Buying a home is one of the largest financial decisions you'll make. Knowing the legal steps makes the process easier and helps you avoid costly mistakes. For the full sequence, see the Chicago closing timeline.

Step 1: Get pre-approved for a mortgage

Pre-approval clarifies your budget and shows sellers you're serious. Lenders look at your credit, income and debt. Compare several lenders; small differences in rate and fees add up over the life of a loan.

Step 2: Choose your team

A real estate agent who knows the neighborhoods you're considering can guide your search and offers. Line up your real estate attorney at the same time, before your offer is accepted.

Step 3: Review the purchase contract

Most Chicago-area home sales use the Multi-Board Residential Real Estate Contract. Once your offer is accepted, the attorney review period is five business days. That's when your attorney can clarify dates, credits, fixtures and contingencies.

Step 4: Complete the home inspection

A professional inspection checks for structural issues, safety hazards and needed repairs. Your contract's inspection paragraph sets strict deadlines for requesting repairs or credits, so move quickly.

Step 5: Review title and survey

The title commitment shows liens, easements and claims against the property. The survey shows boundaries and structures. Your attorney reviews both and resolves problems before closing.

Step 6: Secure homeowners insurance

Your lender will require insurance before closing. If you're buying a condominium, you'll typically need a unit-owner policy that complements the association's master policy.

Step 7: Close

At closing you'll sign the loan and title documents and pay closing costs. Your attorney reviews the Closing Disclosure and settlement statement against your contract, including the property tax proration.

Common pitfalls

Underestimating closing costs. Budget for more than the down payment.
Skipping the inspection. It's your chance to find problems before you own them.
Not reading the fine print in the contract and loan documents.
Stretching your budget too far.
Ignoring the neighborhood, including condo association finances and rules.

Final thoughts

Following these steps with the right team makes buying in Chicago far smoother. See buyer representation or schedule a consultation.

By Attorney Shara Kamal. General information for Illinois readers; not legal advice for a specific situation.