Short answer: start with a mortgage pre-approval, set a budget that includes taxes and HOA dues, line up down payment help if you qualify, then tour, offer, and close with an attorney. In Illinois, most first-time purchases close about 30 to 45 days after the offer is accepted.
Step-by-Step: Buying Your First Home in Illinois
- Check your credit and savings. Many loan programs start around a 580–640 credit score; plan for a down payment plus closing costs.
- Get pre-approved. A lender reviews your income, debts and credit and tells you your price range. Sellers expect a pre-approval with every offer.
- Look into down payment help. Illinois buyers can use IHDA programs worth 4% to 10% of the price.
- Pick areas and tour homes. Compare towns, schools, commute and property taxes.
- Make an offer. Your agent helps you price it and write strong terms.
- Attorney review and inspection. Illinois contracts include an attorney review period, and you’ll usually have a home inspection.
- Appraisal, final approval and closing. Your lender orders an appraisal, finalizes the loan, and you sign at closing.
How Much House Can I Afford?
Your lender will look at your debt-to-income ratio: your total monthly debts, including the new mortgage, compared with your gross monthly income. Don’t forget that your payment includes property taxes, homeowners insurance, mortgage insurance on low-down-payment loans, and HOA dues for townhomes and condos.
Common Loan Options
- FHA: 3.5% down with flexible credit guidelines
- Conventional: as little as 3% down for some first-time buyers
- VA: no down payment for eligible veterans and service members
- ITIN loans: for buyers without a Social Security number; see buying a home with an ITIN
Closing Costs
Buyers typically pay about 2% to 5% of the price in closing costs, including lender fees, title charges, attorney fees and prepaid taxes and insurance. Your lender’s Loan Estimate shows your exact numbers.
Frequently Asked Questions
What is the first step to buying a house?
Get pre-approved by a mortgage lender. It tells you your price range and shows sellers you can close.
How much do I need for a down payment?
It depends on the loan: FHA requires 3.5%, some conventional loans allow 3%, and VA loans can require nothing down. Illinois buyers may also qualify for IHDA down payment assistance.
How long does it take to buy a house in Illinois?
Once your offer is accepted, most purchases close in about 30 to 45 days.
Do I need an attorney to buy a house in Illinois?
It isn’t required by law, but in the Chicago area buyers and sellers almost always hire a real estate attorney to review the contract and handle closing.
Work With a Local, Bilingual Agent
Buying your first home? I’ll walk you through every step, introduce you to lenders and down payment programs, and help you find the right place, in English or Spanish.