Buying a home in Chicago is a big deal. Let’s make it a good one.
From first conversation to keys in hand, I'll make sure you know what's coming, what it means, and what to do next.
In a city full of options, knowing the process is half the battle.
Step 1: Know Where You Stand Financially
Before you start falling in love with listings, let's talk money. Not in a scary way, but in a "let's get you set up for success" way.
Check your credit score: Your score has a big impact on your mortgage rate. A higher score means better loan terms, which can save you real money over time.
Know your budget: How much house can you actually afford? That answer lives at the intersection of your income, your debts, and your savings. Getting clear on this number early saves heartache later.
Strengthen your position: Pay down existing debt, keep your bills current, and hold off on opening new credit lines. Small moves now can meaningfully improve your options.
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Most conventional loans require a score of 620 or higher, but the better your score, the better your rate. FHA loans can go as low as 580 with a 3.5% down payment. If you're not there yet, we can talk through next steps.
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A good rule of thumb is to have your down payment plus 2-5% of the purchase price set aside for closing costs, and a few months of mortgage payments in reserve. A common myth is that you need 20% down to buy a home - NOT TRUE. Plenty of first-time buyers are putting down 5-10% or even less on their first home purchase.
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A little, but not much. A hard credit inquiry typically drops your score by fewer than five points and the impact is temporary.
Thinking about buying but not sure you’re ready?
Get my free First Time Home Buyer’s Guide, written for exactly that moment. Take it at your own pace, get your questions answered, and reach out when you're ready to talk.
Step 2: Get Pre-approved for a Mortgage
Pre-approval is where things start to feel real. It tells you exactly what you can borrow, and it tells sellers you mean business.
Submit your financial details: Your lender will ask for income documentation, credit history, and debt information. It sounds like a lot, but it's pretty straightforward once you have your documents together.
Receive a loan estimate: This is where you find out how much you can borrow and at what terms. A good lender will walk you through the numbers so nothing feels like a surprise.
Get your pre-approval letter: This letter is your ticket to making an offer. In a competitive market like Chicago, most sellers won't consider an offer without one.
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Usually a few days to a week, depending on the lender and how quickly you can pull your documents together. Online lenders can sometimes turn it around faster.
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Not quite. Pre-approval is based on your finances at that moment. Avoid big purchases, job changes, or new credit lines between pre-approval and closing, as these can affect your final loan.
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Typically 60 to 90 days. If your search runs longer than that, you may need to refresh it with updated financial documents.
Step 3: Find an Agent and Start Your Search
This is the fun part. But before you start scheduling showings, it helps to get a few things straight.
Work with someone who knows the market: A good buyer's agent brings local expertise, negotiating experience, and honest guidance. In Chicago's competitive market, that relationship matters. A lot.
Define your priorities: Location, neighborhood vibe, commute, school districts, nearby amenities. Know what's non-negotiable and what you can live without. That list will evolve, and that's okay.
Choose your home type: Condo, single-family, two-flat, townhome. Each comes with different trade-offs around space, cost, maintenance, and lifestyle. We'll figure out what fits.
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Yes. As of August 2024, buyers are required to sign a Buyer Broker Agreement before touring homes with an agent. It outlines the scope of the relationship and how your agent is compensated. I'm happy to walk you through it before you sign anything.
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There's no magic number. Some buyers find their home on the third showing, others need twenty. The more clearly you define your priorities upfront, the more focused your search will be.
You found a place you love. Now comes the part where strategy really matters.
Determine your offer price: Your offer price should reflect what the market supports, not just what you're willing to pay. I'll pull comparable sales and help you come in at a number that's competitive without leaving money on the table.
Negotiate terms: Price is just one piece. Closing date, contingencies, and what stays with the home are all part of the conversation. A well-structured offer can be just as compelling as a high one.
Submit your offer: Your offer will include the purchase price, proposed closing date, and any contingencies. Once it's in, the seller can accept, reject, or counter. Then we go from there.
Step 4: Make an Offer
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Usually a few days to a week, depending on the lender and how quickly you can pull your documents together. Online lenders can sometimes turn it around faster.
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It depends on the property and the market. Some homes sell at or below asking, others attract multiple offers and go well over. I'll give you a clear picture of what the data says before you decide.
Step 5: Attorney Review and Home Inspection
Going under contract is exciting. But before you pop the champagne, there are two important things happening simultaneously.
Attorney review: In Illinois, both parties have five business days to review the contract with their attorney. Your attorney can request modifications, flag concerns, or in some cases cancel the contract. This is a standard and important protection for both sides.
Thorough inspection: A licensed inspector will assess the property from top to bottom, including the foundation, roof, plumbing, electrical, and HVAC. Plan to be there in person if you can. It's one of the best ways to really get to know the home you're buying.
Identify issues: The inspection report will flag everything from minor repairs to bigger concerns. Don't panic if the list is long. Every home has something. What matters is understanding what you're looking at.
Understand your options: If something significant turns up, you have choices. You can request repairs, negotiate a price reduction, or in some cases, walk away. This is exactly why contingencies exist.
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Yes. Illinois is an attorney review state, meaning an attorney is a standard part of every transaction. I can refer you to experienced real estate attorneys I trust.
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Typically between $300 and $500 for a condo in the Chicago area, and upwards of $800-$1,000 for a single family home, depending on how extensive the inspection is (e.g. adding on a sewer scope, mold inspection, etc.). A thorough inspection is one of the best investments you'll make in this process.
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You can, and some buyers do in very competitive situations. But it comes with real risk, especially in Chicago where older housing stock can hide expensive surprises. We'll talk through whether it makes sense for the specific property.
Step 6: Review Condo Documents
Buying a condo means you're not just buying a unit, you're buying into a building and an association. This step is specific to condo purchases, and it's an important one.
What you'll receive: The seller is required to provide a package of documents that includes the HOA's financial statements, meeting minutes, rules and regulations, and the declaration and bylaws. It's a lot of reading, but it tells you a lot about what you're getting into.
What to look for: You want a financially healthy association with adequate reserves, no major pending assessments, and a board that's on top of maintenance. Red flags include low reserve funds, deferred repairs, or a high percentage of renters in the building.
Your attorney reviews too: In Illinois, the condo document review period is part of attorney review. Your attorney will flag anything that warrants concern and can help you decide whether to proceed, negotiate, or walk away.
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In Illinois, you typically have five business days to review the documents once received. If something concerning turns up, you can cancel the contract during this window.
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A special assessment is a one-time charge to unit owners when the HOA doesn't have enough reserves to cover a major expense. Pending or recent special assessments are worth understanding before you close.
The finish line is in sight. Here's what happens in the final stretch.
Finalize your mortgage: Your lender will confirm your loan details and order an appraisal to verify the home's value. Stay in close touch with your loan officer during this period and respond to any requests quickly. Delays here can push your closing date.
Review your closing disclosure: A few days before closing you'll receive a document outlining your final loan terms, monthly payment, interest rate, and closing costs. Read it carefully and ask questions if anything looks off.
Do a final walkthrough: This is your last chance to confirm the home is in the condition you agreed to. Check that any requested repairs were made and that nothing has changed since your inspection.
Closing day: You'll sign a lot of documents. Bring your ID, any remaining funds for closing costs, and a little patience. At the end of it, you'll get the keys. That part never gets old!
Step 7: Prepare to Close
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Generally 2-5% of the purchase price, on top of your down payment. Your closing disclosure will break it all down so there are no surprises on the day.
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Common culprits include appraisal issues, problems that turn up in the title search, or last-minute changes to your financial situation. Staying responsive and avoiding big financial moves in the weeks before closing goes a long way.
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A government-issued photo ID, a cashier's check or wire transfer for your closing costs, and proof of homeowner's insurance. Your attorney and I will make sure you know exactly what to bring ahead of time.
Let’s Work Together
Connect with me to discover how I can help you find your dream home or sell your property. Your trusted real estate agent specializing in Chicago’s North Side, Evanston, Rogers Park, Ravenswood, Lincoln Square, and beyond!