Of course it's happening inside your head, Harry. Erm, I mean, Raven. Why should that mean that it's not real?
I personally investigate the line between Shamanic "vision quests" and Jungian "active imagination". Both are interesting to look up. By my experience, too, they don't only come up in daydreams. Magic vision can include things that appear to be drawn from your own memories, and sometimes eventually they take on traits of their own.
After a failed meditation of mine where I tried to go out-of-body, it seemed to succeed in other ways because I would see the girl from The Exorcist in my room--or, like, the image of the room that I had in my head, because obviously this was just in my mind right? Well, I thought, it's my imagination so I can imagine her walking away and never to be seen again.
Did. Not. Work.
After a few days of her hanging around, I began to see slight changes in features, and then it became what I identified as the batibat (this happened in The Philippines, and the batibat is a creature from local folklore.)
I still don't know why it appeared like some movie star character in a horror flick first, but I can believe that the things you see could be manifestations of something in the psyche...which doesn't mean that it's not important to consider. Repressing them can be harmful.
Also, the psyche doesn't mean like, "oh, it's just you; it's your problem" I personally also believe in something called the Collective Subconscious, which means that stuff having to do with "the psyche" can also be "psychic".
Feel free to drop me a message if you want to learn more. :-)