15 Things to Know Before You Buy a Home

The Complete 2026 Chicagoland Mortgage Guide: 15 Things to Know Before You Buy a Home

If you're thinking about buying a home in Chicago or the surrounding suburbs, I want you to do one thing before you start making offers: understand the mortgage numbers first.

I'm David Braun, Mortgage Loan Officer, NMLS #303007. I entered the mortgage business in 1997, and one lesson has remained true through changing markets, changing technology and changing interest rates:

A mortgage is not just an application. It is a financial strategy.

You can apply for a mortgage online in minutes today. But an online application doesn't necessarily tell you whether you're choosing the right loan, budgeting for the right payment, preparing correctly for underwriting or overlooking an issue that could become a problem after you make an offer.

That's why I believe the mortgage process should begin with a conversation.

BEFORE YOU MAKE AN OFFER

Get a Personal Mortgage Review With David Braun

Let's review your estimated buying power, monthly payment, down payment, cash needed for closing and potential financing options.

CALL OR TEXT: 312-656-0220

David Braun | Mortgage Loan Officer | NMLS #303007

Your Home. Your Future. My Commitment.

Chicago's Housing Market Makes Mortgage Preparation More Important

Chicagoland buyers are dealing with home prices, property taxes, insurance costs, interest rates and competition for desirable properties.

According to Redfin housing-market data, the median Chicago home sale price was approximately $429,785 in July 2026, up 8.8% compared with the previous year.

At the same time, Freddie Mac reported that the national average 30-year fixed mortgage rate was 6.71% as of September 3, 2026.

That does not mean 6.71% is the rate you will receive. Mortgage rates and pricing can vary based on the market, credit, loan program, property, loan amount, occupancy, points and many other factors.

But it demonstrates something important:

Today, understanding the complete monthly payment is every bit as important as understanding the price of the house.

1. Before You Make an Offer, Have These 7 Numbers Reviewed

Before you become emotionally attached to a house, I want you to understand these seven numbers.

1. Maximum purchase price — what you may qualify to purchase.
2. Comfortable purchase price — what actually fits your personal budget.
3. Estimated monthly payment — including more than principal and interest.
4. Down payment — how much you plan to invest upfront.
5. Estimated cash to close — which can include more than the down payment.
6. Estimated property taxes and insurance — especially important in Chicagoland.
7. Your financial cushion after closing — because owning a home should not leave you without emergency savings.

There can be a major difference between the maximum loan for which someone qualifies and the payment they actually feel comfortable making every month.

I want to help you understand both.

2. What Does a $400,000, $500,000 or $600,000 Home Really Cost Per Month?

Homebuyers frequently focus on the purchase price without calculating the complete monthly housing expense.

Your total payment may include:

• Mortgage principal
• Mortgage interest
• Property taxes
• Homeowners insurance
• Mortgage insurance when applicable
• HOA or condominium assessments when applicable

Here is a purely illustrative example showing why those additional costs matter.

Example assumptions: 10% down, 30-year fixed mortgage using 6.71% only as an illustration, estimated property taxes equal to 2% of purchase price annually, illustrative homeowners insurance, illustrative mortgage insurance equal to approximately 0.50% annually, and a $300 monthly HOA assessment.

Purchase Price	$400,000	$500,000	$600,000
10% Down	$40,000	$50,000	$60,000
Example Loan	$360,000	$450,000	$540,000
Principal & Interest	Approx. $2,325	Approx. $2,907	Approx. $3,488
Example Taxes	$667	$833	$1,000
Example Insurance	$150	$175	$200
Example Mortgage Insurance	$150	$188	$225
Example HOA	$300	$300	$300
Illustrative Total	Approx. $3,592	Approx. $4,403	Approx. $5,213

These examples are for educational purposes only and are not quotes or offers to lend. Actual rates, taxes, insurance, mortgage insurance, HOA expenses, loan terms and payments will vary substantially by borrower and property.

This is exactly why I encourage buyers to call me before setting their home-search budget.

3. Chicago Property Taxes Can Change Your Buying Power

This is one of the most important considerations for Chicagoland buyers.

Imagine two homes both priced at $450,000.

One property might have significantly higher annual property taxes than the other.

Even though the purchase prices are identical, the monthly housing expenses can be dramatically different.

That difference can also affect mortgage qualification because taxes are typically included when calculating the borrower's total housing obligation.

Don't shop based only on purchase price.

When you're considering a particular property, call me and we can discuss how that property's estimated taxes may affect your payment.

4. How Much Cash Do You Really Need to Buy a Home in Illinois?

Another common misconception is that the down payment equals the amount of money needed at closing.

It doesn't necessarily.

A home purchase may involve:

• Down payment
• Lender-related closing costs
• Title and settlement costs
• Appraisal and other applicable charges
• Prepaid homeowners insurance
• Prepaid interest
• Initial escrow deposits for taxes and insurance
• Other transaction-related expenses

You may also want money remaining after closing for moving, furnishings, repairs and emergency savings.

The better question isn't:

"What's my down payment?"

It's:

"What is my estimated total cash requirement, and what will I have left afterward?"

Want me to run the numbers for your situation?

Call or text David Braun at 312-656-0220.

5. Illinois Down Payment Assistance: What Buyers Should Know in 2026

Some Illinois buyers may qualify for assistance through programs offered by the Illinois Housing Development Authority, commonly known as IHDA.

As of September 2026, IHDA lists several programs, including:

• Access Home: assistance equal to 6% of the purchase price, up to $15,000, structured as an interest-free loan deferred until the mortgage is paid off, refinanced or the property is sold.
• Access Forgivable: 4% of the purchase price up to $6,000, with assistance forgiven monthly over 10 years.
• Access Deferred: 5% of the purchase price up to $7,500, structured as an interest-free deferred loan.
• Access Repayable: 10% of the purchase price up to $10,000, structured as an interest-free loan repaid monthly over 10 years.

Program eligibility requirements apply. IHDA currently lists requirements involving matters such as income limits, purchase-price limits, borrower contribution, primary-residence requirements, homebuyer counseling and minimum credit standards. Program terms and availability may change.

If you're wondering whether an Illinois homebuyer assistance program could apply to your situation, don't automatically assume you qualify—or don't qualify.

Start by asking.

6. Self-Employed in Chicago? Here's What Mortgage Underwriters May Review

Self-employed borrowers are one of the groups I believe benefit most from preparing early.

If you're a:

• Business owner
• Independent contractor
• 1099 professional
• Schedule C borrower
• Partner in a business
• S-corporation shareholder
• Commission-based professional

your gross business revenue is not necessarily the same as the income that can be used to qualify for a mortgage.

Depending on the loan program and situation, underwriting may evaluate items such as:

• Personal tax returns
• Business tax returns
• Schedule C income
• K-1 income
• W-2 income from your business
• Business ownership percentage
• Business expenses
• Year-over-year income trends
• Profit and loss statements
• Business stability
• Other supporting documentation

This is also why I wrote The Self-Employed Mortgage Playbook—to help entrepreneurs and business owners better understand how mortgage qualification works before they begin the process.

If you're self-employed and thinking about buying a home, call me before making major financial or tax decisions that could affect your mortgage qualification.

7. Prequalification vs. Preapproval vs. Underwritten Approval

These terms are sometimes used differently among lenders, so homebuyers should understand exactly what has been reviewed.

Prequalification

A prequalification may be based largely on information supplied by the borrower and can provide an early estimate of possible qualification.

Preapproval

A preapproval generally involves a more detailed review of qualifying information and documentation, depending on the lender's process.

Underwritten Approval

In some circumstances, a borrower's file may receive a more extensive underwriting review before a property is identified, although availability and terminology vary among lenders and programs.

When you're preparing to make an offer, ask:

"Exactly what has been reviewed to issue this letter?"

That's much more useful than simply asking what the letter is called.

8. 10 Mortgage Mistakes I Would Avoid After Working in Lending Since 1997

1. Shopping for a house before reviewing financing.
2. Focusing exclusively on the advertised interest rate.
3. Ignoring property taxes and insurance.
4. Opening new credit during the mortgage process without discussing it first.
5. Making large unexplained bank deposits.
6. Changing employment without understanding the possible mortgage impact.
7. Spending all available savings on the down payment.
8. Failing to compare the total cost of different loan options.
9. Waiting until underwriting to address complicated income or credit situations.
10. Being afraid to ask your loan officer questions.

A good mortgage process should involve communication before problems happen—not explanations afterward.

9. Don't Just Ask, "What's Your Mortgage Rate?" Ask These 10 Questions

When comparing mortgage options, ask:

1. What is the interest rate?
2. What is the APR?
3. Are there discount points?
4. What are the origination charges?
5. Are lender credits included?
6. What mortgage insurance applies, if any?
7. What is the estimated total monthly payment?
8. What is the estimated cash to close?
9. How long is the rate lock?
10. What does the Loan Estimate show when I compare the complete transaction?

The Consumer Financial Protection Bureau recommends comparing Loan Estimates, including interest rate, principal and interest, mortgage insurance, total monthly payment, origination charges, lender credits and cash to close.

One number does not tell you the entire story.

10. Should You Pay Points to Lower Your Mortgage Rate?

Sometimes paying discount points may make sense. Sometimes it may not.

One discount point generally equals 1% of the loan amount.

For example, on a $450,000 mortgage:

1 point = $4,500.

Suppose, purely for illustration, paying $4,500 resulted in a lower interest rate that reduced the payment by $75 per month.

Your simple break-even period would be:

$4,500 ÷ $75 = 60 months, or approximately five years.

If you expected to refinance or sell before reaching that point, paying those points might produce a different financial outcome than if you expected to keep the mortgage for 15 years.

The actual interest-rate reduction associated with points varies by lender, loan, market and timing.

That's why I prefer showing borrowers multiple scenarios instead of simply saying, "This is your rate."

11. FHA vs. Conventional in Chicagoland: Which Costs Less?

There isn't one answer that works for every borrower.

FHA financing may be attractive for certain buyers because of its program structure and underwriting characteristics.

Conventional financing may be more attractive for others based on credit, down payment, mortgage insurance, property type or long-term costs.

When comparing FHA and conventional financing, consider:

• Interest rate
• APR
• Down payment
• Mortgage insurance
• Upfront costs
• Monthly payment
• Credit profile
• Seller concessions where applicable
• Property requirements
• How long you expect to keep the mortgage

Don't choose FHA because someone told you FHA is always cheaper.

Don't choose conventional because someone told you conventional is always better.

Run the numbers for your specific situation.

12. Can You Buy a Home With a 620, 640, 660, 680 or 700 Credit Score?

Credit score matters, but it is only one piece of mortgage qualification.

A loan decision can also depend on:

• Income
• Employment
• Debt-to-income ratio
• Down payment
• Assets and reserves
• Property type
• Loan program
• Credit history
• Occupancy
• Other underwriting requirements

620 Credit Score

Some financing options may potentially be available depending on the complete borrower profile and applicable program guidelines.

640 Credit Score

A 640 score can be particularly relevant because current IHDA Access programs list a 640 minimum credit score, along with additional eligibility requirements.

660 Credit Score

A higher score may expand potential options or affect pricing, but the rest of the mortgage profile still matters.

680 Credit Score

Borrowers may see additional pricing or program opportunities compared with lower-score scenarios, depending on the transaction.

700+ Credit Score

Strong credit can be beneficial, but a high score by itself does not guarantee mortgage approval or the lowest available pricing.

Do not assume that your credit score alone tells you whether you can buy a home.

Call me and let's review the entire situation.

NOT SURE IF YOU CAN QUALIFY?

You don't need to figure it out by yourself.

Call or Text David Braun: 312-656-0220

Let's discuss where you are today and what your next step could be.

13. Buying a Chicago Condo? Check These 10 Things First

Condominium financing can involve more than simply approving the individual borrower.

The condominium project itself may also be reviewed.

Before falling in love with a condo, consider asking about:

1. Monthly HOA assessment
2. Special assessments
3. Association reserves
4. Association insurance coverage
5. Owner occupancy
6. Delinquent HOA assessments
7. Pending litigation
8. Commercial space where applicable
9. Property condition
10. Whether the project meets requirements for the financing you intend to use

A beautiful condo doesn't automatically mean every mortgage program will finance it.

Before making an offer, call me so we can discuss the financing side too.

14. Mortgage Rates Went Up. Should You Wait to Buy?

This is one of the most common questions in today's market.

Freddie Mac reported a national average 30-year fixed mortgage rate of 6.71% on September 3, 2026.

Does that automatically mean you should wait?

No.

Does it automatically mean you should buy now?

No.

The answer depends on your situation.

Consider:

• Your current rent
• Your available savings
• Your expected mortgage payment
• Your job and income stability
• How long you expect to own the home
• The price of the property
• Current seller negotiating opportunities
• Potential closing-cost concessions
• Your personal need to move
• Your long-term financial goals

Trying to perfectly predict future mortgage rates is not a homebuying strategy.

A better strategy is determining whether buying a particular home at today's numbers makes sense for you.

And if rates eventually improve after you purchase, refinancing may potentially become something to evaluate at that time, subject to qualification and market conditions.

15. Why Work With David Braun Instead of Simply Choosing a Big Online Mortgage Company?

Large national mortgage companies have sophisticated technology, advertising budgets and convenient online applications.

Those things can be valuable.

But I'm not trying to compete by pretending technology doesn't matter.

My goal is to combine today's mortgage technology with something technology cannot replace: a personal mortgage conversation.

Online Application vs. Personal Strategy

An application collects information.

A mortgage conversation asks what you are trying to accomplish.

National Information vs. Chicagoland Perspective

Chicagoland buyers have to think about local home prices, property taxes, condominiums, HOA expenses and community-by-community payment differences.

Application First vs. Conversation First

I would rather understand your objectives before trying to fit you into a mortgage option.

Transaction vs. Relationship

My goal isn't simply to get you through an application.

I want you to understand the mortgage you're considering.

That means discussing the payment, cash requirement, loan structure and potential obstacles—not simply quoting an interest rate.

You Don't Need to Be Ready to Buy Today to Call Me Today

This is important.

You don't need to have a Realtor yet.

You don't need to have a house picked out.

You don't need perfect credit.

You don't need to know whether you want FHA or conventional financing.

You don't need to know exactly how much you can afford.

Those are reasons to have the conversation—not reasons to postpone it.

Maybe you're buying in 30 days.

Maybe you're buying in six months.

Maybe you're self-employed and don't know how your income will be calculated.

Maybe you're worried about your credit.

Maybe you're trying to determine whether you should continue renting.

Maybe you simply want to know what a $400,000, $500,000 or $600,000 home would mean for your monthly budget.

Call me.

The David Braun Personal Mortgage Review

When we discuss your mortgage goals, we can review topics such as:

• Your estimated buying power
• Your comfortable payment range
• Your expected down payment
• Your estimated cash needed to close
• Your income and employment situation
• Your existing monthly debts
• Your credit profile
• Your property-tax expectations
• Potential mortgage insurance
• Possible FHA, conventional, VA, jumbo or other financing options when appropriate
• Illinois homebuyer assistance possibilities when applicable
• Issues worth addressing before making an offer

My goal is simple:

I want you to understand the mortgage before you commit to the house.

THINKING ABOUT BUYING A HOME IN CHICAGOLAND?

Don't begin with an online application.

Begin with a conversation.

Call or Text David Braun

312-656-0220

David Braun
Mortgage Loan Officer
NMLS #303007

Your Home. Your Future. My Commitment.

Frequently Asked Questions About Buying a Home in Chicagoland

When should I contact a mortgage loan officer?

Ideally, before seriously shopping for a home. Reviewing financing early can help you understand your estimated buying power, monthly payment, down payment and potential cash needed to close.

Do I need 20% down to buy a home in Illinois?

No. Depending on eligibility and the mortgage program, lower down-payment options may be available. Some qualified Illinois borrowers may also have access to homebuyer-assistance programs.

Can I get a mortgage if I'm self-employed?

Self-employed borrowers can qualify for mortgage financing, but qualifying income may be calculated differently than income for a traditional salaried employee. Preparing documentation early can be valuable.

Can I buy a home with a 620 or 640 credit score?

Potential financing may be available depending on the loan program and the complete borrower profile. Credit score is only one component of mortgage underwriting.

Should I choose the lender offering the lowest advertised mortgage rate?

Compare more than the advertised rate. Review APR, points, lender fees, credits, mortgage insurance, monthly payment, cash to close and other terms shown on the Loan Estimate.

Should I wait for mortgage rates to fall before buying?

That depends on your individual finances, housing needs, expected ownership period, available inventory, purchase price and total monthly payment. Rather than trying to predict rates, evaluate whether the transaction makes sense based on today's numbers.

Who can I call about getting a mortgage in Chicagoland?

Call or text David Braun, Mortgage Loan Officer, NMLS #303007, at 312-656-0220 to discuss your homebuying plans and potential mortgage options.

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Sources and Important Information

Market information referenced in this article includes Freddie Mac Primary Mortgage Market Survey data, Illinois Housing Development Authority homebuyer program information, Consumer Financial Protection Bureau mortgage education materials and Redfin Chicago housing-market data. Information was reviewed in September 2026. Programs, rates, market conditions and guidelines can change.

Mortgage Disclosure: This article is provided for general educational and informational purposes only. It is not a commitment to lend, an offer of credit, a guarantee of approval or a guarantee of any particular interest rate, payment, program or loan terms. Rates and loan pricing may change without notice and vary based on borrower, property, credit, loan amount, loan program, occupancy and other factors. All loans are subject to applicable credit, income, asset, property, program and underwriting approval requirements. Down-payment assistance programs are subject to eligibility, availability and program requirements. Equal Housing Opportunity.

David Braun | NMLS #303007 | 312-656-0220

I recommend: “Chicagoland Mortgage Loan Officer David Braun explains mortgage payments, FHA vs conventional loans, credit scores, Illinois down payment assistance, property taxes, self-employed mortgages and what Chicago homebuyers should know before making an offer. Call 312-656-0220.