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

If you are thinking about purchasing your first home in Matthews 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 share these feelings right now.

The past few years have been challenging. Home prices surged, interest rates increased, rents continued to rise, and student loans returned. The financial landscape has felt like it was constantly shifting.

According to the National Association of REALTORS®, first-time buyers comprised only about 21 percent of the market last year, which is the lowest share ever recorded. The average age of a first-time buyer is now 40.

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

However, waiting can have consequences. The NAR estimates that delaying a home purchase by ten years can lead to approximately $150,000 in missed equity on a typical starter home. This figure can be surprising, but the costs accumulate more quickly than many expect.

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

No one should suggest that the housing market is suddenly easy. It is not. However, it is calmer than it has been in recent years.

Interest rates are expected to hover around the 6 percent mark for most of 2026. Inventory is gradually improving, sellers are becoming more open to negotiations, and price growth has slowed compared to previous years.

While this may not sound thrilling, it is significant. A calmer market provides first-time buyers with something they have not had in a while: time. Time to think through decisions, space to ask questions without the pressure of losing a property within minutes, and the opportunity to feel more in control of the buying process.

Many first-time buyers fixate on mortgage rates, and it is easy to understand why. Rates directly impact monthly payments and dominate headlines.

However, focusing solely on rates can lead to prolonged indecision. It is essential to remember that purchasing a home involves various factors.

Price is crucial. Seller credits can make a difference. Closing costs are significant, as is the structure of your loan and future refinance options.

In a market like 2026, buyers may have more flexibility than they realize. Some sellers may offer to cover closing costs, while certain builders might provide rate buydowns. Various loan options can lower initial payments.

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

Saving for a down payment remains a significant hurdle for most first-time buyers. This challenge has not changed.

Many buyers believe they need to put down 10 or 20 percent. In reality, plenty of first-time buyers qualify with much less. Some conventional loans allow as little as 3 percent down, while FHA loans often require around 3.5 percent. VA and USDA loans can offer zero down payment options for those who qualify.

Additionally, there are assistance programs and grants available, but many potential buyers are unaware of them because they do not reach out to lenders early enough.

This is a common mistake among first-time buyers: waiting until they feel “ready” to ask questions. Education can often unlock options sooner than anticipated.

We are also seeing a trend toward greater flexibility in mortgage options.

Some first-time buyers are opting for adjustable-rate mortgages, understanding they may not stay in their homes for the long term. Others are utilizing builder incentives to temporarily reduce payments during the initial years.

While these options are not suitable for everyone and come with trade-offs, they can help the right buyer enter the housing market sooner without overextending themselves.

The key is to understand these options rather than fear them.

This aspect may come as a surprise to many.

Builders are currently motivated and often offer price reductions, closing cost credits, or rate buydowns. In Matthews, there is also a notable increase in the construction of townhomes, creating more entry-level options for buyers.

In some instances, new construction can even be more affordable than older resale homes once incentives are factored in.

Buyers who are prepared tend to identify these opportunities first.

Every market has its unique characteristics. At this moment, preparation is more important than speed.

Being prepared goes beyond just getting pre-approved. It involves understanding your financial situation, knowing your comfort zone, and having a plan before the right home becomes available.

The buyers who find success tend to start their journey earlier than they expect, not out of haste, but to avoid scrambling later.

Most lenders focus on helping you reach the closing table, and the relationship often ends there.

At NEO Home Loans powered by Better, we take a long-term view.

With our Mortgage Under Management approach, we continue to work with you after your purchase. We monitor interest rates, track equity, and adjust strategies as your life evolves. This support is especially valuable for first-time buyers, as the early years of homeownership set the stage for everything that follows.

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

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

However, 2026 presents an opportunity that has been lacking for some time: balance, more options, and reduced chaos. There is more room to plan effectively.

You do not need perfect timing. What you need is clarity and guidance from someone who can help you think long-term.

Buying your first home should not feel rushed or overwhelming.

At NEO Home Loans powered by Better, our mission is to help you understand what is realistic, what is possible, and what makes sense for you.

If homeownership is on your horizon this year, the best first step is not filling out an application. It is having a conversation about your plan.

When you are ready, we are here to assist you.