What First-Time Homebuyers Need to Know in 2026

By Michael Fadeeff

Michael Fadeeff is a seasoned real estate professional with over 24 years of experience. Specializing in both buying and selling, he combines his deep local market expertise with a strategic, detail-oriented approach that has earned him a reputation as a trusted advisor and fiduciary.

If you’re a first-time homebuyer in 2026, you might feel unsure about where to begin because the market can feel tricky when rates move, homes sell fast, and inventory stays low. I talk with buyers every day who feel the same way, and the good news is that once you understand the key steps, the entire process becomes much easier to navigate. My goal is to walk you through the basics so you feel clear, confident, and ready to move forward.

Get approved before home shopping. The very first step I encourage every first-time buyer to take is to get pre-approved for a mortgage, because this tells you exactly how much home you can afford and shows sellers that you are a serious buyer.

For 2026, interest rates are expected to stabilize and may even drop further. This could spark increased competition among buyers re-entering the market. Being ahead of the curve is critical, so understanding your buying power is essential. If rates go down, this can significantly affect not just home prices but also your budget.

I’ve worked with many buyers who start touring homes before getting pre-approved, and they often fall in love with properties that end up being outside their budget, which leads to frustration and wasted time. Pre-approval keeps your search focused, gives you a realistic price range, and strengthens your position when you are ready to make an offer.

Don’t overlook the hidden costs. Many first-time buyers focus on the down payment and forget that buying a home comes with extra expenses that can add up faster than expected. Closing costs, repairs, upgrades, taxes, insurance, and even new furniture all play a role in your total budget, so planning for them early helps you stay grounded and avoid surprises.

I’ve seen buyers feel stressed when these costs catch them off guard, and I want you to move through the process with a clear understanding of what to expect from the start.

Know your loan options. You also have several types of loans to choose from in 2026, and each one comes with its own benefits and requirements. FHA loans, VA loans for veterans, and conventional loans with either fixed or adjustable rates are all strong options for first-time buyers, and a lender can help you figure out which one best fits your income and long-term goals. Understanding your choices gives you more control and keeps you from feeling overwhelmed once you are ready to move forward.

Buying your first home is a major milestone, and when you have the right information and the right guidance, the process becomes much easier to manage. If you’re ready to start your home search or want to talk through your options, feel free to call or text me at 925-399-8411 or email me at mike@mike.estate. I can help you with the next steps in your homebuying journey and get you closer to owning a home in 2026.