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Author: Seth Pfaehler

The Credit Score Myth That’s Holding Would-Be Buyers Back

Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t. And sometimes, it’s their credit score that’s holding them back.

According to a Bankrate survey, 2 out of every 5 (42%) Americans believe you need excellent credit to qualify for a mortgage. That may be why, when renters are asked why they don’t own yet, “my credit isn’t good enough” comes up often.

Maybe you’re in the same boat. You look at your score, see it’s not where you want it to be, and assume buying your first place just isn’t realistic right now.

But here’s what you need to know.

Even though a lot of people assume you need flawless credit to buy a house, that’s not necessarily the case.

You Don’t Need Perfect Credit To Buy a Home

So, where’s this myth come from? Part of the confusion stems from the fact that the typical homebuyer today does have a fairly strong credit score. In fact, according to data from the NY Fed, the median credit score for all buyers is 775.

But that doesn’t mean you need a score that high to qualify.

Looking at recent homebuyers, a number were able to get a mortgage with scores below that threshold. Data shows 10% of scores were around 660. Which means some were higher than that and some were lower, but the median in that lowest 10th percentile was around that range (see graph below):

a graph showing a line graphSo, even if your score isn’t as high as you want, that doesn’t automatically close the door. FICO explains there is no universal credit score you absolutely have to have when buying a home:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

The best thing to do is to talk to a trusted lender to see what’s possible for you. Because a portion of buyers are buying with scores in the 600s – and maybe that means you can too.

Bottom Line

Your credit score is important. But that doesn’t mean it has to be perfect.

If credit has been the reason you’ve been waiting to buy a home, it might be time to take another look at your options. If you want help understanding where you stand and what your next step could be, connect with a local lender.

You don’t need to have everything figured out to start the conversation.

Expert Forecasts Point to Affordability Improving in 2026

Wondering what to expect from the housing market in 2026? You’re not the only one. For the past few years, affordability has been the biggest barrier standing between most people and their next move. And a lot of buyers and sellers have been holding their breath waiting for things to get better. The good news? It’s finally happening.

In 2025, affordability was the best it’s been in 3 years. And experts agree the momentum will keep going in 2026. And that’s based on their analysis of the key factors shaping the housing market in the year ahead: mortgage rates, inventory, and home prices.

Lower Mortgage Rates Are Already Here 

Mortgage rates have already come down from their peak. By some counts, they dropped by almost a full percentage point over the course of the last year. And that’s a big deal, even if it doesn’t sound like it. But how low will they go? And should you wait for them to come down more? Here’s your answer. 

Forecasts suggest they’ll stay pretty much where they are now and hover in the low 6% range throughout 2026 (see graph below):

a graph with numbers and linesWhere they go from here really depends on what happens with the economy, the job market, and any changes in monetary policy the Fed makes in the year ahead. The important thing is, they’re already lower than they were just one year ago and that’s ideal if you’re planning a 2026 move.

  • For buyers: A lower rate reduces monthly payments and increases buying power. And, that combo helps more people qualify for homes that previously felt just out of reach.
  • For sellers: It may be time to accept that rates in the 6s are the new normal. And if you need to move, it’s doable, especially with your equity.

Even More Options Are on the Way

In 2025, the number of homes for sale improved by about 15%. As inventory rose, buyers regained things they hadn’t had in years: options, time to consider those options, and negotiating leverage. That helped restore more balance to the housing market.

Not to mention, the inventory gains are a big piece of what’s helped price growth slow down – which in turn improves affordability.

While the inventory gains this year aren’t expected to be as steep, experts at Realtor.com say the supply of homes for sale should grow by another 8.9% this year.

  • For buyers: That means even more choice and more negotiating power.
  • For sellers: Pricing your house right will be essential to draw in buyers.

Home Price Growth Is Slowing to a More Sustainable Pace

With more homes for sale, there isn’t as much upward pressure on prices right now. And we’ve seen that shake out over the past year. Even so, the overwhelming majority of experts say, nationally, prices will continue rising in the year ahead – just at a slower pace. On average, they say prices will rise by 1.6% in 2026 (see graph below):

a graph of increasing pricesAnd that’s reassuring if you’ve been fed content on social media saying prices are going to come crashing down. But here’s what you need to remember most about this. It’s going to vary a lot by area.

So, lean on a local agent for the latest on what’s happening where you are. Some markets will see prices rise more than this. Others may see prices come down slightly. It really all depends on conditions in your local market

But overall, prices will continue to rise at the national level. And that’s good for the market as a whole. As Realtor.com explains:

“For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers.”

  • For buyers: Expect more moderate price growth, not the sudden and intense spikes just a few short years ago. That gives you fewer surprises and more predictability, which makes budgeting a whole lot easier.
  • For sellers: This slower price growth restores balance without putting your equity at risk. And that’s a win. 

More Homes Will Sell 

All of this adds up to a better affordability equation in 2026. And that’s exactly why experts are saying we should see more homes sell (and more people buy) this year.

a graph of a graph showing the sales of a companyAs Mischa Fisher, Chief Economist at Zillow, says:

“Buyers are benefiting from more inventory and improved affordability, while sellers are seeing price stability and more consistent demand. Each group should have a bit more breathing room in 2026.”

The bottom line is, more people are finally going to be able to make their move this year. So, the question is: will you be one of them? The market is giving you an opportunity you haven’t had in a while. Maybe it’s time to take advantage of it.

Bottom Line

Affordability won’t change suddenly overnight. But, with several key trends working together, it should slowly and steadily improve in the months ahead.

That’s exactly why, in 2026, you should see a market with more balance, more predictability, and more breathing room than you’ve had in years.

Want more information about the opportunities unlocking in your local market? Connect with a real estate agent today.

Thinking about Selling Your House As-Is? Read This First.

If you’re thinking about selling your house this year, you may be torn between two options:

  • Do you sell it as-is and make it easier on yourself? No repairs. No effort.
  • Or do you fix it up a bit first – so it shows well and sells for as much as possible?

In 2026, that decision matters more than it used to. Here’s what you need to know.

More Competition Means Your Home’s Condition Is More Important Again

Over the past year, the number of homes for sale has been climbing. And this year, a Realtor.com forecast says it could go up another 8.9%. That matters. As buyers gain more options, they also re-gain the ability to be selective. So, the details are starting to count again.

That’s one reason most sellers choose to make some updates before listing. 

According to a recent study from the National Association of Realtors (NAR), two-thirds of sellers (65%) completed minor repairs or improvements before selling (the blue and the green in the chart below). And only one-third (35%) sold as-is:

a pie chart with text

What Selling As-Is Really Means

Selling as-is means you’re signaling upfront that you won’t handle repairs before listing or negotiate fixes after inspection. That can definitely simplify things on your end, but it also narrows your buyer pool.

Homes that are move-in ready typically attract more buyers and stronger offers. On the flip side, when a home needs work, fewer buyers are willing to take it on. That can mean fewer showings, fewer offers, more time on the market, and often a lower final price.

It doesn’t mean your house won’t sell – it just means it may not sell for as much as it could have.

How an Agent Can Help

So, what should you do? The answer isn’t one-size-fits-all. It’s going to depend a lot on your house and your local market.

And that’s why working with an agent is a must. The right agent will help you weigh your options and anticipate what your house may sell for either way – and that can be a key factor in your final decision. 

  • If you choose to sell as-is: They’ll call attention to the best features, like the location, size, and more, so it’s easy for buyers to see the potential, not just the projects.
  • If you decide to make repairs: Your agent can pinpoint what’s really worth the time and effort based on your budget and what buyers care about the most.

The good news is, there’s still time to get repairs done. Typically speaking, the spring is the peak homebuying season, so there are still several months left before buyer demand will be at its seasonal high. That means you have time to make some repairs, without rushing or stressing, and still hit the listing sweet spot.

The choice is yours. No matter what you end up picking, your agent will market your house to draw in as many buyers as possible. And in today’s market, that expertise is going to be worth it.

Bottom Line

While selling as-is can still make sense in certain situations, in some markets today, it may cost you. So, no, you don’t have to make repairs before you list. But you may want to.

To make sure you’re considering all your options and making the best choice possible, connect with an agent to have a quick conversation about your house.

Why Pre-Approval Should Be Your First Step – Not an Afterthought

Finding the right home feels exciting – but being pre-approved for your loan is what makes it possible. Whether you’re planning to buy soon or still just thinking about it, getting pre-approved is one of the best moves you can make. Here’s why.

1. What Is Pre-Approval, Really?

Pre-approval is much more than a guess. It means a lender has reviewed your finances (things like your income, assets, credit score, debts, and savings) and told you how much they’re willing to let you borrow for your loan.

It’s basically a reality check for your home search, so you can make sure it aligns with your budget and shop confidently when you’re ready to go.

2. Why It’s a Power Move (Especially Right Now)

The housing market’s been shifting lately with mortgage rates moving, prices moderating, and inventory rising. So, knowing what you’re working with in the current market is a big reason why pre-approval matters. Here’s what it gives you:

  • Clarity: You’ll know what you can afford before you fall in love with a house that’s potentially out of reach.
  • Confidence: Sellers will take your offer seriously when they see you’re pre-approved because you’re not a risky buyer.
  • Control: If rates come down and you want to jump on the moment, you’re already a step ahead with your plan.

As Experian explains:

“. . . you’ll want to make sure you receive your preapproval letter before you start looking at homes so you can submit a strong offer as soon as you find what you want. The process can take anywhere from a day to a few weeks, so if you procrastinate, you may lose out to a competing offer.”

And once you find a home you want to put an offer on, pre-approval has another big perk. It not only makes your offer stronger, it shows sellers you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Translation: Pre-approval helps you make stronger, more informed decisions – and it helps you avoid missing out on a home or getting stuck on the sidelines when the right one hits the market. Because the reality is, competition might be lower these days, but desirable homes (especially the ones that are priced well) still go quickly.

3. Don’t Wait Until You’re “Ready”

Think of it this way: pre-approval doesn’t mean you’re buying a house tomorrow. It just means you’ll be ready when the time comes. And most pre-approvals are good for 60–90 days and can be refreshed easily if your plans change.

So, here’s a good place to start. Ask yourself this question: “If the perfect home came along today, would you be ready to make an offer?”

If your answer is “not quite,” then pre-approval is your next step.

Bottom Line

Pre-approval doesn’t box you in. It opens doors.

In today’s market, buyers who win aren’t the ones who wait. They’re the ones who plan. So, if you’re even thinking about buying in the next few months, get ahead of the game by connecting with your agent and a trusted lender.

They’ll help you understand what how the process works and walk you through every step along the way, so when the right home pops up, you’re ready.

Stay informed