Buying your first home is a big milestone, especially in today’s market (don’t fall for these common myths). With so many steps in the home buying process, it’s easy to feel overwhelmed.
The right support, especially from a real estate agent experienced with first-time homebuyers in Chicago, can make the journey less stressful and a lot more rewarding.
While this may be new to you, experienced agents have helped many first-time buyers and understand the common worries, like affordability, down payment concerns, and the fear of making mistakes.
Here are some real-world tips based on helping others through the Chicago first home journey.
Tip #1: Get Pre-Approved First
Getting pre-approved for your home loan is the first step every first-time homebuyer should take. As Rocket Mortgage points out, it’s a common mistake to browse homes before knowing your budget—especially in the Chicago real estatemarket.
Avoid the frustration of falling in love with homes outside your reach by talking to a lender and an agent early. Pre-approval will give you a realistic sense of what you can afford, so you can focus your home search on properties that truly fit your budget.
Tip #2: Set a Budget and Stick To It
Just because a lender says you can borrow a certain amount doesn’t mean you should spend it all, especially as a first-time buyer in Chicago.
With additional costs like home insurance, property taxes, and homeowners association (HOA) fees (if you’re considering a condo or townhouse), the budget for your home purchase should account for more than just the sales price.
Ask your agent about down payment assistance programs and ways to make homeownership more affordable.
Bankrate offers this advice:
“When you’re building a budget to narrow your search for properties, don’t just think about how much house you can afford, but how much in recurring costs you can handle once you’ve purchased your home.”
Tip #3: Don’t Skip the Inspection
When you find the right home, it’s easy to get caught up in the excitement. But skipping the inspection just to make your offer look stronger is a gamble that could cost you.
Instead, work with your agent to schedule a real inspection. They’ll connect you with local pros, make sure it’s booked, and help you understand the results so you can negotiate repairs or ask for money off at closing, if needed.
It’s better to invest in this time up front to avoid what could be thousands in surprise repairs later.
Tip #4: Your First Home Doesn’t Have To Be Your Forever Home
Remember, your starter home doesn’t have to be your forever home.
Many first-time buyers in Chicago start with a condo, townhouse, or smaller single-family home, then move up as their needs and equity grow.
The goal is to start building equity and gain experience with homeownership—you can always upgrade later.
When that time comes, check out these tips to prep for your home sale.
An agent will help you explore all your options, including ones you may not have thought about. For example, a well-kept condo, a townhouse in a great location, or a house with good bones can be a perfect first step into homeownership.
The goal? Get in. Start building equity. Then, grow from there.
Ready to Start Your Homebuying Journey?
Buying your first place is a big step, but it doesn’t have to feel like a step in the dark. Let’s talk about where you’re starting, what’s stressing you out (or holding you back), and what you actually need to know to make it happen.
Have questions about affordability, down payment assistance, or how to get started? Reach out to our realtors for guidance tailored to first-time buyers.