The first-time homebuyer's guide to Illinois (and McHenry County in particular)

Step 1: Get pre-approved before you shop

A pre-approval is a real underwriting look at your income, credit, and assets, and it tells you what you can actually spend. In a competitive market, sellers won't take an offer seriously without one. Ours takes one conversation and usually comes back the same day.

Step 2: Know your down payment options

The 20% rule is a myth. Real minimums:

• Conventional: as little as 3% down for first-time buyers
• FHA: 3.5% down with more flexible credit
• VA: 0% down for eligible veterans and service members
• USDA: 0% down in eligible rural areas of McHenry County
• Portfolio options for buyers whose files don't fit a standard box

Step 3: Look into Illinois assistance

The Illinois Housing Development Authority (IHDA) offers down-payment assistance programs that pair with a standard first mortgage, and some McHenry County municipalities run their own. Assistance amounts and eligibility change year to year, so ask your loan officer what's live before you write an offer.

Step 4: Budget for property taxes, honestly

Illinois has some of the highest effective property tax rates in the country, and McHenry County is near the top of the state. On a $400,000 home, taxes can add $700 to $900 a month to your payment. Our payment calculator defaults to a local tax rate for exactly this reason.

Step 5: From accepted offer to keys

Once your offer is accepted, a typical purchase closes in 30 to 45 days. Because Home State Bank processes, underwrites, and closes in Crystal Lake, we've closed in as few as nine days when a deal needed it. Along the way you'll order an inspection, the bank orders the appraisal, and your loan officer walks you through the Closing Disclosure three days before you sign.