved from their rented townhouse to a detached, four-bedroom home. They credited Irwin with shattering their illusions about what it takes to buy a residence. "My friends were thrilled that their 'impossible dream' had come true," he recalls.

Common fallacies keep too many renters from making the leap to homeownership. "After people have rented for a while, they develop a mindset. Inertia sets in. They're uncomfortable with change -- like some older people using a computer for the first time," says Sandra Sanders, who owns six Re/Max Realty offices and co-owns a mortgage company with Chase Manhattan Corp.

Several common myths keep renters from progressing into homeownership. Here are five:

Myth 1: Mortgage lenders are there to say "no."

"People are intimidated by lenders. Tradition has it that you go hat in hand, begging for money. That's totally erroneous today," Irwin says.

The truth is that loan representatives are compensated, much as salespeople are, on the number of deals that go through. They have strong incentives to find a way to fit you into a mortgage even if you have blemished credit or an atypical employment history. "You can deal with a lender as an equal because it's a business proposition both ways. You're there to get a mortgage loan and the lender is there to make a profit," Irwin says.

Myth 2: You need a treasure chest of cash to buy a property.

Sanders, who has sold homes since 1973, says lenders become more lenient on down-payment requirements with each passing year. "It shocks me," Sanders says, "but people can now buy with 5 percent or less down. Under the right circumstances, they can even buy with no money down."

With the American economy still thriving, "banks are feeling good about themselves," Sanders says. "They're lenient on down payments because they assume homes will appreciate and they won't have a problem if they have to foreclose."

Myth 3: You can afford no more in a house payment than for rent.

After they've applied for a home loan, many prospective home buyers realize they can afford 20 percent to 30 percent more than they expected. What accounts for the disparity? Often renters fail to take into account that interest on their mortgage is tax deductible, effectively reducing their monthly payment.

Lenders routinely profile mortgage applicants relative to their payment capacity. "The lender knows you better financially than you know yourself," Irwin says.

Myth 4: If one lender turns you down, they all will.

Sanders has a grown son who makes a healthy income as a self-employed real estate agent and investor. Yet not long ago, an unseasoned mortgage lender declined his application, solely on the basis that he was self-employed. Undaunted, he applied to a second lender and was immediately approved.

"If you're turned down, don't assume it's all over. Instead, find some smarter people to help you out," Sanders says. Very few credit blemishes block you from buying a house. "Even those who have gone through a bankruptcy or a foreclosure can get a mortgage within two to three years if they have a good explanation and have re-established good credit," observes Irwin.

Myth 5: Renting always gives you more flexibility than buying.

Granted, the typical lease runs one year. After that, you can easily pick up and move to a faraway state without the complications of selling or renting a home. But there are other complexities associated with renting.

One is payment instability. If you buy a home with a classic fixed-rate mortgage, your principal and interest payments should remain constant. Usually only your lesser charges -- such as property taxes, insurance and condo or homeowners' association fees -- are subject to upward adjustments. But renters are often vulnerable to unpredictable rent increases when a lease comes up for renewal. And if they live in a community where rental units are in short supply, those hikes could be substantial.

Moreover, a homeowner could well have more stability than a renter. "With a house, you can presumably live there as long as you want. You don't have to worry about getting kicked out as long as you make the payments," Irwin says.

On the other hand, "the freedom associated with renting is somewhat illusory," he stresses. A renter could have to move on relatively short notice should his or her landlord decide to sell the property.