I'm a Real Estate Agent: 7 Things You Must Do Before Buying a Home in the 2026 Market
Homebuyers in 2026 continue to face challenges because of high home prices and mortgage rates. But there is some good news. During the first quarter of 2026, the median price of homes sold in the U.S. fell to $403,200 from $412,300 the previous quarter and $423,100 the prior year, according to the Federal Reserve Bank of St. Louis (FRED). Prices might not be cheap, but they are trending lower.
On the downside, mortgage rates remain high compared with five or 10 years ago. Separate FRED data found that the average 30-year fixed rate mortgage was 6.52% as of June 11, 2026.
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Before you buy a home in 2026, here are seven things you must do, according to real estate agents.
1. Get Your Finances in Order
The first thing you should do before buying a home is ensure you’re in decent financial shape. If not, it’s time to clean up those finances, according to Brett Cobb, founder and owner of Premiere OKC Home Buyers.
“High interest rates are sure to make life difficult for buyers with poor credit ratings,” he told MoneyLion. “Buyers should reduce their outstanding balances on credit cards, refrain from purchasing new cars and refrain from financing any other nonessential item prior to making a mortgage application.”
A single credit score tier can mean the difference between a 6.5% and a 7.5% mortgage rate — a gap that translates to tens of thousands of dollars over the life of a loan.
2. Review All Ownership Costs
Another important step is to review all the costs that come with homeownership, said Jonathan Ayala, a real estate agent and founder at Real Estate Photography
“Homeownership incurs many costs beyond monthly mortgage payments, including taxes, maintenance and utility bills, HOA fees and unexpected repair costs,” Ayala said. “Affordability will be an ongoing market challenge in 2026. Buyers should be financially prepared for the challenge of ownership.”
Experts recommend homeowners budget 1% to 4% of their home's purchase price annually for maintenance alone. On a $400,000 home, that is $4,000 to $16,000 per year on top of your mortgage, taxes and insurance. Run the full number before you commit.
3. Take a Mortgage Payment ‘Test Drive’
Make a “practice” mortgage payment for a few months before buying, recommended Ben Mizes, co-founder of Clever Real Estate and a licensed real estate agent.
“Using the example of a projected mortgage payment of $3,200 and a current rental payment of $2,200, buyers should save the differential of $1,000 monthly now,” Mizes said. “This process actually funds the closing costs and helps to implement budgeting for future repairs.”
This is one of the most underused strategies in homebuying. It stress-tests your budget with real money, not hypothetical math, and it builds the savings cushion you'll need at closing.
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4. Get Preapproved
Getting preapproved for a loan eases the process when it’s time to buy, while also giving you a good idea of how much home you can afford.
Prequalification and preapproval are not the same thing, and confusing the two is a costly mistake. Prequalification is a rough estimate based on self-reported information. Preapproval is a verified assessment of your income, assets and credit — and it's the one that carries weight with sellers.
“Especially in a competitive selling market, full preapprovals backed by your income and assets are helpful,” Ayala said. “They can eliminate surprises and help buyers act promptly on a home.”
5. Research the Neighborhood
Finding an ideal home involves a lot more than just finding the right house. It also involves finding the right neighborhood.
“Potential buyers need to spend time researching and visiting the property and its surrounding area at different times of the day and week,” Cobb said. “Issues such as commuting distances, future development of the area, crime rates and schools need to be taken into account.”
A neighborhood that feels quiet on a Sunday afternoon can look completely different on a Tuesday morning or a Friday night.
6. Research Insurance Costs and Climate Risk
In addition to researching the community, you should research how the climate in your preferred area can impact your life and money.
“The surprise for buyers this year has been the high costs of insurance coupled with few available options,” Mizes said. “Buyers should be asking themselves, ‘Can I afford the house in five years?’ The earlier these buyers can begin researching flood zone and wildfire risk — and take a look at potential insurance policies to protect themselves — the better."
This is no longer a niche concern for buyers in coastal Florida or rural California. Before you make an offer, get an actual insurance quote. If coverage is unavailable, unaffordable or capped by a state-run insurer of last resort, that is material information that should affect your offer price — or your decision to buy at all.
7. Get an Independent Home Inspection
The most common mistake many buyers make is waiving inspections “to be more competitive with their offer,” Cobb said.
“I have seen many new homes that have structural, plumbing and even building defects. It’s essential for buyers to hire an independent inspector and be present during the inspection process. This inspection alone could save them thousands of dollars."
The Bottom Line
The 2026 housing market rewards preparation and punishes improvisation. Buyers who do the work — on their credit, their budget, their neighborhood research and their risk assessment — are the ones who close on homes they can actually afford to own. The buyers who skip steps are the ones who end up on the wrong side of an expensive lesson. Start early, run the real numbers and do not waive the inspection.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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