Chicagoland Home Buyers FAQ: Your Most Asked Buying Questions, Answered

Whether this is your first home or your fourth, buying comes with a lot of questions, and most of them do not have a simple yes or no answer. Below are the ones I hear most often from buyers across the city and suburbs, answered honestly and without the sales pitch.

If you do not see what you are looking for, reach out directly. I am always happy to talk through your specific situation.

How much do I actually need for a down payment?

Less than most people think. Conventional loans can go as low as 3 to 5 percent down depending on the program, and there are options built specifically for first-time buyers. The bigger question is not how little you can put down, it is how much you are comfortable putting down once you look at the whole picture, including your monthly payment, your reserves, and what you want left in savings after closing. I walk every buyer through that math before we start touring homes.

What is earnest money, and how much should I offer?

Earnest money is a deposit you put down when your offer is accepted, showing the seller you are serious. It gets applied toward your down payment or closing costs at closing. In Chicago, it is typically 1 to 5 percent of the purchase price, and the right number depends on how competitive the property is. In a multiple offer situation, a stronger earnest money deposit can help your offer stand out. It is not extra money, it is money you are already putting toward the purchase, just committed earlier.

Do I have to sign a buyer's agreement before I start touring homes?

Yes, and this is newer than a lot of buyers realize. Since the industry-wide changes in 2024, buyers are required to sign a written agreement with their agent before touring homes. It spells out how I am compensated and what I am obligated to do for you. I know it can feel like one more form, but it actually protects you. It puts my responsibility to you in writing and makes sure you know exactly what you are agreeing to before we ever walk into a showing.

How does the home inspection actually work?

You hire a licensed inspector, usually within a few days of going under contract, and they spend two to four hours going through the property from the roof to the foundation. You are encouraged to attend. I always recommend it, because hearing an inspector explain something in person is worth more than reading it in a forty page report later. The inspection is not pass or fail. It is information. It tells you what you are actually buying, not just what you saw on a showing.

What happens if the inspection finds a problem?

You have options, and none of them are automatic. You can ask the seller to make repairs, ask for a credit toward closing costs, renegotiate the price, or walk away, depending on what your contract allows and how serious the issue is. Most inspections turn up something. The question is never whether an old house has flaws, it is whether the flaws are normal wear or something that changes your decision. I help you tell the difference so you are not walking away from a good house over a minor issue, or ignoring something that should genuinely change your offer.

What closing costs should I expect as a buyer?

Plan on roughly 2 to 5 percent of the purchase price, covering things like lender fees, title insurance, attorney fees, prepaid property taxes, and homeowners insurance. Your lender will give you a Loan Estimate early in the process and a Closing Disclosure a few days before closing, and I go through both with buyers so there are no surprises on closing day. The number people forget to budget for is usually the prepaid taxes and insurance, not the fees themselves.

How long does it take from offer to closing?

Chicagoland homebuyers getting the keys on closing day

Typically 30 to 45 days once an offer is accepted, though cash purchases can move faster. That window covers the inspection, the appraisal, and full loan underwriting. It can feel slow in the middle when nothing seems to be happening, but there is a lot going on behind the scenes with your lender. I keep buyers updated at each stage so the waiting does not feel like the unknown.

What happens if my financing falls through after we are under contract?

If your contract includes a financing contingency, and it should, you are protected. It allows you to cancel the contract and get your earnest money back if you cannot secure your loan despite acting in good faith. This is exactly why working with a strong, responsive lender matters as much as finding the right house. I only refer lenders I trust to communicate early if something is at risk, not the week before closing.

How many homes should I see before making an offer?

There is no magic number. Some buyers know within three showings. Others need fifteen to understand what they actually want, which is often different from what they thought they wanted on paper. What matters more than the count is whether each showing is teaching you something, about a neighborhood, a layout, a trade-off you did not expect to care about. I would rather you see one more house than make an offer you are not sure about.

Have a question that is not here? Reach out directly at staci.yesner@compass.com or 773.251.6103. I am always happy to talk.