Thinking about buying a home in Chicago but not sure where to start? You are not alone. Between financing, attorney review, inspections, and city transfer paperwork, the process can feel complex. This guide breaks down each step, local timelines, typical costs, and what to watch for in Chicago and nearby south suburbs so you can move forward with confidence. Let’s dive in.
Chicago home buying timeline at a glance
- Pre-approval and financing prep: 1 day to 2 weeks
- House hunting and tours: 1 week to several months
- Offer and contract acceptance: 1 to 7 days
- Attorney review and inspections: 7 to 21 days
- Appraisal and underwriting: 2 to 4 weeks
- Closing and recording: 1 day to sign; recording may take longer
Most financed buyers in the Chicago area close in about 30 to 45 days after the offer is accepted. Cash deals can be faster, often 7 to 21 days. Cook County title searches, HOA/condo document review, and municipal transfer procedures can extend timing, especially with older properties or condo approvals.
Step 1: Get pre-approved in Illinois
A full pre-approval carries more weight than a quick pre-qualification. Your lender will review pay stubs, W‑2s, bank statements, and credit. Aim to get this done before touring so you can move quickly when you find the right home.
Common loan options include conventional fixed or adjustable-rate mortgages, FHA, VA, and select state or city programs. Many Chicago buyers explore down payment assistance or favorable-rate products through state housing programs. Eligibility can depend on income, purchase price, and other factors, so verify current requirements with your lender.
If you are buying a condo, your lender may need to approve the condo project, review the association’s financials, and confirm reserve levels. This can affect underwriting time, so build that into your timeline.
Step 2: Search and tour in Chicago and the south suburbs
Your search strategy should match your budget, timing, and commute needs. In competitive neighborhoods, homes can receive multiple offers. A strong pre-approval letter, quick scheduling, and a clear offer plan help you compete without overreaching.
As you tour, note condition, age of major systems, and any signs of deferred maintenance. Older properties in Chicago often deserve a closer look at structure, mechanicals, and potential code or permit history.
Step 3: Make a winning offer
Price matters, but so do terms. Your offer typically includes:
- Earnest money deposit
- Inspection and attorney review deadlines
- Financing contingency length
- Appraisal and possession terms
- Who pays which closing costs
Earnest money custom varies. In many cases buyers put 1 to 3 percent of the price into escrow, though lower or higher amounts occur depending on price point and competition. Your contract will spell out when earnest money is refundable during contingencies and when it is at risk if you default.
Step 4: Attorney review and inspections
In Illinois, buyers commonly hire a real estate attorney to review the contract and manage closing documents. Local agents often use standard contract forms that set key deadlines for inspection, financing, and appraisal.
Most buyers schedule a general home inspection soon after acceptance. The typical inspection window is about 7 to 10 days, but your contract controls the exact timing. Consider pest, radon, roof, structural, or mechanical inspections as needed, especially for older homes. Sellers must disclose known defects, and there is a required lead paint disclosure for homes built before 1978.
If inspections uncover issues, you can negotiate repairs, credits, or a price adjustment within the review period. Your attorney and agent will guide the strategy and paperwork.
Step 5: Appraisal and final underwriting
Your lender will order an appraisal to confirm value. If the appraisal comes in low, you can try to renegotiate the price, bring additional funds, or exercise any appraisal-related contingency to exit without penalty, depending on your contract.
While underwriting is in process, avoid major financial changes. Do not open new credit lines, switch jobs without notifying your lender, or make large unexplained deposits. Respond quickly to any lender requests for documents or clarifications.
Step 6: Closing and recording in Cook County
Before closing, you will receive a Closing Disclosure at least 3 business days in advance. On closing day, you will review and sign the deed of trust or mortgage, note, affidavits, and title insurance documents. In Illinois, it is common for buyers and sellers to attend with their attorneys, and agents may also be present.
After funds disburse and documents are signed, the deed is recorded with the Cook County Clerk. Recording times can vary by volume and municipal steps. You typically receive keys after closing per the possession terms in your contract.
What it costs to buy in Chicago
Closing costs often total about 2 to 5 percent of the purchase price, not including your down payment. Your exact amount depends on loan type, negotiated credits, taxes, and fees. Typical buyer costs include:
- Lender fees, appraisal, credit report, and flood certification
- Title search and lender’s title insurance policy
- Recording fees, transfer taxes, and escrow fees
- Attorney fees if you use an attorney
- Prepaid items like property tax prorations, mortgage interest, and homeowners insurance
Transfer taxes in Chicago and Cook County
There can be multiple layers of transfer taxes, including state, county, and City of Chicago. Who pays which tax can be a matter of local custom and contract negotiation. Rates and practices change, so verify the current amounts and obligations with your attorney, title company, or lender, and review the purchase contract carefully.
Property taxes and exemptions
Cook County property taxes are based on assessed value, with assessments managed by the Cook County Assessor and collected by the Treasurer. At closing, taxes are prorated based on the time each party owned the property. After you buy, you may qualify for exemptions such as a homestead exemption. Check official county resources for eligibility and filing deadlines.
Condo and HOA costs
Many Chicago properties include monthly condo or HOA assessments. Lenders review the association’s financials and rules during underwriting. Expect fees for document production and review, and know that some lenders may require higher reserves if the association has limited savings or ongoing maintenance needs.
Local risks and what to inspect
- Structure and systems: Many Chicago homes are older. Pay attention to foundations, porches, roofs, electrical, plumbing, and heating systems like boilers or steam heat.
- Lead-based paint: For homes built before 1978, review the required disclosure and consider testing or abatement guidance.
- Flooding and basements: Some areas near waterways or with high water tables face higher risk of water intrusion. Ask about past water events and evaluate the need for additional coverage.
- Permits and code compliance: Older renovations may have incomplete permit histories. Verify that major work was permitted and closed out.
- Condo association health: Look for signs of deferred maintenance, pending special assessments, or litigation that may affect finances and insurability.
Your buyer document checklist
Have these ready for pre-approval and underwriting:
- Government-issued photo ID
- Social Security number for credit check
- Recent pay stubs for about 30 days
- W-2s for 1 to 2 years and tax returns if self-employed
- Bank and investment statements for 60 to 90 days
- Gift letters if any funds are gifted
- A list of monthly debts and obligations
Sample contract-to-close timeline
- Day 0: Offer accepted and contract executed
- Days 1 to 3: Deposit earnest money and schedule inspections
- Days 7 to 10: Inspection results due; negotiate repairs or credits
- Days 7 to 21: Appraisal ordered; lender underwriting continues
- Day 30 to 45: Closing for financed buyers, sooner for cash if documents are ready
Tips for condos and small multi-units
- Budget time for condo document review. Your attorney will want the declaration, bylaws, budget, reserves, and meeting minutes.
- Ask about planned special assessments and recent capital projects.
- Confirm insurance requirements and any rental restrictions that affect future plans.
- For 2 to 4 unit properties, ensure separate utilities are documented and verify zoning and permit history for any conversions.
How to move forward with confidence
Buying in Chicago and the south suburbs is very doable when you know the steps and set realistic expectations. Get pre-approved, plan your offer strategy, use the attorney review and inspection window wisely, and keep communication tight with your lender and title team. A disciplined approach protects your money and helps you close on time.
If you want a neighborhood-savvy partner who will guide you from first tour to keys with a clear plan, connect with Tina Hollins. You will get local expertise, a negotiation-first mindset, and a calm, step-by-step process that keeps you in control.
FAQs
Do I need a real estate attorney for a Chicago home purchase?
- It is not legally required in all cases, but attorney involvement is common in Illinois for contract review and closing documents, and most buyers hire one.
How long does it take to close on a home in Chicago?
- Most financed deals close in about 30 to 45 days after acceptance; cash buyers often close in 7 to 21 days, with condos or municipal steps sometimes adding time.
Who pays transfer taxes in Chicago and Cook County?
- There are state, county, and City of Chicago transfer taxes; who pays depends on local custom and your contract, so verify current practice with your attorney and title company.
How much earnest money should I expect to provide?
- Custom varies; common practice ranges from a nominal amount to roughly 1 to 3 percent of the purchase price, with exact terms set in your purchase contract.
Are there down payment assistance options for Chicago buyers?
- Yes, state and local programs may offer down payment help or favorable-rate loans, but eligibility and funding change, so review current options with your lender or a housing counselor.
