Even as mortgage rates dip slightly, home affordability remains one of the biggest challenges facing buyers in 2026. Prices are still historically high, and competition, though less intense than in 2022, is strong for well-priced homes. For first-time buyers, this can feel discouraging. But with the right strategies, it’s still possible to enter the market wisely and build long-term value. Follow these tips to simplify the process with Queensborough's help:

Understand What “Affordability” Really Means

1. Affordability isn’t just about the listing price. It includes:
2. Monthly mortgage payments
3. Property taxes and homeowners' insurance
4. Maintenance and utilities
5. Private Mortgage Insurance (PMI) if your down payment is under 20%

Use a home affordability calculator to see what fits your full budget, not just what a lender approves you for. Lenders will consider your maximum capacity, but you should aim for a comfortable monthly payment that leaves room for savings and personal expenses.

Take Advantage of Down Payment Assistance and Grant Programs

Many buyers assume they need 20% down to buy a home. In reality, there are dozens of programs (federal, state, and local) that can make buying more attainable:

1. FHA loans (as little as 3.5% down)
2. Conventional 97 programs (3% down)
3. USDA or VA loans (0% down, for eligible applicants)
4. State and city first-time buyer grants, which often offer thousands in assistance
5. Ask your lender or local housing agency about programs you may qualify for, especially those tailored to your county or income range.

Explore Emerging Neighborhoods

If prices in your target area feel out of reach, look a few miles beyond the “hot” ZIP codes.
Emerging neighborhoods often offer:

1. Lower price-per-square-food
2. Faster appreciation potential over time

Consider smaller homes or condos as stepping stones into the market. Homeownership, even on a smaller scale, can build equity faster than waiting for the perfect house.

Get Pre-Approved Before You Shop

In a competitive market, pre-approval is your secret weapon. It:

1. Shows sellers you’re serious
2. Helps you set a realistic budget
3. Can speed up closing once you find the right home

A trusted lender can guide you through this process and ensure your financial documents are in order before you make an offer.

Don’t Forget Long-Term Affordability

Beyond the mortgage payment, plan for:

1. Home maintenance (1–3% of your home’s value per year)
2. Property taxes and potential increases
3. Insurance adjustments and HOA dues

Budgeting realistically now will prevent surprises later and make your first year of homeownership much less stressful.

Bottom Line

Buying your first home in today’s market may feel daunting, but it’s not impossible. With the right preparation and guidance from experienced professionals, you can make confident, informed decisions that lead to long-term financial stability.

Thinking about your first home?
Our mortgage specialists can help you explore loan options, assistance programs, and next steps toward pre-approval.
Contact your lender or stop by your local branch to start your journey to homeownership.