Please follow the below steps to set up a static front page.

To create Homepage,

• Go to Pages > Add New

• Enter the Page Title for the Page. You do not need to enter anything in the content section for creating a home page
• Click on Publish

Creating Blog Page

• Go to Pages > Add New

• Enter the Page Title for the Page. Give the name as Blog as you are creating a blog page
• Click on Publish

Configuring Home Page and Blog Page

• Go to Appearance>Customize > Homepage Settings> Static Front Page
• Select A static page under Your homepage displays
• Select the page “Home” from the drop-down as homepage
• Select Blog page from the drop-down to set the Posts page
• Click Publish

Note: 

• The Featured Image of  the Page ( with Homepage Template) selected as  Front page will appear as a Banner Image if banner is enabled.
• The Title and content of the page of the Homepage will appear on the banner