Home Buying FAQ

Top 10 Questions Home Buyers Ask — and Answers

Buying a home is one of the biggest financial and lifestyle decisions you’ll ever make, and it often comes with a lot of questions. Whether you’re a first-time buyer trying to understand down payments and pre-approvals, or you’re moving within DuPage County and want to know how competitive the market is in Downers Grove, Naperville, or Elmhurst, having the right answers is key. To help you feel confident in your journey, we’ve compiled the top questions homebuyers are asking,  plus additional insights specific to the surrounding DuPage County market.

1. How much home can I afford?
   Answer: Start by analyzing your income, debts, and other monthly expenses. Many lenders use a “debt-to-income” (DTI) ratio — often capping total debt payments (including the new mortgage) at ~ 43% of gross income (though prudent buyers aim much lower).
   Also, factor in down payment, closing costs, property taxes, insurance, and maintenance when setting a comfortable price range.

2. What’s the difference between pre-qualification and pre-approval?
   Answer:

   • Pre-qualification is usually an informal estimate by a lender based on the information you self-report (income, debts, etc.).

   • Pre-approval involves the lender verifying your financial documents (income, credit, assets) and giving you a more committed estimate of how much you can borrow.
     Pre-approval is stronger when making offers on homes. 

3. How much money do I need for a down payment and closing costs?
   Answer:

   • Down payments vary by loan type. Conventional loans often require 5-20%, while FHA loans might require as little as 3.5%. 

   • Closing costs generally range from 2% to 6% of the home’s purchase price for things like title fees, inspections, insurance, taxes, and commissions).

   • Always budget a buffer for unexpected costs or repairs after purchase.

4. What are closing costs, and who pays them?
   Answer: Closing costs include lender fees, title search and insurance, appraisal, escrow fees, recording fees, etc. Buyers typically pay many of those, but Sellers pay a their share of closing costs too, which often includes commissions.

5. What is an earnest money deposit (also called escrow or good faith deposit)?
   Answer: Earnest money is a deposit the buyer gives to show serious intent to purchase. It’s held in escrow and applied toward the down payment or closing costs at closing. If contingencies (inspection, financing, etc.) aren’t met, the buyer may get it back (depending on contract terms). 

6. What contingencies should I include in an offer?
   Answer: Common contingencies include:

   • Home inspection contingency (you can back out or negotiate repairs)

   • Financing contingency (sale depends on getting your loan)

   • Appraisal contingency (if the home appraises low, you can renegotiate or walk away)

   • Title review (ensures no liens or title issues)
     These protect you as the buyer.

7. How long does the homebuying process take?
   Answer: It varies by market, financing, and seller responsiveness, but a typical timeframe from accepted offer to closing is 30 to 45 days. Some deals take more or less time depending on inspections, lender delays, etc. 

8. What should I ask or check during a home inspection or walk-through?
   Answer:
   Inspectors and buyers usually focus on:

   • Foundation, roof, plumbing, electrical, HVAC

   • Evidence of water damage or mold

   • Age and condition of major systems (water heater, furnace)

   • Whether renovations/additions were done correctly (with permits)

   • Any safety hazards (lead paint, asbestos, radon)

   • Whether appliances are included and in working order
     Also, perform a final walk-through just before closing to ensure repairs are done and nothing’s changed.

9. What are property taxes, HOA fees, and utility costs likely to be?
   Answer:

   • Ask the seller, agent, or local municipality for past tax bills.

   • If the home is part of an HOA, ask for the HOA’s fee schedule, rules, and what those fees cover.

   • Request utility bills or averages (electric, water, gas) for the past 12 months. These recurring costs impact your monthly budget. 

10. What about the neighborhood, school district, risks (flood, natural disasters), and resale value?
    Answer:
    These are critical for long-term satisfaction. Ask:

    • What are crime rates, noise levels, proximity to amenities?

    • Which schools serve that area and how are they rated?

    • Does the property lie in a flood zone? We don't have to worry much about other natural disasters in our area.

    • How quickly do homes sell nearby, and what’s the trend in home values?
      These insights help you assess whether it’s a good investment and a place you’ll enjoy living.

How about in our local market?

1. How competitive is the market in towns like Downers Grove, Naperville, and Elmhurst?

Answer: Very competitive. Inventory in DuPage County is historically tight, months of supply often hover around 2 months or less, well below a balanced 6-month market. In hot submarkets,like Downers Grove’s Pierce Downer, Denburn Woods, or Elmhurst’s walk-to-town neighborhoods, homes can receive multiple offers within days. Buyers often need pre-approval letters and strong offers to compete.

2. What price points move fastest in DuPage County?

Answer: Homes under $500K tend to sell the quickest because they attract first-time buyers and downsizers alike. That said, luxury homes ($1.5M–$2.5M+) in towns like Hinsdale, Oak Brook, and Downers Grove are also moving well when they’re modern, staged, and in desirable school districts. Mid-range homes ($700K–$1.2M) vary depending on location, updates, and neighborhood demand.

3. How important are schools when buying in DuPage County?

Answer: Extremely important. Many buyers prioritize highly ranked schools such as Downers Grove District 58 and District 99, Naperville District 203 and District 204, and Hinsdale Central. Homes within top-rated attendance boundaries often sell at a premium and hold resale value better. Even buyers without children often consider schools because of the long-term investment impact.

4. Are property taxes higher in DuPage County compared to nearby counties?

Answer: Yes, Illinois overall has some of the highest property taxes in the nation, and DuPage County is no exception. However, compared to neighboring Cook County, DuPage often offers lower effective rates for similar home values and better services. Buyers should budget for property taxes ranging from $8K–$20K+ annually depending on home size, location, and school district.

5. What types of homes hold value best in DuPage County?

Answer: Homes that balance charm and modern convenience tend to hold value best. Updated mid-century homes near walkable downtowns (Downers Grove, Glen Ellyn, Wheaton) are strong performers. New construction in established neighborhoods also sells at a premium. Proximity to Metra stations and highways significantly boosts resale appeal.

No matter where you’re at in the buying process, the right guidance makes all the difference. From understanding financing and closing costs to navigating DuPage County’s competitive neighborhoods and school districts, being prepared helps you make smarter, faster decisions. At The Glover Team, we’ve guided hundreds of families through every step of buying a home in Downers Grove and the surrounding communities, and we’d love to do the same for you. If you’re ready to take the next step, or just want answers tailored to your unique situation, reach out today. Your dream home in DuPage County may be closer than you think.