With home prices climbing for the last several years, becoming a homeowner feels like an unattainable goal for many. Balancing a down payment, emergency fund, and additional costs like taxes and insurance adds stress to what felt like a standard rite of passage for Americans. But just because becoming a homeowner may be more challenging doesn’t mean it’s impossible–especially in 2026.
In fact, buying a home may be more feasible now than it has been in years. According to CNBC, mortgage rates have “dropped below 6%, matching their lowest levels since 2022.” In Spokane, home prices have dropped 1% compared to last year. The gradual shift to a buyer’s market means those who were previously priced out of their dream to become homeowners may have an opportunity to achieve a lifelong goal.
If your goal is to buy a home in 2026, these tips will help you on your journey!
getting started
The first step in your home-ownership journey is to get pre-approved for a home loan. While it can be tempting to start with perusing homes on Zillow, you may end up falling in love with a home that isn’t in your budget right now. When you prioritize getting pre-approved for a loan, you can immediately narrow your search to homes within your price range–saving you time and energy.
It’s important to understand the difference between pre-approval and pre-qualification. Many online homebuyer options allow you to check if you are “pre-qualified” for a loan, but pre-qualification is an estimation of the funds you may be eligible for; it isn’t a guarantee.
Pre-qualification can be a helpful tool for gauging a range for your budget, but pre-approval means you are legitimately qualified for the loan. As a result, sellers know you’re serious when you are pre-approved for a loan rather than pre-qualified.
- pro tip
If you want to get an idea for your budget prior to meeting with your credit union, Canopy has a great home loan calculator.
how to get pre-approved
You can get pre-approved for a loan by making an appointment with a loan officer at Canopy Credit Union and preparing the appropriate documents:
- A copy of your driver’s license
- Last 2 years of W2 statements from your employer
- Last 30 days' worth of pay stubs
- Last 2 months of checking/savings statements
If you don’t have 2 years of W2 statements from your employer, that’s okay. Having recent, consistent employment history is attractive to lenders, but it isn’t always a requirement. At Canopy Credit Union, home loan officers always consider your entire financial picture when deciding on a loan. If you’ve changed jobs recently, it may not be a barrier for you.
Another important factor to qualify for a loan is credit, specifically:
- Credit score
- Credit history
- Diversity of credit
Your credit score is composed of various factors, such as meeting minimum monthly payments, utilizing less than 30% of your credit limit, and the length of your credit history. The higher your credit score, the more likely you are to qualify for a better rate on your home loan.
If you don’t have the best credit score right now, that’s okay! Your credit score can always improve with a careful plan and consistency. If you need help turning your credit score around, apply for free financial coaching with Canopy Credit Union. They can help you make changes that allow you to qualify for a home loan.
Sharing personal information with a lender can feel intimidating. It’s important to remember that these documents are a tool to help a lender determine what loan is sustainable for you to take on, not a reflection of your value.
signs of a good home loan
When you pursue a home loan, it’s easy to get caught up in whether or not you will be approved. One of the most important things to consider is whether the loan itself is good. Signs of a good loan you can easily look out for include:
- Comfortable Payments - your loan doesn’t push you to live month-to-month. With your downpayment, monthly expenses, and savings, you should feel comfortable paying off your mortgage.
- Clear Communication - your lending team should clearly explain the terms of your loan, answer questions, and ensure you understand the agreement.
- Transparency - the expenses of your home loan are clear. There are no hidden fees or surprise expenses. Any additional expenses, such as APR or closing costs, are clearly explained
- Low-Stress - you should never feel pressured to agree to a loan or payment outside your budget. While a Canopy loan officer will never do this, it is something to be aware of when seeking a home loan.
start shopping
If you follow these steps, you can start shopping with a home loan and peace of mind. To make the experience even easier (and enjoyable), there are a few extra steps you can take on your home-buying journey:
- Create a wants vs. needs list.
- Don’t consider homes outside your budget.
- Start with desirable neighborhoods, then look at homes.
- Visit as many homes as you can.
- Don't be afraid to ask for help.
You can check out more helpful tips in our free Home Buyer Guide!
We believe funding your dreams should come with financial confidence not at the cost of it. If you’re ready to take the next step towards home ownership, reach out to our lending team to get started! No matter where your financial journey has taken you, we’re here for you every step of the way.
