New Year, New Home: Setting Realistic Goals for 2026

Happy 2026, San Angelo! If your resolution for this year is to finally trade that rent receipt for a mortgage statement, you aren’t alone. The San Angelo housing market is entering the year with more balance than we've seen in a long time, making it an opportune moment for first-time buyers to make their move.

However, the path to homeownership isn't a sprint—it’s a well-planned marathon. To help you cross the finish line, we’ve put together the ultimate guide to setting realistic home-buying goals for 2026.

1. Setting a Realistic Timeline

In today’s market, you can't just find a house on Saturday and move in on Monday. A healthy timeline for a first-time buyer typically spans 6 to 12 months.

• Months 1-3: Focus on "financial fitness"—cleaning up credit and aggressive saving.

• Months 4-5: Get pre-approved by a local lender and start "window shopping" online to understand neighborhood pricing.

• Months 6-9: Active searching and touring. In San Angelo, homes are currently averaging about 52 days on the market, so you have a little more breathing room to decide than in years past.

• Month 10+: Under contract, inspections, and closing (usually a 30-45 day process).

2. Credit Improvement: The Key to Better Rates

While the average 30-year fixed mortgage rate is hovering around 6.1% to 6.3% early this year, your credit score determines if you get the "teaser" rate or something much higher.

• The Magic Number: Aim for a 620 minimum for most programs, but 740+ is where you’ll see the most significant interest rate discounts.

• Quick Fixes: Pay down revolving credit card balances to below 30% utilization.

• Avoid "Credit Noise": Don't open new car loans or furniture store credit cards while you’re planning to buy. Those "no interest for 12 months" deals can tank your debt-to-income ratio.

3. Savings & Budgeting: More Than Just a Down Payment

One of the biggest myths is that you need 20% down. In reality, many San Angelo buyers use FHA loans (3.5% down) or even 0% down programs like VA or USDA. However, you still need cash on hand for:

• Closing Costs: Typically 2–5% of the home price.

• Earnest Money: Usually around $500–$1,000 in our local market to show you're serious.

• The "Oops" Fund: Set aside $2,000 for immediate post-move-in repairs or essentials.

4. Local San Angelo Programs & Grants

San Angelo is incredibly supportive of first-time buyers. Don’t leave "free money" on the table!

• City of San Angelo Homebuyer Assistance Program (HAP): Provides up to $15,000 for down payments and closing costs for low-to-moderate-income families.

• Galilee CDC (GCDC): Offers a "gap reduction" program for new construction in target neighborhoods, sometimes providing mortgage buy-downs.

• TSAHC & TDHCA: Statewide programs that offer down payment assistance grants (often around 3-5% of the loan amount) that don't always have to be paid back.

5. Creating Your Home Wish List

The Concho Valley has a diverse range of homes, from historic Santa Rita gems to new builds near Bluffs. To keep your search focused, categorize your preferences:

The "Must-Haves" (Needs):

• Minimum number of bedrooms for your family or home office.

• Proximity to specific landmarks (Goodfellow AFB, ASU, or your workplace).

• A fenced yard if you have pets or young children.

• Structural integrity (a roof and HVAC system in good working order).

The "Nice-to-Haves" (Wants):

• Cosmetic finishes like granite countertops or stainless steel appliances.

• Specific flooring types (hardwood vs. luxury vinyl plank).

• A three-car garage or extra shop space.

• Smart home features or modern energy-efficient upgrades.

6. San Angelo Market Outlook for 2026

What should you expect this year?

• Inventory is Growing: Active listings in Texas are up nearly 9% compared to last year. This means more choices for you and less "bidding war" stress.

• Price Stability: Expect modest price growth (around 2%). The median sale price in San Angelo remains significantly more affordable than the Texas state average.

• Buyer Leverage: Sellers are more willing to negotiate on repairs or even offer "rate buy-downs" to help you get a lower monthly payment.

Ready to start your journey? Building your "Home Buying Team" is the best first step. Would you like me to help you draft a checklist of questions to ask a San Angelo real estate agent or lender during your first meeting?