Eight Tips for First-Time Buyers

1. Be Realistic. It’s important to remember that there is no perfect condo; therefore, be selective but reasonable when looking for your new condo.

2. Do Your Research. Decide what you need in a condo with our Needs Versus Wants Assessment then use our handy Your Condo Wish List worksheet to prioritize these things before you start looking. This crucial step will save you time and money.

3. Get Your Finances in Order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs. Also, be sure you don’t have too much credit. Lenders often consider how much credit you have available. Being maxed out on your credit is a sure way of getting turned down for a mortgage. It’s a good idea to postpone big purchases until after you’ve bought your condo. Try to pay off or pay down as much of your credit as possible prior to applying for a loan.

4. Don’t Wait to Get a Loan. Talk to a lender and get pre-approved for a mortgage before you start looking. You’ll save time during the closing by starting this process beforehand. Plus, you’ll know how much you can borrow.

5. Choose the Right Mortgage. Investigate all your options. Be sure to consider initial interest rates as well as future ones and any possible prepayment penalties.

6. Find Out When You Can Move. When is your lease up? Are you allowed to sublet?

7. Think Long-Term. Are you looking for a starter condo with the idea of moving up in a few years or do you hope to stay in this condo longer? Think about your long-term goals before searching for a new condo.

8. Don’t Let Yourself Get “House Poor.” If you max yourself out to buy the most expensive condo you can afford, you’ll have no money left for maintenance, decoration or to save money for other financial goals.

For additional mistakes to avoid as a first-time buyer, read the accompanying article, “Seven Costly Financing Mistakes Most First-Time Buyers Make and How to Avoid Them.”