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First-Time Home Buyer Guide

Everything that happens between deciding to buy and getting the keys, in the order it happens, written for Chicago and the suburbs.

  1. 01

    Talk to a lender before you tour

    A pre-approval tells you what you can actually borrow and what the monthly payment looks like at today's rates. In Chicagoland, most sellers won't take an offer seriously without one. If you don't have a lender, I can introduce you to a few and you can compare.

  2. 02

    Set the budget you're comfortable with

    The number the bank approves and the number you want to spend each month are rarely the same. Work backward from a monthly payment that leaves room for savings. Remember property taxes vary widely between Chicago and the suburbs and can change the payment on the same-priced home by hundreds of dollars.

  3. 03

    Know what cash you need

    Plan for the down payment plus closing costs, lender fees, title, attorney, taxes and prepaid escrows. Earnest money is paid when your offer is accepted and applies to your purchase. Illinois and local programs exist for first-time buyers; your lender can tell you which you qualify for.

  4. 04

    Tour homes and get calibrated

    The first few showings are how you learn what your budget really buys in each area. Look at layout, natural light, parking, and what a commute actually feels like at the hour you'd make it. I'll point out what will cost you money later.

  5. 05

    Write the offer

    Price is one part. Closing date, contingencies, credits, and how the offer is packaged all matter, especially when there's competition. I'll tell you where the recent sales support the price and where they don't.

  6. 06

    Attorney review and inspection

    Illinois contracts include an attorney review period, and you'll have an inspection window. This is when issues get raised and repairs or credits get negotiated. Nothing here is a formality, it's your protection.

  7. 07

    Appraisal and final loan approval

    Your lender orders an appraisal and finishes underwriting. Don't open new credit, change jobs, or make large deposits during this stretch, it can delay or derail approval.

  8. 08

    Final walkthrough and closing

    You'll walk the home shortly before closing to confirm its condition, then sign at the closing table. In most Illinois transactions you get keys the same day.

Terms you'll hear

Earnest money
A good-faith deposit made when your offer is accepted; it applies toward your purchase.
Escrow
An account your lender uses to collect and pay property taxes and insurance with your monthly payment.
PMI
Mortgage insurance typically required when you put down less than 20 percent.
Attorney review
The period after acceptance when the attorneys can modify or cancel the contract.
Contingency
A condition that must be met, financing, inspection, or appraisal, or you can exit.
Assessments
Monthly HOA or condo association dues covering shared building and grounds costs.

Have a question about your first purchase?

Ask me anything, there's no obligation, and first-time buyers usually have the best questions.

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This guide is general information about the home buying process, not legal, tax, or lending advice. Loan programs, costs, and contract terms vary, confirm details with your lender and attorney.

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