Buying a Condo for the First Time? Tips to Know as a First-Time Condo Buyer

There’s something exciting about buying your first home. The possibility of a space that’s truly yours — where you can paint the walls any color you like, hang pictures wherever you want, and build memories with the people you love. For many first-time buyers across New England, a condominium offers an ideal entry point into homeownership.

Condos can be particularly appealing: often more affordable than single-family homes, they typically require less maintenance and frequently come with amenities like pools, fitness centers, or community spaces. But buying a condo isn’t quite like buying a traditional house. There are unique considerations, additional parties involved, and some homework you’ll want to do before signing on the dotted line.

Whether you’re eyeing a charming condo in a bustling downtown area, a beachside unit along the coast, or something cozy in one of New England’s many beautiful towns, this guide will walk you through everything you need to know.

Step 1: Get Your Finances in Order

Before you start browsing listings and attending open houses, take a clear-eyed look at your financial situation. Buying a condo involves more than just the purchase price — there are ongoing costs you’ll need to plan for.

Calculate what you can truly afford

A helpful rule of thumb: keep your total housing payments under 30% of your gross monthly income. But with a condo, “total housing payments” includes more than just your mortgage. You’ll also need to factor in:

• Monthly mortgage payment (principal and interest)
• Property taxes
• Condo association fees (also called HOA fees)
• Homeowner’s insurance (condo-specific policies)
• Utilities not covered by the association

Add these together before deciding on your price range. It’s easy to fall in love with a unit only to realize the monthly association fees push it beyond your budget.

Gather your documentation

Mortgage lenders will want to see a comprehensive picture of your finances. Start gathering these documents now to speed up the pre-approval process:

• Recent pay stubs (typically the last 30 days)
• W-2 forms or tax returns from the past two years
• Bank statements from all accounts
• Documentation of other assets (retirement accounts, investments)
• Information about any debts or ongoing financial obligations

Having these ready will make the mortgage application process much smoother.

Step 2: Start Saving for Your Down Payment

The down payment is often the biggest hurdle for first-time buyers. While the traditional advice suggests putting 20% down, many buyers — especially first-timers — put down considerably less.

Depending on your loan type and qualifications, you might be able to put down as little as 3-5%. However, putting down less than 20% typically means you’ll need to pay private mortgage insurance (PMI), which adds to your monthly costs.

Down payment strategies:

• Use a down payment calculator to determine your target amount
• Set up automatic transfers to a dedicated savings account
• Look into first-time homebuyer programs that may offer down payment assistance
• Consider whether family members might be able to help with a gift

Remember, you’ll also need money for closing costs (typically 2-5% of the purchase price) and moving expenses, so don’t put every penny toward your down payment.

Step 3: Understand Your Credit Situation

Your credit score significantly impacts your mortgage options and interest rate. Before you start the buying process, check your credit report for accuracy and take steps to improve your score if needed.

Credit-boosting strategies:

• Pay all bills on time, every time
• Pay down existing credit card balances
• Avoid opening new credit accounts or making large purchases on credit
• Don’t close old credit accounts (length of credit history matters)
• Dispute any errors you find on your credit report

Even small improvements to your credit score can result in meaningful savings over the life of your mortgage.

Step 4: Create Your Must-Have List

Now comes the fun part — envisioning your future home! But before you get swept away by granite countertops and stunning views, take time to distinguish between what you need and what you want.

Must-haves are non-negotiables. If a condo doesn’t have these features, cross it off your list:

• Minimum number of bedrooms and bathrooms
• Location requirements (commute distance, neighborhood safety)
• Accessibility needs
• Pet-friendliness (many condos have pet restrictions)
• Parking (essential in many New England communities)

Nice-to-haves are features you’d love but could live without:

• Specific finishes or upgrades
• Extra amenities
• Particular floor or view
• In-unit laundry

Being clear about these categories helps you make decisions more efficiently and avoid falling for a beautiful unit that doesn’t meet your practical needs.

Step 5: Learn About Condo Associations

Here’s where condo buying differs most significantly from purchasing a single-family home. When you buy a condo, you’re not just buying a unit — you’re joining a community governed by a condo association (sometimes called an HOA or homeowners association).

What condo associations do:

Condo associations manage the shared aspects of your building or community. This typically includes:

• Maintaining common areas (lobbies, hallways, grounds, pools, gyms)
• Managing the building’s exterior and structural elements
• Carrying a master insurance policy for the building
• Setting and enforcing community rules
• Building and maintaining reserve funds for major repairs

Understanding association fees:

Your monthly association fees pay for these services. Fees vary widely depending on the property — a basic building might charge $200 per month, while a luxury high-rise with extensive amenities could charge $1,000 or more.

Ask what the fees cover. In some associations, fees include heat, water, or even cable and internet. In others, these are your responsibility. Understanding exactly what’s included helps you compare properties accurately.

Review the CC&Rs:

Before making an offer, request a copy of the condo association’s Covenants, Conditions, and Restrictions (CC&Rs). This document outlines the rules you’ll be expected to follow. Common regulations include:

• Pet restrictions (size limits, breed restrictions, or no pets allowed)
• Rental restrictions (important if you might want to rent out your unit later)
• Renovation and modification rules
• Noise policies
• Parking regulations
• Rules about what can be displayed on balconies or windows

Read these carefully. If you can’t live with certain rules, it’s better to find out before you buy.

Assess the association’s financial health:

A well-managed association with healthy reserves is crucial. Request the following documents:

• Recent financial statements
• Reserve fund balance and reserve study
• Minutes from recent board meetings
• Any pending or anticipated special assessments

A special assessment is an extra charge levied on all unit owners to cover unexpected expenses or major repairs not covered by reserves. These can be substantial — sometimes thousands of dollars — so knowing about any pending assessments is essential.

Step 6: Find the Right Home Inspector

Never skip the inspection. While your association handles building-wide maintenance, you’re responsible for everything inside your unit’s walls. A thorough inspection can reveal problems that might not be obvious during a showing.

What to look for in an inspector:

• Someone who complies with recognized Home Inspection Standards of Practice
• A Certified Master Inspector, if possible
• Experience specifically with condominiums
• Willingness to test for issues like mold, pests, or radon (these may require specialized testing)

Be present during the inspection if you can. This is your opportunity to ask questions, learn about the systems in your unit, and understand any issues the inspector discovers.

Making the Purchase: Final Steps

Once you’ve found the right condo and completed your due diligence:

Make a thoughtful offer: Work with your real estate agent to determine an appropriate offer based on comparable sales and market conditions.

Navigate the closing process: Your lender and real estate agent will guide you through the paperwork. Expect to sign many documents and bring certified funds for closing costs.

Get proper insurance: You’ll need a condo-specific insurance policy (often called an HO-6 policy) that covers your personal property and the interior of your unit. Your association’s master policy covers the building structure and common areas, but it doesn’t protect your belongings or interior.

Plan your move: Congratulations — you’re a homeowner! Coordinate your move, notify relevant parties of your address change, and start making your new place feel like home.

New England-Specific Considerations

Buying a condo in New England comes with some unique factors worth considering:

Heating costs: Our winters are no joke. Ask about heating systems and average winter utility costs. Some older buildings may have less efficient heating, which can significantly impact your monthly expenses.

Snow removal: Clarify who handles snow removal for walkways, parking areas, and your personal vehicle. This is typically an association responsibility, but policies vary.

Seasonal considerations: If possible, visit the property in different seasons. A condo that’s charming in summer might reveal issues in winter — poor insulation, ice dam problems, or inadequate parking lot clearing.

Flood zones: Some New England coastal and riverside communities have properties in flood zones. Understand whether flood insurance is required and what additional costs might be involved.

FAQ

Q: What’s the difference between condo fees and property taxes?
A: Property taxes are paid to your local government based on your property’s assessed value. Condo fees are paid to your association for building maintenance, amenities, and reserves. You’ll pay both as a condo owner.

Q: Can the condo association raise fees whenever they want?
A: Associations can increase fees, typically through a board vote. Review the association’s history of fee increases and check the bylaws for any limitations on how much fees can be raised.

Q: What happens if I can’t follow a condo rule?
A: Violations can result in warnings, fines, or legal action, depending on the severity and your association’s policies. If you know you can’t comply with a particular rule, it’s best not to purchase in that community.

Q: Do I need a real estate agent to buy a condo?
A: While not required, working with an agent experienced in condo purchases is highly recommended. They can help you navigate the unique aspects of condo buying and ensure you receive all necessary documentation.

Q: How is condo insurance different from regular homeowner’s insurance?
A: Condo insurance (HO-6) covers your personal property and the interior of your unit, plus liability protection. The association’s master policy covers the building structure and common areas. Together, they provide comprehensive protection.

Q: Are there first-time homebuyer programs available in New England?
A: Yes! Each New England state offers various first-time homebuyer programs, including down payment assistance, favorable loan terms, and educational resources. Check with your state’s housing finance agency for current offerings.