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

If you are considering purchasing your first home in Bend in 2026, you may be experiencing a mix of emotions. Excitement, nervousness, frustration, and perhaps even a sense of being behind or embarrassed about still renting are common feelings among first-time buyers in our area.

Many first-time buyers share these sentiments today. The past few years have been challenging. Home prices rose significantly, interest rates increased, and rental prices remained high. With the return of student loan payments and rising childcare costs, it may feel like the goalposts keep moving.

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

This trend does not indicate that people have given up on homeownership; rather, many have been forced to wait for the right opportunity.

However, waiting can come with its own consequences. The NAR estimates that delaying a home purchase by ten years could mean missing out on approximately $150,000 in equity on a typical starter home. This figure may surprise you, but it accumulates faster than most anticipate.

The question for 2026 is not whether you have missed your chance. Instead, it is whether this will be a market where you can move forward without feeling overwhelmed.

For many buyers, the answer is a resounding yes.

No one should assume that the housing market is suddenly easy. It is not. However, it is becoming calmer.

Interest rates are expected to remain in the 6 percent range for most of 2026. Inventory is gradually improving, and sellers are becoming more open to negotiations. Price growth has also slowed compared to previous years.

While this may not sound thrilling, it is significant. A calmer market gives first-time buyers something they have not had in a while: time. You will have room to think and space to ask questions without the pressure of losing a property moments after seeing it.

First-time buyers often focus heavily on mortgage rates, and understandably so. Rates impact monthly payments and are frequently discussed in the media.

However, concentrating solely on rates can lead to prolonged indecision. It is essential to remember that purchasing a home involves more than just interest rates.

Price matters. Seller credits are important. Closing costs and loan structure also play a role. Future refinancing options can impact your financial situation.

In a market like Bend's in 2026, buyers may find more flexibility than they realize. Some sellers may offer to cover closing costs, while certain builders might provide rate buydowns. Specific loan options can help lower your initial payments.

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

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

Many buyers mistakenly believe they need to put down 10 or 20 percent. In reality, numerous first-time buyers qualify with much less. Some conventional loans allow down payments as low as 3 percent. FHA loans often require around 3.5 percent. VA and USDA loans can even allow for zero down payment if you meet certain criteria.

Additionally, there are assistance programs and grants available, but many potential buyers are unaware of these options because they do not engage with a lender early enough.

This is a common mistake among first-time buyers. Waiting to feel "ready" before asking questions can hinder your progress. Early education often reveals options you might not have considered.

We are also seeing a trend toward 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 take advantage of builder incentives to temporarily reduce payments in the early years.

These alternatives may not be suitable for everyone, and they come with trade-offs. However, they can help the right buyer secure a home sooner without overextending themselves.

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

This aspect may surprise some.

Builders are motivated in the current market. Many are offering price reductions, closing cost credits, or rate buydowns. Additionally, the construction of townhomes has increased significantly, creating more entry-level options.

In some cases, new construction can actually be more affordable than older resale homes once you factor in these incentives.

Prepared buyers often identify these opportunities first.

Every market has its unique advantages.

At this moment, preparation is more valuable than speed.

Being prepared involves more than just getting pre-approved. It requires understanding your finances, knowing your comfort level, and having a strategy in place before the right home becomes available.

The most successful buyers tend to start their journey earlier than they think necessary. They do not rush but rather seek to avoid scrambling later.

Most lenders focus on getting you to closing, after which the relationship typically ends.

At NEO Home Loans, we take a longer view.

With our Mortgage Under Management program, we continue to work with you after the purchase. We monitor interest rates, track 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 your financial journey.

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

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

However, 2026 presents a balance that has been lacking for some time. There are more options available, reduced chaos, and a better environment for planning.

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

Buying your first home should not feel rushed or daunting.

At NEO Home Loans, our role is to help you understand what is realistic, what is achievable, and what makes sense for your situation.

If homeownership is on your mind 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.