While the purchase price is certainly one factor to consider when buying a home, it's not the only one. If you're thinking of buying a home, there are certain costs you need to be aware of before making your decision.
Here are some of the most common costs homebuyers should know about when buying a home in Chicago:
In Chicago, the median home sale price is $253,000 and requires an 11% down payment on average. Besides the down payment, you will need to factor in the cost of your mortgage. The size of your mortgage payments will depend on the price of your home and the interest rate on your loan.
When you buy a home, there are a number of fees and expenses that are due at closing. These include the loan origination fee, appraisal fee, title insurance, and more. The average closing costs in Chicago usually add up to approximately 2% to 5% of the purchasing price.
When you buy a home, you'll need to get homeowner's insurance. This will protect your home in case of fire, theft, or other damage. The cost of homeowner's insurance varies, depending on the value and location of your new home but, typically, home insurance can amount to $800 per year in Chicago.
Utilities and Property Taxes
The cost of utilities varies, depending on the size of your home and the number of people living in it. In Chicago, the average monthly cost for utilities is between $132 and $200. Moreover, you will need to factor in the 1.03% property taxes as well.
Want to know more about the costs associated with homebuying in Chicago?
Understanding the costs associated with buying a home in Chicago can be daunting, especially for a first-time buyer. For this reason, it’s recommended that you enlist the help of a skilled Realtor so that you can make informed decisions throughout the buying process. For more information about associated costs when buying a home in Chicago, give us a call today!