5 Huge Mistakes First-time Home Buyers Make in Chicago

Buying your first home in Chicago? Save time and money by avoiding these 5 common pitfalls plaguing real estate rookies.

Ready, Set, Chicago

Make your first home buying experience easy with advice from top-rated Chicago real estate agents.

Mistake #1:
Forgetting to Budget

The spring home-buying season is underway here in Chicago, and that means more opportunities to get into the real estate market for budding homeowners. As mentioned in our review of Chicago’s 2023 and 2024 Q1 housing market, home prices are holding steady with Chicago real estate at its most affordable point in over two years. With housing supply and cost of living holding steady, economists expect housing affordability to continue improving throughout the rest of 2024.

But before you buy, do you know how much house you can afford right now?

Forgetting to budget can mean wasting time on homes that are too expensive, or too cheap, to meet your needs. Take some time to create a price range for your first home, putting your finances and future life goals into account. If you’re looking to get mortgages or home loans to help with financing, you may want to aim low to keep your monthly payments in check too. Use a mortgage affordability calculator to quickly estimate the ideal price range for your situation.

Mistake #2:
Ignoring Costs, Big or Small

There’s more to buying a home than just the asking price, and first-time home buyers can sometimes be caught off guard by that fact. Every home comes with necessary repairs or renovations, and even the most well-maintained properties will give you plenty of “welcome to home ownership” moments.

Will you be able to afford a new set of furniture? A fresh coat of paint for the living room? How much have you set aside for moving your things when the time comes? Keep big costs in mind when budgeting and take stock of Chicago’s overall cost of living so that you’re ready for anything. 

Not sure you can fit surprise repairs into your budget? Condos give you the full homeowning experience while saving time and money on repairs, and the market for them is booming in Chicago right now. For an affordable and hands-free path into the Chicago real estate market, talk to a top-rated real estate agent today.

Mistake #3:
Not Getting Advice

Buying your first home is a learning process, and there’s no need to do it all on your own! Talk to your agent, inspector, or friends and family who have bought a home in the past. They can provide personal experiences and insights to ensure that you’re prepared to buy a home.

Mistake #4:
Waiting for a Unicorn

Hunt Houses, not Unicorns…

There isn’t just one house you’ll be happy in. Work with your agents to find the best fit for your needs and budget.

Your first home should be a good one, but that doesn’t mean it needs to be perfect. Chicago is an historic city, and that means a little wear and tear is normal. Talk with your real estate agent and inspector if you have concerns and determine with them whether each issue is a dealbreaker or not.

Most importantly, get your foot in the door as soon as you’re ready. Waiting now could mean higher rates in the future, and there’s no better time to start learning real estate than today.

Mistake #5:
Hurting Your Credit

Getting a mortgage requires good credit, and sudden changes can put that credit at risk in the final days before buying your first home. Keep your credit score clean by avoiding any new loans, credit cards, debt payments, or hefty charges to the credit cards you already have.

This will get you the best possible interest rates from your lender, and avoid any delays or cancellations to your mortgage too. Be especially careful in the last week before closing, as lenders will often double-check your score and may penalize a drop with higher interest or added fees.

Have more burning questions about buying your first home in Chicago? Talk to our real estate experts today and make your dream house a reality.