For many renters, buying a downtown Chicago condo is the next logical step after renting an apartment for several years. If you enjoy high-rise living and believe you are committed to living downtown for the next five to 7 years, then purchasing a Chicago condo is definitely something that should be explored.
What do you need to know before you buy a Downtown Chicago condo?
1.) How much rent do you pay?
If you’re paying more than $2400 per month in rent, then you could potentially get a mortgage for less. In some neighborhoods with lower prices, mortgages can range from $1800-2200 per month.
2.) Where do you want to live?
The western and northern neighborhoods (like Lincoln Park, Bucktown, and Lakeview) are currently more of a seller’s market. When a seller puts something attractive on the market, it’s likely to sell quickly. However, if you want to live in the more central, downtown neighborhoods like Streeterville or River North, it’s a more of a buyers market because there is more supply, which means more to choose from.
3.) How much money do you need to put down?
A lot of buyers believe they need to put 20% down, but in reality, your down payment can be as low as 5%. This means you might not need to have as much money saved up as you had previously thought. It’s always best to speak with a mortgage broker before beginning the process of buying a downtown Chicago condo. Mortgage brokers will help you understand what you can afford and what types of loan options are available.
4.) What do you hope to gain from buying?
It’s very important to think about this before starting the sales process. Some people have a more romantic approach , where they’re looking for a home, while others are more financially focused and are looking to make an investment. A buyer’s perspective is a big driving factor behind the search because it will determine what types of available listings you’ll see.