Last November, Austin Weekly News launched a new project called “At Home on the Greater West Side.” Our goal was to demystify the homebuying process, specifically for residents of Austin, West Garfield Park and North Lawndale and the surrounding suburbs.
Now, a year later, we’re wrapping up the series. In many ways, AWN learned along with its readers, and if we’ve learned anything, it’s that the journey to homeownership isn’t exactly easy. But that doesn’t mean you — yes you! — can’t achieve it.
A 4-step home buying process recap
1. Get realistic and take a class
Realtor Camella Sutton tells her clients to be realistic about what they can afford, and to save up for the “what-ifs”: “Knowing what’s out there is big, and [so is] knowing what you can and can’t afford,” she said. “What are you willing to cut back on? What sacrifices are you willing to make to get to the point of homeownership?”
It might seem obvious, but you need a combination of loans and savings to buy a home. Experts suggest building up your credit score as much as possible and being realistic about how much you need to save for a downpayment on your ideal home. Real estate agents, lenders and community organizations can all help you with this early planning stage.
Many experts recommend HUD-certified homeownership courses to first-time buyers. We spoke with the folks at Neighborhood Housing Services of Chicago about their class, but there are tons of other options. HUD also has an online tool to search for housing counselors or courses based on your location and needs.
2. Find a lender and a real estate agent
Two primary people who will help make buying a home possible: A real estate agent and a lender. Real estate agents help buyers look at homes, make an offer and close on a home. Lenders deal with the financial side of things, pre-approving and approving buyers for a mortgage to buy property.
Before looking at properties, you’ll want to be preapproved for a mortgage. For this reason, many prospective buyers look for a lender first, work with them for their preapproval, and then find an agent, but you can pick an agent first. Lenders look at factors including income, savings and credit history to decide how much they would let you borrow to buy a home. You may want to shop around and get the opinion — and preapproval — of several lenders. Knowing how big of a mortgage you can get will help narrow your home search.
(Want to know more about lending and how to get a mortgage? Check out our guide at: https://www.austinweeklynews.com/2024/02/14/a-brief-course-on-lending/ W[1] ant to know more about finding the right agent and what their job entails? Read our Q&A with three Chicago-area real estate agents at https://www.austinweeklynews.com/2024/03/13/what-you-should-know-about-buying-a-home-according-to-3-real-estate-agents/.)
3. Look at homes, make an offer and close
This is the part of the process that likely comes to mind when you think about buying a house. With help from a real estate agent, prospective buyers tour properties, make offers and go through closing procedures that include getting a home inspection and meeting with a lawyer to finalize the terms of the sale.
Prospective buyers should make sure they budget for extra costs outside of a mortgage and downpayment. That includes closing costs, property taxes, home insurance and mortgage insurance, HOA fees, repairs, maintenance, renovations and more.
4. Complete renovations and repairs, and move in
Not all homes are move-in ready. A thorough home inspection before closing on the property can help buyers assess what work needs to be done on a property.
After moving in, homeownership costs don’t end at mortgage and insurance payments. Treat your home like the major investment it is: experts say it is a good plan to keep 1%-4% of the home’s total cost in reserve in case of an unexpected emergency. Regular maintenance of gutters, roof, appliances, plumbing and HVAC systems will also keep your property value up and ensure you get the most out of your investment.
For more about what to do once you become a homeowner, read our guide on what’s next. We have also written a need-to-know guide on Illinois and Cook County property taxes.
We hope that “At Home on the Great West Side” has served as a primer and resource for West Siders who are interested in homeownership. But if the whole thing still sounds intimidating and impossibly out of reach, the good news is that there are countless community, city, county, state and national resources to help people like you become homeowners.
AWN is even hosting its own series of educational homeownership events. The final event “Before you buy, do these things,” will be Sunday, Nov. 24 at 2 p.m. at 1359 S. Kildare Ave., Chicago.
For more opportunities for first-time homeowners and home buyer education, check out the:
In 12 months and over 30 stories, AWN spoke with countless real estate agents, local homeowners and housing experts about issues like saving for a mortgage, strengthening your credit, first time homebuyer programs and resources and the benefits of homeownership.
It was our goal to make this project accessible to as many people as possible. So in addition to traditionally reported pieces and features of community members, we also created graphics, explainers, glossaries and resource lists. We hope that even a small piece of this project has helped homeowners or prospective buyers on the West Side make a commitment to investing in themselves and their community through buying a home.
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.