UPDATED: Jul 10, 2023
Whether you’re new to Illinois, have lived there your entire life, or something in between, you might find yourself thinking of buying a house there. Anyone who has bought a house knows that it’s no small feat, but planning and preparation can make the process go a lot more smoothly.
Before buying a house in Illinois, be sure to get to know the state itself, along with its pros and cons. And familiarize yourself with the local real estate market and home buying process to make your home search a breeze.
When you’re deciding where to live –whether it be Illinois or anywhere else – it’s worth doing your research ahead of time to learn about its demographics and statistics. Here are some important factors about Illinois:
Illinois has a low cost of living compared to most states and is home to at least one of the most affordable cities in America.
According to data from the Missouri Economic Research and Information Center, the cost of living in Illinois is about 92.6% of the national average. In other words, for every dollar the average American must spend, Illinoisians must spend just 92.6 cents.
While people in Illinois pay more than the national average for transportation, they pay less everywhere else. A notable category where people in Illinois pay less is housing, where they pay just 82% of the national average.
Depending on your career, Illinois can be an excellent place to find job opportunities. The state has the fifth-highest GDP in the United States and is home to 34 Fortune 500 companies. Major industries in the state include:
It is worth noting, however, that Illinois’ unemployment rate is slightly higher than the national average – it’s 4.2% in Illinois compared to 3.4% nationwide. The good news is that Illinois’ unemployment rate has been steadily declining over the past couple of years.
Located in the Midwest, Illinois can experience some extreme weather. Winters tend to be very cold, with average lows in the teens and 20s and average highs in the 30s and 40s. Meanwhile, summers can be moderate to warm, with average lows in the 60s and average highs in the 80s.
The state gets between 32 and 48 inches of precipitation, depending on where in the state you are. The Chicago area tends to get a high amount of snowfall because of its proximity to Lake Michigan.
For some people, the four distinct seasons that Illinois experiences will be welcome. But if you prefer warm weather and feel you’ll struggle through several months of cold winter, Illinois may not be the place for you.
Before buying a house in Illinois, there are some things you’ll want to know, including your costs and requirements.
As you prepare to buy a home in Illinois, it’s important to know what requirements you’ll be subject to. Here’s what you’ll need to buy a house:
If you’re considering buying a house in Illinois, here are the steps you’ll want to follow.
Before shopping around for homes, narrow down what part of Illinois you plan to move to. And even once you’ve decided on a city or region within the state, you’ll still need to choose a neighborhood. Consider the school district, nearby amenities and other factors.
The home buying process will go the most smoothly if you’re able to save for your down payment and closing costs upfront. You won’t have to worry about scrambling for last-minute cash before closing and can feel confident you’ll be financially prepared for your big move.
There are many different types of mortgages to choose from, each of which is best suited for certain borrowers. Here are some of the most common mortgage options:
As we mentioned, you’ll want to be preapproved for a mortgage before you start seriously shopping for a home. That way, when you do find the perfect house, you’ll be prepared to move on it right away. Getting preapproved upfront also helps you avoid shopping for homes outside of your budget.
While not 100% necessary, it’s best to hire a real estate agent when buying a house in Illinois. Not only will an agent know all the ins and outs of the home buying process, but they’ll also be familiar with the area and the local real estate market.
Once you’ve gotten preapproved and have found a real estate agent, you can start house hunting. Make sure to identify your budget and your list of must-haves to better help your agent to narrow down the options and find the perfect home for you.
Once you’ve found a house you’d like to buy, your agent will walk you through the process of making an offer. Given the competitive real estate market of the past several years, you may want to move quickly if you find the perfect home.
The home inspection and appraisal are critical to the home buying process. The inspection allows you to find out if there’s anything wrong with the house that could be costly to fix. And the appraisal helps your mortgage lender ensure they’re lending an appropriate amount given the house’s value.
Once you’ve completed all the steps above, there’s nothing left to do but close on your new home. You’ll need to bring a check to the closing for the down payment and closing costs. And in return, you’ll walk away with the keys to your new home.
There are many places in Illinois that would be great to call home for you and your family. Here are some places you may want to consider if you haven’t settled on a location yet:
Springfield is home to roughly 113,000 people. It sits roughly in the middle of Illinois and serves as the state capital. The median home price in Springfield is well below the state and national average – the median sold price is $145,224. Homes are selling for about 6% more than they were one year ago. The real estate market in Springfield is currently a seller’s market.
If you’re considering a move to Springfield, check out homes for sale in Springfield, IL and Springfield, IL housing market trends.
Buffalo Grove is a medium-sized village in Illinois that’s home to about 42,500 people. It’s a suburb of Chicago in the northeastern part of the state. The median home price in Buffalo Grove is $355,428, which is higher than the state’s median sold price. It’s a seller’s market and homes are selling for about 9.4% more than they were a year ago.
If you’re considering a move to Buffalo Grove, check out homes for sale in Buffalo Grove, IL and Buffalo Grove, IL housing market trends.
Naperville is another suburb of Chicago and sits southwest of the city. It’s home to roughly 150,000 people and has a median household income that’s nearly double the state’s median. Housing in Naperville is quite expensive compared to the rest of the state – the median home price is $502,513 and it's a seller’s market.
If you’re considering a move to Naperville, check out homes for sale in Naperville, IL and Naperville, IL housing market trends.
Glenview is another Chicago suburb that sits north of the city and is home to about 47,000 people. Glenview has the most expensive housing of any city on our list. The median home price is about $580,000. And while it’s still a seller’s market, housing prices have actually declined in the past year.
If you’re considering a move to Glenview, check out homes for sale in Glenview, IL and Glenview, IL housing market trends.
Are you planning on buying a house in Illinois? Whether you already live in the state or are moving there, there are a few additional things you’ll want to know.
As we mentioned in the previous section, current real estate market trends show that housing prices in many areas of Illinois are still increasing, and cities are experiencing sellers’ markets. Additionally, interest rates in 2023 are higher than they have been. However, it may still be the right time for you to buy a house if it fits with your financial situation and goals.
Illinois has several programs to make homeownership more accessible. Most of its programs are available to both first-time and non-first-time home buyers and help pay for down payments and closing costs.
When it comes to how much money you need to buy a house, the answer may be different for everyone. Your out-of-pocket costs will depend on the price of the house you buy, the type of mortgage you get, whether you qualify for any buyer assistance programs and more.
Buying a house is a major accomplishment, but it’s one that takes a lot of hard work and planning. If you’re buying a house in Illinois, you’re now equipped with all the information you need to get started. And if you’re ready to start shopping for your next home, start the mortgage approval process today and find out how much you can borrow.
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