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

If you are considering purchasing your first home in 2026, you may be experiencing a mix of emotions. Excitement, nervousness, frustration, and perhaps a sense of being behind can all be part of the journey. Many first-time buyers in Reno are feeling similarly.

The past few years have been challenging. Home prices have risen sharply, interest rates have increased, and rental costs have remained high. Added burdens such as student loans and rising childcare expenses have made the dream of homeownership feel increasingly distant.

According to the National Association of REALTORS®, first-time buyers represented only about 21 percent of the market last year, the lowest figure ever recorded. The average age of a first-time buyer has now reached 40.

This trend does not mean that people have given up on buying homes; rather, many have simply been forced to wait.

However, waiting can have significant consequences. The NAR estimates that delaying a home purchase by ten years can result in about $150,000 in missed equity on a typical starter home. This figure often surprises people, but the costs can accumulate more quickly than expected.

So as you look to 2026, the key question is not whether you have missed your chance. It is whether this will be a market where you can confidently move forward.

For many buyers, the answer is yes.

No one should suggest that the housing market is suddenly easy. It is not. But it has become more stable.

Interest rates are projected to hover around the 6 percent mark for most of 2026. Inventory is gradually improving, and sellers are increasingly open to negotiations. Price growth has slowed compared to the rapid increases seen in recent 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, time to ask questions, and time to make informed decisions without the pressure of losing a home in mere minutes.

This shift can fundamentally change your home-buying experience.

Many first-time buyers tend to focus on mortgage rates, and this is understandable given their impact on monthly payments and the media coverage surrounding them.

However, concentrating solely on interest rates can lead to unnecessary delays in the buying process.

It is essential to remember that purchasing a home involves multiple factors. The price of the home matters, as do seller credits, closing costs, loan structures, and future refinance options.

In a market like the one expected in 2026, buyers often have more flexibility than they realize. Some sellers may assist with closing costs, while certain builders might offer rate buydowns. Choosing the right loan structure can sometimes place you in a better position than waiting indefinitely for a perfect rate.

Saving for a down payment remains a significant hurdle for many first-time buyers, and this has not changed.

Many people mistakenly believe they need to put down 10 or 20 percent. In reality, numerous first-time buyers can qualify with much less. Some conventional loans require as little as 3 percent down, while FHA loans often necessitate around 3.5 percent. Additionally, VA and USDA loans may allow for zero down if you meet the qualifications.

There are also various assistance programs and grants available, but many potential buyers are unaware of these options because they do not engage with a lender early enough in the process.

One of the most common mistakes first-time buyers make is waiting until they feel “ready” to ask questions. Gaining knowledge often reveals options sooner than expected.

Another trend we are observing is a growing flexibility in mortgage options.

Some first-time buyers are opting for adjustable-rate mortgages, particularly if they plan to stay in their new home for a limited time. Others are leveraging builder incentives to temporarily lower their payments during the initial years.

While these alternatives may not be suitable for everyone and come with their own trade-offs, they can provide the right buyer with an opportunity to enter the housing market sooner without overextending their finances.

The key is to understand these options rather than shy away from them.

This aspect may come as a surprise to some.

Builders are currently motivated to sell, often offering price reductions, closing cost credits, or rate buydowns. In Reno, there is also an increase in the construction of townhomes, providing more entry-level options for buyers.

In some cases, new construction can be more affordable than older resale homes, especially when factoring in incentives.

Prepared buyers tend to identify these opportunities first.

Every market has its unique rewards.

At this moment, preparation is more crucial than speed. Being prepared goes beyond just getting pre-approved; it also involves understanding your financial situation, recognizing your comfort zone, and having a strategy in place before the right home appears on the market.

Successful buyers often start their journey earlier than they expect, not out of haste, but to avoid scrambling later on.

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

At NEO Home Loans, we take a longer-term approach.

With our Mortgage Under Management program, we continue to work with you after your purchase. We monitor interest rates, track equity, and adjust strategies as your circumstances evolve. This ongoing support is particularly valuable for first-time buyers, as the initial years of homeownership can significantly influence your future.

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 offers something that has been lacking for some time: balance, more options, less chaos, and greater room to plan.

You do not need to wait for the perfect moment; you need clarity and a knowledgeable guide to 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 your unique situation.

If homeownership is on your mind this year, the best first step is not to fill out an application.

It is to discuss your plan.

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