Chicago attracts buyers nationwide with its robust job market and rich cultural scene. With over 6,000 homes for sale in Chicago, you have plenty of options. But you must get preapproved, check neighborhoods, and attend open houses.
With Houzeo, Chicago’s best home buying website, managing your home search is simple. You can look through the latest listings in the Windy City, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Chicago home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property. Also, choose the best neighborhoods to buy a house in Chicago.
- Set aside 30–45 days for mortgage pre-approval. Aim for a credit score of 620+ to stay competitive in Chicago’s fast-moving market.
- Explore FHA, VA, or USDA loans, and apply for state programs like Illinois Housing Development Authority (IHDA) Access Mortgage Program.
- Use platforms like Houzeo to search Chicago homes by city, price, or must-have features like pools, waterfront access, or parking.
- Schedule inspections for the roof, HVAC, and plumbing. Assess for heating efficiency (critical in Chicago winters), older electrical systems, and potential water seepage in basements.
- Expect 2%–5% in closing costs. After purchase, file for the Cook County Homeowner Exemption to reduce your property taxes.
7 Steps for Buying a Home in Chicago, IL🏙️
Buying a house in Chicago doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Hyde Park, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Chicago is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: Choose places that fit your lifestyle, whether it’s an urban neighborhood like River North or a quiet suburb like Beverly. For investment properties, consider homes for sale in Logan Square, where tourism drives demand.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends, such as like Lincoln Park or South Loop. You can check out homes for sale in Avondale or Uptown, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Mount Greenwood. But if you prefer something easier to manage, condos in places like downtown Chicago can be a smart option. However, they often have smaller lots.
Calculate the cost of living in Chicago to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you want a home in an expensive region like West Loop or Gold Coast.
- Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential HOA fees, particularly near the Chicago River or low-lying areas.
👉 Use an Illinois mortgage calculator to estimate how much property you can afford in the Prairie State.
2. Explore Loans and Assistance Programs
Down payments in Chicago usually range between 10% and 20%, but vary based on the financing option you choose. You can look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
|---|---|
| FHA Loans | Require just 3.5% down and are ideal for a first time home buyer. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| IHDA Access Mortgage Program | Offered by the Illinois Housing Development Authority (IHDA), this program provides up to $6,000 in down payment assistance (repayable over 10 years) for qualifying buyers. |
| IHDA Opening Doors (Opening Doors DPA) | Provides $6,000 in forgivable down payment assistance for first-time and repeat buyers. Forgiven after 5 years if you remain in the home. |
| Cook County & City of Chicago Home Buyer Assistance Program | Offers grants or forgivable loans to help with down payment and closing costs, targeted to low- and moderate-income buyers purchasing within Chicago. |
Step 3: Get Pre-Approved for a Mortgage
The Chicago housing market in 2025 is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better, and reduces delays in the transaction.
Shop around to find the best Chicago mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the Chicago Market
Whether you’re looking at houses for sale in Wicker Park or anywhere else in the Windy City, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Hoopeston is the nicest and cheapest place to live in Illinois. The number of homes for sale in Hoopeston is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Chicago’s competitive housing market, homes tend to sell fast. Focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like the Gold Coast, you might need to offer above the asking price to stand out.
- Down Payment: In Chicago, down payments usually range from 3% to 20%. In competitive markets like Lakeview or Wicker Park, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like South Loop or Bucktown, where homes can go fast.
- Contingencies: Include protections like home inspection and wind mitigation contingencies.
- Concessions: Request the seller to cover some closing costs. It’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24- to 72-hour deadline to encourage a prompt reply. This prevents delays and keeps you on track for Illinois’ average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Illinois should cover:
- HVAC System: Make sure the air conditioning can handle Chicago’s hot, humid summers, and the heating is reliable for the city’s harsh winters.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in homes built before the 1980s. Cold winters can cause frozen or burst pipes, so proper insulation and updated plumbing are key.
- Electrical System: Verify everything is up to code and can withstand storm-related power surges.
- Roof Condition: Assess for storm damage, missing shingles, or age-related wear.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, especially in neighborhoods with older housing stock and clay-based soil.
If you’re browsing homes for sale in Chicago or elsewhere, ensure that you get a wind mitigation inspection for all risks. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Chicago Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for Cook County’s Homeowner Exemption to reduce your property taxes.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through the City of Chicago Department of Water Management. And don’t forget pest control, especially in humid areas, where bugs are active year-round.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed due to the city’s heavy rains.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae build-up. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Chicago Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Chicago?
Absolutely! Chicago offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Illinois.
Whether you’re drawn to Chicago’s thriving job market or its vibrant lakefront neighborhoods, the Windy City has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Illinois!
