Buying a house in Chicago

Chicago, known for its vibrant culture and diverse neighborhoods, offers a unique blend of big-city energy in the heart of the Midwest. With over 250 music venues, world-class museums, and a thriving culinary scene, living in the Windy City promises a gust of culture and cool. And the good news for house-hunters? Chicago’s housing market is surprisingly affordable compared to other major cities. In this guide, we’ll walk you through the essential steps to navigate the Chicago real estate market and find your dream home.

Deciding Where to Live in Chicago:

Spanning 234 square miles and boasting 77 distinct neighborhoods, Chicago offers a wide range of vibes and price points. Whether you’re eyeing the trendy River North or the cozy Rogers Park, or even considering suburbs like Evanston or Naperville, it’s important to factor in essential expenses like transportation, utilities, and food. Keep in mind that the cost of living in Chicago is slightly higher than other Midwest cities, so budget accordingly.

How to Buy a House in Chicago:

1. Save for a Down Payment:
   • As of early 2022, the typical down payment in Chicago was around $29,000. However, this amount varies depending on the home’s price and the type of loan you choose. With excellent credit, you could put down as little as 3 percent.

2. Get Preapproved for a Mortgage:

   • Before house-hunting, secure a preapproval for a mortgage. This involves providing your financial information to a lender for a preliminary review, giving you a clearer idea of your budget.

3. Find the Right Lender:

   • Compare multiple lenders to find the best rates and lowest fees. Consider starting with a list of reputable lenders in Illinois and inquire about any existing customer discounts.

4. Find the Best Local Real Estate Agent:

   • Given Chicago’s size, a local real estate agent can be invaluable in narrowing down your search. They’ll help you identify neighborhoods and listings that align with your needs and budget.

5. Start House-Hunting and Make an Offer:

   • Consider your preferences, such as the type of property and commute distance. Take your time, as homes in Chicago spend an average of 65 days on the market. Craft a well-considered offer with the help of your agent.

6. Get a Home Inspection and Appraisal:

   • While a home inspection isn’t mandatory, it’s a smart move for peace of mind. An appraisal, however, is required for financed purchases to verify the property’s market value.

Requirements to Buy a House in Chicago:

Determine your budget by considering down payment, existing debts, and prevailing mortgage rates. Maintaining a good credit score is crucial for securing favorable rates. First-time homebuyers may explore programs offered by the Illinois Housing Development Authority for down payment and closing cost assistance.

Closing Day:

The final step in buying a home is the closing process. This involves a final walk-through, signing numerous documents, and settling closing costs, typically around 2 percent of the purchase price.

Conclusion:

Buying a home in Chicago is an exciting endeavor, offering a diverse range of neighborhoods and a lively urban experience. By carefully navigating the steps outlined in this guide, you can confidently embark on your journey to homeownership in the Windy City. Happy house-hunting!