First-Time Home Buyer Checklist
Your step-by-step guide to buying your first home in Chicago.
Buying a home for the first time is exciting. It's also overwhelming—there are a lot of moving parts.
This checklist walks you through every step, from "Can I even get a mortgage?" to "When do I sign the papers?" Let's do this.
BEFORE YOU START
Get Your Credit in Check
Target: Credit score of 620+ (better if 740+)
✓ Pull your credit report (annualcreditreport.com — it's free)
✓ Check for errors (and dispute if needed)
✓ Pay down high credit card balances
✓ Don't open new credit accounts (looks risky to lenders)
Why it matters: Better credit = lower interest rates = save $10k+ over the life of the loan.
Save for Down Payment
Target: 3–20% of purchase price
For a $400k home:
• 3% down: $12,000 (FHA loan)
• 10% down: $40,000 (conventional loan)
• 20% down: $80,000 (no PMI)
Pro tip: First-time buyers often qualify for FHA loans (lower down payment).
Get Pre-Approved
What it means: A lender says "Yes, we'll give you up to $X for a mortgage."
What you need:
• Pay stubs (proof of income)
• 2 months bank statements
• Tax returns (last 2 years)
• Employment history
Why it matters: Pre-approval shows sellers you're serious. Locks in your rate for 30–60 days.
Know Your Budget
Simple formula: Take home pay per month × 0.28 = max monthly mortgage payment
Example:
• Annual income: $80,000
• Monthly take-home: ~$5,300
• Max mortgage payment: ~$1,480/month
This includes: principal + interest + taxes + insurance.
DURING YOUR SEARCH
Find the Right Neighborhoods
✓ Commute to work (how many minutes?)
✓ Schools (if relevant)
✓ Walkability (coffee shops, restaurants, parks?)
✓ Crime rate (is it safe?)
✓ Future appreciation (where is the neighborhood heading?)
Browse the MLS
What to look for:
✓ Price per square foot (benchmark against comps)
✓ Days on market (how long has it been listed?)
✓ Recent price drops (seller getting desperate?)
Get a Home Inspector
Cost: $300–$500
Why: A home inspection catches problems before you buy.
What they check:
✓ Foundation & structure
✓ Roof condition
✓ Electrical & plumbing
✓ HVAC system
✓ Water damage / mold
Pro tip: Go to the inspection. Ask questions. Learn your house.
TIMELINE: OFFER TO CLOSING
| Make offer | Day 1 |
| Offer accepted | Day 1-3 |
| Earnest money deposited | Day 3-5 |
| Home inspection | Day 5-10 |
| Get appraisal | Day 10-20 |
| Title search | Day 20-30 |
| Final walkthrough | Day 40-43 |
| Closing | Day 45 |
CLOSING COSTS: WHAT YOU'LL PAY
Typical closing costs: 2–5% of purchase price
For a $400k home: $8,000–$20,000
✓ Loan origination fee: 0.5–1% of loan amount
✓ Appraisal: $400–$600
✓ Title insurance: $300–$500
✓ Home inspection: $300–$500
✓ Homeowners insurance (1 year): $800–$1,500
✓ Property taxes (prorated): varies by area
✓ HOA transfer fee (if condo): $100–$300
COMMON FIRST-TIME BUYER MISTAKES
❌ Maxing out your budget
Just because you qualify for $400k doesn't mean you should spend $400k. Leave breathing room.
❌ Making big purchases before closing
Don't buy a car or furniture before closing. Lenders check your credit again. New debt can kill your loan.
❌ Skipping home inspection to "save money"
Skipping inspection to save $400 can cost you $20,000 in hidden repairs.
❌ Not getting pre-approved
Offers without pre-approval don't get taken seriously.
❌ Assuming appraisal will match offer price
Sometimes homes don't appraise. Have a backup plan.
Ready to Start Your Home Search?
Let's find you the right property at the right price.
Schedule Your ConsultationHave questions? Call me directly at (773) 949-4374 or reply to this email.