How Much House Can I Afford in DuPage County? A Real Answer

How much house can I afford in DuPage County, really?

1. Cash on hand. Your down payment plus closing costs plus a cushion for moving, repairs, and the surprises that always come with a first month in a new home.
2. Borrowing power. What a lender will approve based on your income, your existing debts, and your credit. This is the ceiling.
3. Comfort. The monthly payment you can carry without dreading the first of the month.

What goes into the monthly payment

• Principal and interest on the loan itself.
• Property taxes, which in Illinois tend to run higher than in many states. This matters here more than almost anywhere, so never estimate a payment without them.
• Insurance, meaning homeowners coverage, and sometimes private mortgage insurance if you put down less than 20 percent.
• HOA dues if you buy a townhome or condo.

The price tag tells you what a house costs. The monthly payment tells you whether you can live there comfortably, and those are not the same number.

The 20 percent down myth

• FHA loans let qualified buyers put down far less than 20 percent.
• Low-down conventional loans open the door for buyers with solid credit and a smaller cushion.
• VA loans offer strong terms for those who have served.
• IHDA, the Illinois Housing Development Authority, offers down-payment assistance for first-time and moderate-income buyers.

Get pre-approved before you fall in love

1. Talk to a lender. I can introduce you to a few good local ones.
2. Gather documents: pay stubs, W-2s or tax returns, bank statements.
3. Get the pre-approval letter, which sets your true ceiling.
4. Pick a comfort number below that ceiling, the payment you genuinely want to live with.

How location changes your number

• Downers Grove gives you a walkable downtown, the Tivoli Theatre, and an express BNSF Metra ride that runs roughly 35 minutes to Union Station. It is my number one market for a reason.
• Lombard, the Lilac Village, and nearby Lombard often stretch a budget further while keeping you close to the same train line and to Yorktown Center.
• Naperville brings the Riverwalk and a large downtown, though it sits further out on the BNSF.
• Wheaton offers a traditional downtown and Wheaton College, on the Union Pacific West line into Ogilvie.

FAQ: How much house can I afford in DuPage County

How do I figure out how much house I can afford in DuPage County?

Do I really need 20 percent down to buy here?

Why are Illinois property taxes such a big deal for affordability?

Should I get pre-approved before I start looking?

Let's find your real number