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

If you are considering purchasing your first home in Dixon in 2026, you might be feeling a mix of emotions. You may feel excited, nervous, and perhaps even frustrated or embarrassed about still renting. These feelings are common among first-time buyers today.

The past few years have been challenging. Home prices in Dixon have increased significantly, interest rates have risen, and rental costs have not shown any signs of slowing down. The return of student loan payments and the rising costs of childcare have added to the pressure. It often feels 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 share recorded. The average age of a first-time buyer has now reached 40.

This does not mean that people have abandoned their dreams of homeownership. Many have simply been forced to wait.

However, waiting can come with its own set of challenges. The NAR estimates that delaying a home purchase by ten years could result in losing approximately $150,000 in potential equity on a typical starter home. This figure can be surprising, but it adds up more quickly than most people realize.

The question for prospective buyers in 2026 is not whether they missed their chance, but rather if the current market allows them to move forward without feeling overwhelmed.

It is essential to recognize that the housing market is not suddenly easy. However, it is less chaotic than in previous years.

Interest rates are expected to stabilize in the 6 percent range throughout most of 2026. Inventory is gradually improving, and sellers are more willing to negotiate. Price growth has also slowed compared to the rapid increases seen in recent years.

While this may not sound thrilling, it is significant. A more stable market offers first-time buyers something they have not experienced in a while: time to think, the space to ask questions, and the opportunity to make informed decisions without the fear of losing a property within minutes.

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

However, concentrating solely on rates can often lead to unnecessary delays in making a decision. It is crucial to remember that purchasing a home involves various factors.

Home price, seller credits, closing costs, loan structure, and future refinancing options all play vital roles in the overall decision. In the 2026 market, buyers may find more flexibility than they realize. Some sellers might be willing to assist with closing costs, and builders may offer incentives such as rate buydowns. Certain loan options can also help reduce initial payments.

A slightly higher rate paired with the right loan structure may place you in a better position than waiting indefinitely for an ideal rate.

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

Many buyers mistakenly believe they need to save 10 or 20 percent of the home's purchase price. In reality, numerous first-time buyers qualify with much less. Some conventional loans permit as little as 3 percent down, while FHA loans often require around 3.5 percent. VA and USDA loans can even allow for zero down payment if you qualify.

There are also various assistance programs and grants available, but many potential buyers miss out on these opportunities because they do not consult a lender early in the process.

This is a common mistake among first-time buyers—waiting until they feel "ready" before seeking advice. Early education can often reveal options sooner than anticipated.

Another trend we are observing is increased flexibility in mortgage options.

Some first-time buyers in Dixon are opting for adjustable-rate mortgages, understanding that they may not stay in their homes for an extended period. Others are taking advantage of builder incentives to temporarily lower payments during the initial years of homeownership.

While these options may not suit everyone and come with trade-offs, they do exist. They can help the right buyer enter the market sooner without overextending their budget.

This may come as a surprise, but builders are currently quite motivated. Many are offering price reductions, closing cost credits, or rate buydowns. Additionally, townhomes are being constructed at higher rates than in the past, providing more entry-level options for buyers.

In certain situations, new construction can even be more affordable than older resale homes when incentives are factored in. Prepared buyers tend to identify these opportunities first.

Every market has its unique characteristics, and at this time, preparation is more critical than speed.

Being prepared means more than just obtaining pre-approval. It involves understanding your financial situation, knowing your comfort zone, and having a strategy in place before the right home becomes available.

Successful buyers often start their journey earlier than they anticipate. They do not rush; instead, they aim to avoid scrambling later.

Many lenders focus on helping you close the deal, but after that, the relationship typically ends.

At NEO, we take a long-term approach. With our Mortgage Under Management program, we continue to work with you after your purchase. We monitor interest rates, track your equity, and adjust strategies as your life evolves. This ongoing support is invaluable for first-time buyers, as the early years of homeownership significantly influence future financial outcomes.

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

There is no one-size-fits-all answer to this question.

However, 2026 presents an opportunity that has been scarce for some time: balance, more options, and less chaos. You do not need to wait for the perfect moment; clarity and guidance are what truly matter.

Buying your first home should not feel rushed or intimidating.

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

If homeownership is on your radar this year, the best first step is not filling out an application.

It is discussing your plan with us.

When you are ready, we are here to help.