10 Lessons I Learned as a First-Time Homebuyer

By Christina Savage, marketing and operations manager

Yesterday I made my very first mortgage payment and let me tell you: it felt so good!

Last month I bought a two bedroom, two bath condo in Gunbarrel. It’s faces southwest, which means I have a partial view of the flatirons, sun in the winter and shade in the summer; it abuts a greenbelt; it’s in a private location; it’s next to a huge dog park and playground; and comes complete with super nice neighbors. I’m diggin’ it.

My just-turned-two-years-old son, Aidan, runs around the condo yelling, “Our new house, Our new house!” Quite entertaining and adorable to say the least.

Because I work for Stellar Properties and I help many of Tony’s buyers, I’m well adept at searching for properties. I had the entire MLS at my fingertips which made it that much easier and faster to find a home. I began my home search looking in Louisville, Lafayette, and Boulder, but eventually narrowed it down to three neighborhoods in Gunbarrel (an area in northeast Boulder). My price range was on the lower end, so I had a fairly small selection to choose from, but I was surprised to find out that I could still buy in Boulder and stay within my budget. I found that narrowing down my search to my favorite neighborhoods really helped me find what I was looking for.

Along the way, I learned 10 important tricks of the trade:

1. Start by getting in touch with a great loan officer who can explain the process to you in simple terms. Although my sister is a loan officer in Maryland, my stepmom is a real estate broker in North Carolina, and I work in the industry, there was so much I didn’t know. A good loan officer will prequalify you prior to your home search. It can be tricky to get a mortgage these days and you want to know you’ve got a very good chance of closing on a loan. Another thing a great loan officer will do is give you a sample of loan model scenarios. You’ll be able to see the differences in monthly payments based on the sales price and down payment. Sometimes you may be surprised that the difference in monthly payments might not be as significant as you thought they would be.
2. Work with a great real estate broker. Tony was my buyer’s agent and he was able to negotiate tooth and nail for me. I felt comforted knowing that if any problems came up, he’d be there as my advocate. A great real estate broker will also set up detailed searches for you. We use a tool that is part of our local MLS called MySite. It automatically searches based on your criteria and regularly sends new searches to your email inbox. You can sort through listings and categorize them so your agent can see what you love and what you don’t.
3. Make a list of must-haves and nice-to-haves. Based on your price range, be reasonable about what you’ll be able to find. Sure, I would have loved a garage; a Viking range; granite countertops; and stainless steel appliances, but those aren’t typical finds in my price range. My must-haves included the HOA allowing my cat; qualifying for FHA financing since I knew that was the loan I’d go with; nearby outdoor space for my son; and washer and dryer hookups in the unit. These were reasonable must-haves. And surprisingly, I ended up fulfilling most of my nice-to-haves as well!
4. Use a reliable internet search tool. I know many people are using sites like Zillow and Trulia, but I’d recommend using ColoProperty or REColorado. These two sites directly integrate in real time with the local MLS. ColoProperty is primarily used for northern Colorado listings, but if you’re looking in the metro area, REColorado is very helpful. I’ve found a lot of incorrect and outdated information on consumer sites like Zillow. It’s helpful to use a website that is the front end of the MLS, which 99 percent of real estate brokers use.
5. Be patient; if a deal falls through, something else better will most likely come along. Tony gave me this advice and he was right!
6. Examine the total cost of renting. If you think buying is more expensive than renting, look at the scenario in more detail. For example, if I had to continue renting and paying a security deposit, pet deposit, pet rent, parking payments, storage payments, market rent increases each year, separate water, trash, recycling, and insurance costs (these are all rolled into my HOA dues and mortgage payment now), I was going to lose my mind. Not to mention, there are great tax benefits to owning. Add it all up first; you may be pleasantly surprised!
7. Get a home warranty. I have one for two years. It cost around $500, but with a 26-year-old furnace that will likely break down soon, it’s well worth it. It covers the expenses of repair or replacement of all of my appliances, A/C, furnace, water heater, etc. Great peace of mind!
8. You get what you pay for. I learned this lesson the hard way. If you plan on hiring anyone to do work on your place, make sure you get multiple estimates and that you clearly communicate your expectations. Things ended up working out in my situation, but it was stressful to say the least!
9. Learn how to be handy. Growing up, my parents were so amazing at fixing and building things that I never had to learn how to do anything. Now I wish I had because I don’t want to hire someone every time I need to fix something. Luckily, I have some great friends who are helping me to finally embrace my inner handy-woman.
10. Chill out! I love home remodeling, decorating, and design. I have binders full of magazine clippings. There are so many things I’d like to update and buy for my place but I can’t do it all at once. I’ve done a few things to make it functional like installing more shelving in my laundry room (to store the plethora of kitchen appliances and cooking supplies I own!), upgrading a shower head, and painting, which I haven’t been able to do as a renter. I’ve found that much of the joy in remodeling comes with time. Slowly, but surely, I’ll make changes and enjoy the journey of it all.

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