If you began 2026 with the goal of homeownership, you are not alone. Many individuals and families share this ambition for various reasons, including the desire for stability, the potential for a long-term investment, and the opportunity to create a living space that reflects their personality, values, and lifestyle.

By approaching homeownership with a strategic mindset, you can improve your chances of making a well-informed decision that aligns with your aspirations, budget, and financial goals. 

Find Out How Much You Can Borrow

One of the most helpful strategic moves to make as a homebuyer in 2026 is to find out how much you can borrow. There are two methods to achieve this: prequalification and preapproval. It is essential to understand the differences between each of these terms.

The Prequalification Process

When you prequalify for a home loan, you receive a ballpark estimate of the amount you might be able to borrow based on the information you provide to your lender. Common types of basic information needed for a prequalification include income statements and bank account details. To get prequalified, a soft credit check is performed, which does not affect your credit score. You can request prequalification with most lenders either online or by phone.

It is important to remember that being prequalified does not guarantee you a loan from your lender. It is an initial step in the lending process that can help determine your potential buying power. On the other hand, preapproval offers a more detailed assessment of your financial situation and your budget for purchasing a home.

The Preapproval Process

If you want to know exactly how much you can borrow, rather than relying on a ballpark estimate, consider getting preapproved for a home loan. Preapproval gives you a clearer picture of your budget, enabling you to focus on homes within your financial range. Additionally, being preapproved can make you a more competitive buyer, as it demonstrates to sellers and agents that you are serious and have taken the necessary steps to secure financing.

Ameris Bank’s Decision Now program is a mortgage pre-approval program designed to give buyers a competitive edge with faster, underwriter-verified approval. It provides a solid pre-approval certificate after reviewing credit/income, and funds loans upfront, potentially shortening closing timelines to days. 

Determine Your True Homebuying Budget

The home loan amount that your lender preapproves may not reflect what you can comfortably afford. This is because the preapproval does not consider your personal expenses, lifestyle choices, or long-term financial goals. To make an informed decision, it's helpful to create a list of these expenses and other potential budget impacts. Examples of discretionary spending include vacations and travel, dining out, and entertainment.

By doing this, you can determine a mortgage payment that you are truly comfortable with each month. This exercise may help you avoid stretching your finances too thin, which can lead to unnecessary stress and long-term financial challenges.

Determine Your Price Range Strategically

Once you have obtained a preapproval offer from your lender and have established a comfortable monthly payment that fits your budget, you can begin the process of shopping for homes. It may be advantageous to focus your search on properties that fall within a price range that aligns with your predetermined monthly payment.

Plus, it is beneficial to be strategic and take into consideration factors such as property taxes, homeowners' insurance, and potential homeowner's association fees (HOAs). If you don't make a 20% down payment, you will be required to pay for mortgage insurance as well. Each of these can impact your monthly budget and overall homebuying power.

Sample Scenario

To illustrate how this works, let's use a home listed in Fulton County, Georgia, at $375,000 as an example. The home has a property tax rate of 0.86% in 2026,¹ which results in annual property taxes of $3,225, or $268.75 a month. The cost of homeowners' insurance can vary, but let's assume this home has a standard policy of $300,000, costing $2,400 a year, or $200 per month. In this scenario, the homebuyer would need to budget an additional $468.75 each month ($268.75 plus $200), in addition to the mortgage payment.

Additional funds would need to be allocated if the home has a homeowners' association (HOA) fee. The average monthly HOA fee in Atlanta, Georgia is $125,² but it can vary based on property size and location.

Lastly, include the cost of private mortgage insurance (PMI) if you are planning to make a down payment of less than 20% of the property's purchase price. The cost of PMI can vary based on the size of the home loan, the property type, your credit profile, and the loan-to-value (LTV) ratio.

Be Cautious About Overspending

Just because you have been preapproved for a specific home loan amount doesn't mean you should feel obligated to borrow the entire amount. Buying a home for less than the maximum can give you more budget flexibility, allowing you to set aside funds for emergencies, savings, and your lifestyle.

As you explore different neighborhoods and properties that meet your location and aesthetic needs, keep in mind your overall financial goals and how buying a home below your preapproved limit can benefit them.

Take Your Time

When looking for properties, it's wise to avoid rushing into a purchase. If you act too quickly, you risk several pitfalls, such as overpaying during competitive bidding situations or choosing a home that ultimately falls short of meeting both your immediate and long-term needs.

Imagine the frustration of making an impulsive home purchase, only to later discover a more suitable or affordable option right after committing to the first one. By approaching the homebuying journey with patience and a clear strategy, you can increase your chances of finding the right property.

Think Beyond 2026

While it's exciting to think about purchasing a home in 2026, it’s wise to think about the long-term implications of this investment on your financial stability and lifestyle. These might include factors such as potential appreciation or depreciation in property value, the impact of mortgage rates, and how the housing market might evolve. You might also want to refinance your mortgage or invest in home improvements and renovations in the future.

Moreover, it's important to reflect on your personal circumstances before making this commitment. Job security plays a vital role—having a stable income will provide peace of mind as you take on a mortgage. Additionally, revisit your family plans, as your housing needs might change over time. Location preferences are also important, such as proximity to work, schools, and amenities that align with your lifestyle.

If you would like to learn more about the home loan prequalification or preapproval processes, or speak with a mortgage banker about our various mortgage products, contact us today! 

Source:

¹https://www.zillow.com/mortgage-calculator/property-tax-calculator/

²https://www.rubyhome.com/blog/hoa-stats/

Disclaimer:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.