Buying your first home in Chicago is an exciting milestone, but the process can feel overwhelming without a clear plan. To help you stay organized and confident, here’s a comprehensive checklist for first-time buyers to follow.
1. Assess Your Financial Readiness
Before you start house hunting, review your financial situation.
✅ Check Your Credit Score: Aim for a score of 620+ for conventional loans or 580+ for FHA loans. A higher score can secure better mortgage rates.
✅ Review Your Debt-to-Income Ratio (DTI): Lenders typically prefer a DTI below 36%.
✅ Save for a Down Payment: Conventional loans may require 5-20%, while FHA loans can require as little as 3.5%.
✅ Plan for Closing Costs: These typically range from 2-5% of the home’s purchase price.
Tip: There are several budgeting apps that will help make budgeting your finances easy. Click here to watch the video above.
2. Get Pre-Approved for a Mortgage
Securing pre-approval is a crucial step in strengthening your offer when you find the right home.
✅ Gather financial documents like pay stubs, tax returns, and bank statements.
✅ Research lenders and compare interest rates to find the best deal.
✅ Pre-approval letters show sellers you’re a serious buyer with financing in place.
3. Define Your Needs and Wants
Knowing what you’re looking for will streamline your home search.
✅ Prioritize Must-Have Features: Consider bedroom count, square footage, and parking.
✅ Location Matters: Research neighborhoods like West Loop, Bronzeville, or Avondale for affordability and amenities.
✅ Future Plans: Consider school districts, commute times, and local development.
(source: Brookfield Residential)
4. Hire a Real Estate Agent
A knowledgeable Chicago-based agent can guide you through the buying process and negotiate on your behalf.
✅ Find an agent experienced in your desired neighborhoods.
✅ Ask for referrals and read reviews before selecting your agent.
✅ A strong agent can identify off-market deals and help you stay within budget.
(source: McKissock)
5. Begin Your Home Search
Once pre-approved, start exploring available properties.
✅ Use platforms like Redfin, Zillow, and Realtor.com for listings.
✅ Attend open houses and schedule private tours to compare options.
✅ Take notes on each home’s condition, layout, and potential maintenance needs.
(source: Cyprus CU Blog)
6. Make a Competitive Offer
When you find the right home, submit a strong offer to increase your chances of success.
✅ Base your offer on recent comparable sales (“comps”) in the area.
✅ Consider adding contingencies for inspections or financing.
✅ Your agent can help you craft an appealing offer that aligns with market conditions.
(source: Zell Law)
7. Schedule a Home Inspection
Never skip the inspection — it protects you from costly surprises.
✅ Hire a certified inspector to assess the home’s condition.
✅ Review the inspection report closely and negotiate repairs if necessary.
(source: Assurance Financial)
8. Finalize Your Mortgage and Close the Sale
The closing process finalizes your home purchase.
✅ Lock in your mortgage rate to secure stable monthly payments.
✅ Review your closing disclosure to confirm all costs.
✅ Bring your ID, proof of insurance, and closing funds to your closing appointment.
(source: iStock images)
9. Plan Your Move
With the sale complete, it’s time to organize your move.
✅ Book movers early and create a moving checklist.
✅ Update your address with utility providers, banks, and subscriptions.
✅ Familiarize yourself with your new neighborhood before move-in day.
(source: Move-Tastic)
Conclusion: Taking the First Step
Buying your first home in Chicago is a rewarding experience when you approach it with preparation and knowledge. Following this checklist will help you navigate the process confidently and avoid common pitfalls.
Thinking about buying your first home in Chicago? Contact a local real estate expert to get started on your journey.
