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Zillow’s 2026 Housing Report Reveals 7 Surprising Things About Today’s Homebuyers
72% of Homebuyers Only Apply With One Mortgage Lender. Zillow’s 2026 Report Reveals Why That Matters.
From mortgage shopping and down payments to AI and homebuying stress, Zillow’s latest research reveals what buyers are experiencing and what you can learn before purchasing your next home.
Buying a home has never been as simple as finding a house you love, making an offer, and getting a mortgage.
Between home prices, mortgage rates, financing options, and the competition for desirable properties, today’s buyers have plenty to think about.
But what are homebuyers actually experiencing in 2026?
Zillow recently released its 2026 Consumer Housing Trends Report, offering a detailed look at how Americans search for homes, obtain financing, choose real estate agents, and navigate the homebuying process.
Some of the findings might surprise you.
We found several statistics particularly interesting, especially when it comes to how buyers approach mortgage financing.
Let’s look at seven important takeaways and, more importantly, what they mean for you.
1. 72% of Mortgage Buyers Applied With Only One Lender
This might be one of the most interesting findings in the entire report.
According to Zillow, 72% of buyers who financed their home submitted only one mortgage application, up from 69% in 2025 and 62% in 2024.
Think about that.
Buying a home is one of the largest financial decisions most people will ever make, yet nearly three out of four mortgage buyers only submitted one application.
Now, applying with just one lender isn’t necessarily a mistake. But assuming the first lender you speak with offers the most suitable mortgage for your situation can be expensive.
Different lenders have different interest rates, fees, underwriting guidelines, and loan programs.
One lender might offer a competitive rate but charge higher origination fees. Another might have more flexible guidelines for self-employed borrowers, while a third could offer a program better suited for your down payment or credit profile.
Here’s something many buyers don’t realize: Working with a mortgage broker doesn’t mean you’re limited to one lender.
At Innovative Mortgage Brokers, we work with more than 30 wholesale lenders, allowing us to compare multiple financing options without requiring you to contact each lender individually.
The goal isn’t simply to find a competitive interest rate. It’s to find a mortgage that makes sense for your financial situation, with competitive rates, reasonable fees, and a smooth path to closing.
Our advice: Before committing to a mortgage company, understand your options. Compare the interest rate, APR, lender fees, points, mortgage insurance, and total closing costs, not just the advertised rate.
2. Half of Mortgage Buyers Put Less Than 20% Down
Still think you need 20% down to buy a home?
Zillow’s findings tell a different story.
In 2026, 50% of mortgage buyers put less than 20% down on their homes.
That’s important because the 20% down payment misconception continues to prevent some potential buyers from even exploring homeownership.
The reality is that different mortgage programs have different down payment requirements.
For example:
- Conventional loans: Some eligible borrowers may qualify with as little as 3% down.
- FHA loans: Qualified borrowers may purchase with as little as 3.5% down.
- VA loans: Eligible veterans, service members, and certain other borrowers may qualify without a down payment.
- Other mortgage programs: Additional financing options may be available depending on your income, assets, credit, and property type.
Of course, a smaller down payment may mean a larger mortgage balance and additional mortgage insurance costs.
But putting 20% down isn’t automatically the right financial decision for everyone, either.
For some buyers, keeping additional money available for emergencies, home improvements, or other financial goals may be worth considering.
Our advice: Don’t base your homebuying plans on a down payment rule you heard years ago. Review the actual mortgage programs available to you and compare the monthly payments, upfront costs, and long-term financial impact.
3. 22% of Mortgage Buyers Experienced at Least One Denial
Here’s another statistic worth discussing.
Zillow found that 22% of buyers who ultimately financed a home reported at least one mortgage denial before obtaining approval.
That’s down from 29% in 2025, but it still means more than one in five successful mortgage buyers experienced a financing setback.
And here’s something we’ve learned over the years:
A mortgage denial from one lender doesn’t always mean you cannot qualify for a mortgage.
Different lenders may have different underwriting requirements, and different mortgage programs evaluate borrowers differently.
For example, a self-employed borrower might have difficulty qualifying for a conventional mortgage because their tax returns show substantial business deductions.
That same borrower might qualify for a bank statement mortgage, depending on their income, credit, assets, and other factors.
Similarly, a borrower who doesn’t meet one lender’s guidelines may have other options available.
That doesn’t mean every denial can be overturned. Sometimes the appropriate solution is to pay down debt, improve credit, increase savings, or wait until income is better documented.
But before giving up, it’s worth understanding exactly why the mortgage was denied.
Our advice: If you’ve been turned down for a mortgage, get a clear explanation of the reason and consider having an experienced mortgage broker review your situation. There may be another path forward.
4. More Buyers Are Getting Serious About Mortgage Financing Earlier
One encouraging trend is that buyers appear to be thinking about financing earlier in the homebuying process.
According to Zillow, 29% of buyers contacted a mortgage lender as their very first homebuying activity, compared with 18% in 2025.
Additionally, 47% reported getting pre-approved within their first three homebuying steps.
That’s a positive development.
Why?
Because one of the biggest mistakes buyers can make is falling in love with a home before understanding what they can realistically afford.
A mortgage pre-approval can help you understand:
- How much you may qualify to borrow.
- What your estimated monthly housing payment could look like.
- How much money you’ll need for the down payment and closing costs.
- Which loan programs may be appropriate.
- Whether any credit, income, or documentation issues need to be addressed.
However, not all pre-approvals are created equal.
There’s a significant difference between a lender issuing a pre-approval based primarily on information you entered online and a mortgage professional carefully reviewing your income, assets, credit, and financial documentation.
At Innovative Mortgage Brokers, we believe in reviewing these details upfront whenever possible.
Why discover a potential financing problem two weeks before closing when you could identify it before making an offer?
Our advice: Get properly pre-approved before seriously shopping for a home. And make sure you understand how thoroughly your financial information has been reviewed.
5. AI Is Changing How Americans Shop for Homes
Artificial intelligence is becoming part of the homebuying experience.
Zillow reports that 82% of buyers use AI generally, and among those buyers, 61% used it during their homebuying journey.
Among buyers who used AI for homebuying, the most common uses included:
- Learning about the homebuying process: 74%
- Getting housing market insights: 71%
- Finding or recommending homes: 70%
It’s easy to understand why.
AI can help buyers research neighborhoods, understand mortgage terminology, compare scenarios, and prepare questions before speaking with a professional.
And I think that’s a good thing.
The more educated a buyer is, the better questions they can ask.
However, there’s an important distinction between obtaining general information and receiving personalized mortgage advice.
AI doesn’t necessarily know which lender guidelines apply to your particular situation, how your income will be calculated by an underwriter, or whether a specific loan program is actually available to you.
For example, two borrowers earning the same amount of money could qualify for very different mortgage amounts based on their debts, credit, employment history, and how their income is documented.
Our advice: Use AI to educate yourself, but verify important financing decisions with an experienced mortgage professional who can review your actual financial situation.
6. 64% of Buyers Found the Process Stressful
Buying a home should be exciting.
Unfortunately, for many buyers, it’s also stressful.
Zillow found that 64% of homebuyers described the process as at least somewhat stressful, and 34% reported crying at some point during their homebuying experience.
Among first-time buyers, that number climbed to 44%.
Those are some eye-opening statistics.
But when you consider everything involved in buying a home, they aren’t entirely surprising.
You’re making a major financial commitment, dealing with deadlines, submitting financial documentation, negotiating with sellers, scheduling inspections, and coordinating multiple parties.
And when communication breaks down, uncertainty can turn into unnecessary anxiety.
That’s why we believe communication is one of the most overlooked parts of choosing a mortgage company.
A competitive interest rate is important, but so is having someone who answers your questions, explains what happens next, and keeps you informed throughout the process.
You shouldn’t have to chase your mortgage company for updates or wonder whether your loan is moving forward.
Our advice: When comparing mortgage professionals, ask about their communication process, availability, experience, and how they handle unexpected issues. The experience matters just as much as the numbers.
7. Repeat Buyers Are Driving More of the Housing Market
Zillow’s report found that 58% of successful homebuyers in 2026 were repeat buyers, compared with 55% in 2025 and 50% in 2023.
First-time buyers represented the remaining 42%.
That tells us something important: Many people purchasing homes today already own or have previously owned a property.
For repeat buyers, financing can involve additional considerations.
You might be trying to purchase a new home before selling your current property.
You may need to determine whether you can qualify while carrying two mortgage payments.
Or perhaps you’re deciding whether to sell your current home or convert it into a rental property.
These situations can create opportunities, but they also require planning.
Depending on your circumstances and applicable mortgage guidelines, you may be able to use proceeds from your current home, eligible rental income, or other assets to help qualify.
Our advice: If you’re planning to move, don’t assume you have to sell your current home before exploring your next purchase. Speak with a mortgage professional early to understand your financing options.
What Zillow’s 2026 Housing Report Means for Buyers in Pennsylvania and Florida
Whether you’re purchasing a first home in Bucks County, moving to a larger property in Montgomery County, buying in Philadelphia, or considering a home in Florida, these findings highlight an important lesson.
The mortgage process should begin with a plan, not just an interest rate.
Every buyer’s situation is different.
A first-time buyer with a small down payment has different needs than a self-employed business owner purchasing a larger home.
A family moving from one property to another faces different financing questions than an investor purchasing a rental property.
And someone who recently received a mortgage denial may need an entirely different approach.
That’s why understanding your options before making major decisions is so important.
The Bottom Line
Zillow’s 2026 report shows that buyers are becoming more informed, technology is playing a greater role in the process, and more people are thinking about financing earlier.
But it also reveals that many buyers still submit only one mortgage application, misunderstand down payment requirements, and experience unnecessary stress along the way.
Buying a home doesn’t need to be complicated, but it does require the right preparation and guidance.
The goal isn’t just to get approved for a mortgage.
It’s to understand your options, make confident financial decisions, and get to the closing table without unnecessary surprises.
Let’s Talk About Your Mortgage Options
At Innovative Mortgage Brokers, we help homebuyers throughout Pennsylvania and Florida explore financing options from more than 30 wholesale lenders.
Whether you’re buying your first home, upgrading to a larger property, purchasing an investment property, or looking for a second opinion on a mortgage offer, we’re here to help make the process faster, easier, and more affordable.
Before you make your next move, let’s have a conversation about your options.
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