Tips on Buying A House in Illinois
Thinking about buying a house in Illinois? Great choice! Illinois is home to diverse cities, charming small towns, and some of the most welcoming communities in the Midwest.
If you're looking for a place in bustling Chicago, or a peaceful home in a more quiet and rural area, this guide from Pete Buys Homes will walk you through the entire home-buying process.
Why Illinois is a Great Place to Buy Houses
Illinois is a true gem when it comes to its diverse city landscapes. The state offers something for everyone. It has the vibrant streets of Chicago and charming suburban towns like Naperville and Schaumburg.
Affordable Housing
One of the biggest draws of Illinois is its affordable housing market. Many areas in the state have budget-friendly home prices, with home prices averaging around $265,000. Much less compared to the soaring costs found in other states. Surely, you'll find a range of options that won't break the bank.
Job Opportunities
Illinois has a great job market with strong industries in finance, technology, and healthcare. Major companies and startups are calling this state home. This paves the way to providing job opportunities for both professionals and newcomers. This dynamic economy ensures that residents have the chance to thrive and achieve their career goals.
Great Schools
Education is a priority in Illinois, with a variety of top-notch public schools and esteemed universities. Families can feel confident about their children’s education, as the state is dedicated to providing quality schooling and a range of educational programs, ensuring a bright future for young residents.
Beautiful Seasons
One of the most charming aspects of living in Illinois is the chance to embrace beautiful seasons.
Residents enjoy sunny summers perfect for outdoor activities, vibrant autumns with stunning foliage, cozy winters filled with snow, and refreshing springs that breathe life back into the landscape.
Each season brings its own unique charm, making life in Illinois a rich and varied experience.
Steps in Buying a House in Illinois
Step 1: Check Your Finances
Let's be real - buying a house in Illinois is probably one of the biggest financial decisions you'll ever make. Start by checking your credit score. The better your score, the better your loan options.
Tip: Aim for a credit score of 620 or higher for a decent mortgage rate. If your score needs improvement, work on paying off debts and making timely payments.
Create a Budget
- Down payment - Save at least 3-5% of the house price, though 20% can help avoid mortgage insurance.
- Monthly Payments - Include mortgage, insurance, property taxes, and maintenance costs in your budget.
Step 2: Get Pre-Approved for a Mortgage
Getting pre-approved is like getting a "golden ticket" in the home-buying process. It shows sellers that you're serious and you know your budget.
What You'll Need:
- Proof of income: (pay stubs, tax returns)
- Employment History
- Credit score and debt information
A piece of friendly advice — you need to compare different lenders to find the best mortgage rate. Even a small difference can save you thousands over time.
Step 3: Find a Local Real Estate Agent
Sure, you can house-hunt online, but having a real estate agent is like having a tour guide who knows all the best spots.
When you start looking for homes, your real estate agent will help you find options that match what you like and what you can afford. They will also negotiate offers for you to ensure you get the best deal possible on your new home.
Plus, they will handle all the paperwork, making sure everything is done correctly and keeping the legal terms easy to understand. Who really enjoys dealing with legal stuff anyway? Your agent is there to make the process smoother for you.
But be wise in choosing your real estate agent. Look for someone familiar with your preferred area. A great agent can make the process smoother and less stressful.
Step 4: Choose the Right Neighborhood
Illinois has so many unique neighborhoods and towns to explore! Visit a few areas to see what fits your lifestyle.
Chicago — It's the third-largest city in the United States with rich cultural heritage and vast economic opportunities. Chicago's housing market offers a wealth of opportunities for buyers.
Whether you're a first-time buyer or looking to relocate, Chicago’s neighborhoods await diverse options for every lifestyle.
Naperville — is one of the most desirable suburbs in the Chicago metropolitan area. It is known for its vibrant community atmosphere. Having a population of approximately 150,000, residents enjoy a strong sense of belonging.
Plus there are numerous community events throughout the year. Moreover, many like Naperville for its highly-rated school districts known for their academic excellence, making it an ideal location for families with children.
Location-wise, with its proximity to major highways and metro train services, commuting from Naperville to Chicago and other parts of the Chicago area is convenient. This makes Naperville an ideal location for professionals who work in the city but prefer the suburban lifestyle.
Schaumburg — is known as a major business hub in the northwest suburbs of Chicago. The presence of numerous Fortune 500 companies, including Motorola Solutions and Zurich North America, provides abundant job opportunities in a variety of sectors.
Additionally, Schaumburg is rich in cultural and entertainment options, including theaters, museums, and concert venues.
The Renaissance Schaumburg Convention Center and the Schaumburg Boomers baseball team provide many entertainment choices, so there’s always something to do.
Schaumburg also prides itself on its community involvement and volunteer opportunities. Residents can participate in local government, community events, and social programs, creating a sense of ownership and investment in the area.
Step 5: Start House Hunting
Now comes the fun part - finding your dream home! Make a list of "must-haves" and "nice-to-haves."
Here's a sample of a House-Hunting Checklist:
- Number of bedrooms and bathrooms
- Kitchen size and layout
- Backyard space
- Nearby schools and parks
- Condition of the house (for potential repairs)
Keep in mind - don't fall in love with the first house you see. Tour several homes first before setting up your mind, and compare their features and prices for a much better option.
Step 6: Closing the Deal
Closing the deal on a house can feel overwhelming because it requires signing many documents and paperwork. Here’s how to make the process smoother:
Take a Close Look at the Final Contract
First, it’s really important to take a close look at the Final Contract. This document outlines all the details of your agreement, so read it thoroughly.
If there’s anything you find confusing or unclear, don’t hesitate to ask your real estate agent or lawyer for clarification. They're there to help you understand everything.
Be Aware of the Closing Costs
Closing usually comes with additional costs, often referred to as closing costs. These can include fees for processing the mortgage, title insurance, and property taxes, among others. Make sure you have the necessary funds set aside to cover these expenses.
On the day of the closing, don't forget to bring a few important items. Make sure to have a valid ID with you, like a driver’s license or passport, as you’ll need it for identification purposes. It’s also wise to bring your checkbook in case you have to make any necessary payments at that time.
Bring a Friend
Lastly, consider bringing along a trusted friend or family member for support. Having someone there can make you feel more comfortable during this important step in buying your new home.
Start Your Home - You Got This!
Buying a house in Illinois might seem overwhelming. But with our tried-and-true guide, you're already ahead of the game. Remember to take things step by step, lean on a trusted real estate agent, and trust the process.
Soon enough, you'll be unlocking the door to your dream home in the Land of Lincoln. Contact us if you have any more questions not covered in this article!