With references to the Illinois Multi-Board Residential Real Estate Contract 8.0 where applicable.
Before You Start Looking
Get Pre-Approved
Get pre-approved for a mortgage, not just pre-qualified. Pre-approval means a lender has reviewed your income, assets, and credit and is willing to lend you a specific amount. It tells sellers you're serious and gives you a realistic budget. While you're at it, check your credit report for errors — even small ones can affect your rate.
Budget Beyond the Down Payment
Start saving beyond the down payment. Closing costs, moving expenses, immediate repairs, and furnishing a new place add up fast. A reasonable estimate is 2–5% of the purchase price for closing costs alone, plus whatever you'll need in the first few months of ownership.
Assembling Your Team
Line up your key advisors before you go under contract. Once your offer is accepted, the clock starts ticking on several deadlines.
Buyer's Agent
A buyer's agent helps you find properties, write offers, and negotiate. Understanding how your agent gets paid is important because it affects your total costs. Under the Multi-Board 8.0 contract, Paragraph 4 addresses whether the seller will contribute to your brokerage's compensation or not — this is negotiated upfront as part of your offer.
Real Estate Attorney
A real estate attorney is essential in Illinois. Attorney review (Paragraph 13 of the 8.0) gives both sides just five business days after acceptance to review, approve, or propose changes to the contract. If you don't have an attorney ready to go, you can burn through that window quickly. Hire one before you make your offer.
Home Inspector
Identify a qualified home inspector early. Under the 8.0 contract, you may have as few as five business days to complete inspections and respond to the seller, so having someone on standby matters.
Mortgage Loan Officer
Your loan officer will guide you through the lending process and should be responsive. Financing delays can jeopardize the deal.
Making an Offer and Going Under Contract
Once your offer is accepted, several clocks begin running simultaneously. Keep a calendar with every deadline written down.
Earnest Money
Earnest money is your good-faith deposit — typically 1–3% of the purchase price in the Chicago area. Under the 8.0 contract (Paragraph 3b), it must be tendered within a set number of business days after acceptance. The money is held in escrow by a designated party (not the seller directly) and applied toward your purchase at closing.
If the deal falls through for a legitimate contractual reason, you get it back — but only upon joint written direction from both parties or a court order (Paragraph 27). Keep copies of every notice you send.
Attorney Review Period
Your attorney review period begins immediately upon acceptance. Your attorney should receive the contract the same day. Within five business days, attorneys may approve the contract, disapprove it, or propose modifications. If modifications are proposed, the parties have ten business days total from acceptance to reach agreement — otherwise either side can terminate (Paragraph 13).
Insurance
Homeowners Insurance
Shop for homeowners insurance right away. The 8.0 contract (Paragraph 9) gives you ten business days to obtain evidence of insurability at standard rates for an HO-3 or equivalent policy. If you can't get insured and notify the seller in time, you can cancel. Beyond the contractual deadline, you simply cannot close on a mortgage without an active policy.
When getting quotes, pay attention to what's covered and what isn't. Standard HO-3 policies typically cover the dwelling, personal property, liability, and additional living expenses if you're displaced. They generally do not cover floods, earthquakes, or sewer backup without separate riders or policies.
Flood Insurance
Flood insurance is a separate policy. The 8.0 contract (Paragraph 10) lets you void the contract if the property is in a special flood hazard area, but you need to act within the specified timeframe. Even if the property isn't in a designated zone, consider whether your area has flooding risk — flood maps don't capture everything.
Title Insurance
Title insurance protects you if someone later claims they have a right to your property. Under the 8.0 contract (Paragraph 20), the seller pays for a title commitment and policy. Your lender will require a lender's title policy, and you should strongly consider an owner's policy as well — it's a one-time cost at closing that protects you for as long as you own the home.
The Inspection Process
Don't skip inspections. Even on newer homes, inspectors routinely find issues the average buyer wouldn't catch — roof deficiencies, improper wiring, foundation cracks, plumbing problems, or HVAC issues.
Types of Inspections to Consider
Beyond the general home inspection, consider whether you need specialized inspections: radon testing (very common in Illinois), sewer scope (especially for older homes), chimney inspection, mold testing, or a structural engineer's assessment. If the property has a well or septic system, the 8.0 contract (Paragraph 16b) provides for those inspections at the seller's expense.
What's Negotiable After Inspections
Under the 8.0 contract (Paragraph 15b), only defects in "major components" are fair game for repair requests — structural elements, roof, HVAC, plumbing, electrical, windows, doors, and appliances. Cosmetic issues and routine maintenance items are not grounds for negotiation. Requesting repairs outside this scope can actually give the seller the right to terminate the contract.
Financing and Appraisal
Stay in constant contact with your lender. Under the 8.0 contract (Paragraph 8a), you must apply for financing and pay all required fees within ten business days of acceptance. The overall financing contingency deadline is forty-five days after acceptance or five business days before closing, whichever comes first.
The Appraisal
Your lender will order an appraisal to confirm the property's value supports the loan amount. If the appraisal comes in low, you have a few options: negotiate a price reduction with the seller, make up the difference in cash, or walk away under your financing contingency. An appraisal addendum (referenced in Paragraph 37 of the 8.0) can formalize how a low appraisal will be handled.
Protect Your Financial Profile
During this period, do not change jobs, take on new debt, make large deposits or withdrawals, or open or close credit accounts. Lenders re-verify your financial profile before closing, and any changes can delay or kill the deal.
Utilities and Services
A couple of weeks before closing, contact utility providers to set up accounts in your name starting on the closing date. This includes electricity, gas, water and sewer, trash collection, and internet or cable service. Ask the seller's agent which companies service the property — in some areas you won't have a choice of provider.
Under the 8.0 contract (Paragraph 12), utilities are prorated to the closing date, meaning the seller pays for their share through closing day and you take over from there. If you're in an area with municipal water, check whether there are any outstanding water bills — some municipalities place liens on the property for unpaid water charges.
Confirm that the seller will keep utilities on through closing. This matters especially if you have inspections scheduled, since Paragraph 15 of the 8.0 requires that all utilities be on during inspections.
Property Taxes and Prorations
Property taxes in Illinois are paid in arrears, which confuses many first-time buyers. You're paying this year for last year's taxes. At closing, the seller credits you for their share of the current year's taxes based on the most recent tax bill. The 8.0 contract (Paragraph 12a) specifies this proration is based on a percentage of the most recent ascertainable bill.
After closing, your lender will typically escrow for property taxes — meaning a portion of each monthly mortgage payment goes into an escrow account, and the lender pays your tax bill when it comes due. Your first year, you'll fund this escrow at closing.
Be aware that if the property was previously receiving a homeowner exemption, senior exemption, or other tax break that won't apply to you, your actual tax bill may be higher than what was prorated at closing.
The Final Walkthrough
The 8.0 contract (Paragraph 23) gives you the right to inspect the property before possession to confirm it's in substantially the same condition as when you made your offer, normal wear and tear excepted.
Do this walkthrough carefully. Check that all fixtures and personal property included in the contract are still there. Run the faucets, flush the toilets, test the appliances, open and close the garage door, and make sure the seller has removed all their belongings and left the place broom clean. If something is wrong, raise it with your attorney before closing — it's much harder to resolve issues after you've signed everything.
At Closing
Review your closing disclosure at least three days before closing — your lender is required to provide this under federal regulations. Compare it to your original loan estimate and ask about any discrepancies. Know what you're paying and why.
Bring a government-issued photo ID. Your closing funds will need to be in the form of a wire transfer or certified check — personal checks are not accepted for the balance due.
After closing, you'll receive the deed, your title policy, and your closing documents. Keep all of these in a safe, accessible place.
After You Move In
- Change the locks. You don't know who has copies of the existing keys.
- Locate the main water shut-off valve, the electrical panel, and the gas shut-off.
- If you have a sump pump, make sure it's working — especially if you're closing in spring.
- Set up a home maintenance schedule: HVAC filters, gutter cleaning, water heater flushing, dryer vent cleaning.
- If you received a home warranty (Paragraph 33 of the 8.0), read the coverage terms so you know what's included and how to file a claim.
- File for your homeowner exemption with the county assessor's office — it reduces your property tax bill and does not happen automatically.
Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. Every transaction is different. Consult with your real estate attorney, lender, and insurance professional for guidance specific to your situation.