Resolve To Own: 5 Steps for First-Time Buyers To Get Mortgage-Ready in 2026
If one of your resolutions for 2026 is to get yourself in position to become a first-time homebuyer, the time to get started is now.
Don’t let the calendar fool you: 12 months to get mortgage-ready may sound like a long time, but buying a home is one of the biggest financial moves you’ll ever make, and everyone involved in the process—from prospective sellers to lenders—wants to know that you can check every box.
There are plenty of evergreen checklists you can consult, from getting pre-approved to making sure your credit history is in good standing. What should you specifically be on the lookout for in 2026 to ensure that this is the year you are ready to buy?
1. Don’t wait for the perfect rate
Over the past few years, many prospective buyers have put their home search on hold waiting for mortgage rates to drop. But this strategy can backfire—especially in an uncertain economy, and in a competitive market where inventory remains tight and prices continue to climb.
The truth is, small rate fluctuations often have less impact on your monthly payment than you might expect. And while you’re waiting for rates to fall, you might be missing out on homes that work for you today, or watching prices rise faster than any rate savings would offset.
“When it comes to interest rates, many buyers get stuck waiting for rates to drop,” says Mosi Gatling, senior vice president of strategic growth at New American Funding. “The reality is that small rate changes don’t always make a big difference in monthly payments, especially when home prices and inventory are changing. Instead of watching headlines, buyers are better served by understanding what payment range works for them and exploring different options that support long-term affordability.”
Rather than timing the market, focus on what you can control: your down payment savings, your credit profile, and most importantly, what monthly payment you can comfortably afford. Remember, you can always refinance if rates drop significantly later—but you can’t go back in time to buy a home at yesterday’s price.
Know what advice actually applies to you
Social media has made real estate advice more accessible than ever, but it’s also created a minefield of generic tips that may not apply to your situation. A strategy that works in Phoenix might be irrelevant in Philadelphia. A loan program available in one state might not exist in another. And advice tailored to investors or retirees often doesn’t translate to first-time buyers.
“First-time buyers should be careful where they get their advice,” Gatling warns. “Social media can be helpful, but real estate rules vary by city and state. One of the biggest risks in 2026 is following advice that doesn’t apply to your location, finances, or loan type. Focusing on guidance that’s specific to where you plan to buy can save time and frustration.”
Before you take action based on something you read online, verify it with local professionals—a lender licensed in your state, a real estate agent (ask me) familiar with your target market, or a housing counselor who understands the programs available in your area.
3. Know your competition—it may not be what you think
When first-time buyers think about competition, they usually picture other couples or families bidding on the same three-bedroom house. But the reality of who you’re competing against in 2026 is more complex than that.
“The biggest surprise will be how much housing demand is being reshaped by co-living and nontraditional household formation,” says Mike Brennan, president of Nationwide Mortgage Bankers. “Demand is not disappearing. It is fragmenting.”
Housing demand is being reshaped by fundamental changes in how people live, says Brennan. According to U.S. Census Bureau data, the share of adults living with a spouse has dropped from about 70% in 1967 to roughly 50%. Meanwhile, people living alone have tripled from 5% to 15%. This shift means fewer people per household, which translates to more housing units needed even as population growth slows.
That fragmentation means you’re not just competing with traditional families anymore. You’re up against roommates buying together, unmarried partners, single earners entering homeownership earlier than previous generations, and smaller households of all configurations—all chasing an underbuilt amount of housing supply.
The takeaway? Focus on being ready to move quickly when you find the right opportunity, because hesitation in a supply-constrained market often means losing out entirely, particularly when your competition may have more flexibility than you.
4. Leverage programs and market rules that favor first-time buyers
First-time buyers often assume they’re at a disadvantage against investors and repeat buyers with more cash and equity. But the reality is that numerous programs and market rules exist specifically to level the playing field.
“There are excellent programs out there, but many lenders don’t bring them up, and many buyers don’t know to ask,” says Jake Vehige, president of Neighbors Bank. “It’s about being educated and finding the right lender.”
Vehige points to several strategies that give first-time buyers a real advantage in 2026.
USDA, FHA, and VA loans allow buyers to purchase with low or even zero down payment, and while they often carry a stigma of making buyers less competitive, they can actually strengthen offers and give younger buyers the flexibility to keep more cash on hand, Vehige says.
Most states and cities offer down payment assistance, yet few buyers actually apply. Vehige advises first-time buyers to start exploring these options in the first quarter of 2026, when many programs replenish their budgets for the year.
Market rules are also working in your favor. Owner-occupant protections block investors from purchasing certain homes during initial listing periods, giving actual buyers a natural edge. Some cities and states are also introducing policies that limit investor ownership, and buyers who know how to identify listings with protections can increase their odds of winning in competitive situations.
The key is working with a lender who actively educates buyers about these options rather than defaulting to conventional loans. The programs exist—you just need to know they’re available and how to use them strategically.
5. Meet with lenders ASAP to know where you stand
Talking to a lender early has always been smart advice for homebuyers. But in 2026, with continued affordability pressures, shifting interest rates, and evolving lending standards, getting pre-educated—not just pre-approved—is more critical than ever.
Meeting with a lender months before you’re ready to buy gives you time to understand what you can truly afford, address any issues in your financial profile, and avoid surprises that could derail your plans when you finally find the right home. Early conversations with lenders also help you avoid common pitfalls that might not be obvious until you’re deep in the approval process.
“Lenders look closely at how income is earned and how money is managed,” says Gatling. “Big changes like switching jobs, changing how you’re paid, starting gig work, or using buy-now-pay-later plans can raise questions if there isn’t a clear track record. You don’t need perfect finances, but you do need consistency and clarity.”
Understanding these requirements early means you can make informed decisions about your career moves, side hustles, and spending habits well before you apply for a mortgage. It also gives you time to build the kind of financial documentation lenders want to see: steady income streams, responsible credit usage, and cash reserves that demonstrate you can handle homeownership’s ongoing costs.
The path to homeownership in 2026 may not be the same as it was in 2025, let alone 1985. The buyers who succeed will be the ones who understand the market they’re entering, know what help is available to them, and prepare early enough to act when the right opportunity appears. Start now—because in a competitive, supply-constrained market, readiness is what separates those who buy from those who keep waiting.
Reach out to me and let’s get started. There are several 1st time home buying programs and this one that I listed, if you qualify with a 580 credit score. (Awesome, No DownPayment Required).
Sandy Herrick – ReeceNichols
913-205-4333
Licensed in Kansas & Missouri
