When looking into Chicago real estate, theres a few costs you should become familiar with before the property becomes yours to own. Thankfully, heres a list of five home buying costs you should know about before unpacking in a new residence.

Earnest Money Deposit - An earnest money deposit is basically where you put your money where your mouth is. Its usually expected that a potential homeowner pay at least one to two percent of the total property cost as a deposit.

Escrow Account - Mortgage companies set up escrow accounts to make sure a potential homeowner has the reliable funds to pay for a home. Whether covering taxes and the mortgage insurance, this amount depends on the type of loan, location, and business dealt with the lender.

Inspection - An inspection confirms that the home not only looks great, but makes sure theres no cracks, leaks, or possibility of pests living inside the home.

Appraisal - An appraisal is information needed by the loan company, so lenders have an idea of the fair value of the property being purchased.

Credit Check - A credit check is mandatory. Although may are free, a loan company will check all three. This is relatively inexpensive compared to buying a home.

Now these are just a handful of issues youll encounter when buying a new place, but contact a Chicago realtor for a Chicago condo for more information.