Thinking About Buying Your First Home in 2026? Read This First

If you are considering buying your first home in Brentwood in 2026, you may be experiencing a mix of emotions. You might feel excited, nervous, frustrated, or even a bit behind. Perhaps you feel embarrassed about still renting. Many first-time buyers are grappling with these feelings right now.

The last few years have been challenging. Home prices have increased rapidly, interest rates have risen, and rental prices have remained high. Additionally, the resurgence of student loans and rising childcare costs have made it feel as if the goalposts keep shifting.

According to the National Association of REALTORS®, first-time buyers represented only about 21 percent of the market last year, the lowest percentage on record. The average age of a first-time buyer is now 40 years old.

This trend does not imply that people have given up on homeownership; rather, many have been compelled to wait.

The downside of waiting is significant. The NAR estimates that delaying a home purchase by ten years can result in approximately $150,000 in lost equity on a typical starter home. This figure can be surprising, but it accumulates faster than many anticipate.

Therefore, the key question for 2026 is not “Did I miss my chance?” Instead, it is “Is this finally a market where I can move forward without feeling overwhelmed?” For many buyers, the answer is yes.

It is important to acknowledge that the housing market is not suddenly easy. However, it is less chaotic than in previous years.

Interest rates are expected to stabilize in the 6 percent range for most of 2026, and inventory is gradually improving. Sellers are becoming more open to negotiations, and the rapid price growth we have seen in recent years has slowed.

While this may not sound exhilarating, it is significant. A calmer market provides first-time buyers with something they have not experienced in a while: time. Time to think, space to ask questions, and an opportunity to make informed decisions without the pressure of losing a property in minutes.

Many first-time buyers focus primarily on mortgage rates, which is understandable given their impact on monthly payments and their frequent mention in the news. However, concentrating solely on rates can lead buyers to remain on the sidelines longer than necessary.

It is crucial to remember that purchasing a home involves various factors. Home prices, seller credits, closing costs, loan structures, and future refinance options all play a role in your decision.

In the 2026 market, buyers may discover more flexibility than they realize. Some sellers may offer to cover closing costs, and builders might provide rate buydowns. Certain loan options can help reduce initial payments.

A slightly higher rate with the right structure can sometimes position you better than waiting indefinitely for the perfect number.

Saving for a down payment continues to be the most significant hurdle for many first-time buyers. This aspect has not changed.

Many buyers mistakenly believe they need a down payment of 10 or 20 percent. In reality, numerous first-time buyers qualify with much less. Some conventional loans require as little as 3 percent down, while FHA loans often require around 3.5 percent. VA and USDA loans may even allow for zero down for qualified buyers.

Additionally, there are assistance programs and grants available, but many people are unaware of them because they do not consult a lender early enough.

This is a common mistake among first-time buyers: waiting until they feel “ready” to ask questions. Early education can often reveal options sooner than expected.

Another trend emerging is increased flexibility in mortgage options.

Some first-time buyers are opting for adjustable-rate mortgages, knowing they may not stay in their homes long-term. Others are taking advantage of builder incentives to temporarily lower payments during the initial years of homeownership.

These options may not be suitable for everyone and do come with trade-offs, but they are available and can assist the right buyer in entering the market sooner without overextending themselves.

This aspect may surprise some buyers.

Builders are currently motivated to sell, often offering price reductions, closing cost credits, or rate buydowns. The construction of townhomes has also increased significantly, providing more entry-level options.

In many cases, new construction can actually be more affordable than older resale homes once incentives are taken into account.

Prepared buyers tend to identify these opportunities first.

Every market rewards different strategies.

At this moment, being well-prepared is more critical than acting quickly.

Preparation goes beyond just obtaining pre-approval; it involves understanding your financial situation, knowing your comfort zone, and having a plan in place before the right home becomes available.

Successful buyers often begin their journey earlier than they think they need to—not out of urgency, but to avoid scrambling later.

Many lenders focus solely on guiding you to the closing table, after which the relationship often ends.

At NEO Home Loans, we take a longer view.

Through our Mortgage Under Management program, we continue to work with you post-purchase. We track interest rates, monitor equity, and adjust strategies as your life evolves. This approach is particularly beneficial for first-time buyers, as the early years of homeownership significantly influence future financial outcomes.

Your first home is not merely a transaction; it marks the beginning of your financial journey.

There is no one-size-fits-all answer.

However, 2026 presents a unique opportunity characterized by balance, more options, less chaos, and ample room for planning.

You do not need to wait for the perfect moment. What you need is clarity and a guide who can help you think long-term.

Purchasing your first home should not feel rushed or intimidating.

At NEO Home Loans powered by Better, our mission is to assist you in understanding what is realistic, possible, and sensible for your situation.

If homeownership is on your radar this year, the most effective first step is not filling out an application.

It is initiating a conversation about your plan.

When you are ready, we are here to help.