First-Time Home Buyers
Buying Your First Home in Edwardsville & the Metro East
A plain-English guide to buying your first home in Madison County, Illinois: the steps, what it really costs, the down payment help available, and the mistakes to avoid.
By Angie Daniels, Realtor®, RE/MAX Alliance · Updated November 2026
The Short Answer
How do you buy your first home in Edwardsville, IL?
- Check your budget and credit, and set aside savings for the down payment and closing costs.
- Get pre-approved by a local lender, and ask about Illinois and Madison County first-time buyer assistance.
- Choose a buyer's agent and sign a written buyer agreement before touring homes.
- Pick your communities by commute, school district, budget and the kind of home you want.
- Tour homes and make an offer with your agent's pricing advice.
- Inspect, appraise and review the contract, usually with a real estate attorney in Illinois.
- Finalize your loan and do a final walk-through.
- Close and get your keys.
Step by Step
The First-Time Buyer Process, Explained
Here's what each step looks like when you're buying in Edwardsville, Glen Carbon, Collinsville or anywhere else in the Metro East.
-
Know your numbers
Start with what you're comfortable paying each month, not the biggest loan you can get. Your payment includes principal, interest, property taxes, homeowners insurance and, with less than 20% down, mortgage insurance. Property taxes in Madison County average about 1.9% of a home's value per year, which is higher than the national average, so include them from day one.
Try the affordability calculator and the mortgage calculator to get a realistic range.
-
Get pre-approved
A pre-approval means a lender has reviewed your income, credit, debts and assets and will tell you how much they can lend. Sellers expect one with every offer. This is also when you ask the lender about first-time buyer programs, since they are applied for through approved lenders.
-
Choose your agent and sign a buyer agreement
Since August 2024, agents who use the MLS must have a written agreement with a buyer before touring homes. It spells out the services you'll get and how your agent is paid, and the terms are negotiable. Read it, ask questions, and make sure you understand it before you sign.
-
Pick the right community
Each town in the Metro East has its own price range, school district, commute and housing style. Start with the community guides and narrow it to two or three towns before you tour.
-
Tour homes and make an offer
Your agent will pull recent comparable sales so your offer is based on real numbers. Your offer includes the price, earnest money, the loan type, your closing date and contingencies such as inspection, appraisal and financing.
-
Inspection, appraisal and attorney review
A home inspection shows you the condition of the house before you're committed. The lender orders an appraisal to confirm the value. In Illinois, buyers commonly hire a real estate attorney to review the contract and handle the legal side of closing.
-
Final loan approval and walk-through
Don't open new credit cards, finance a car or change jobs while your loan is in underwriting. Shortly before closing, you'll walk through the home to confirm it's in the agreed condition.
-
Closing day
You'll sign the loan documents, bring your remaining funds by wire or cashier's check, and get your keys. Always confirm wiring instructions by phone with your title company. Wire fraud targets home buyers.
What It Costs
How Much Money Do You Need to Buy Your First Home?
You don't need 20% down. Most first-time buyers put down far less. The minimum depends on the loan program:
| Loan type | Minimum down payment | Good to know |
|---|---|---|
| FHA | 3.5% with a 580+ credit score | Flexible credit guidelines; includes mortgage insurance. |
| Conventional (first-time buyer options) | As low as 3% | Mortgage insurance can be removed once you reach enough equity. |
| VA | 0% | For eligible veterans, service members and some surviving spouses. |
| USDA | 0% | For eligible rural areas and income limits. Some areas outside city limits in Madison County may qualify. |
Your lender will confirm which programs you qualify for. Requirements can change.
Plan for these costs too
- Closing costs: commonly 2% to 5% of the loan amount, for lender fees, title, attorney, recording and prepaid taxes and insurance.
- Earnest money: a deposit with your offer that goes toward your purchase at closing.
- Home inspection: paid up front, usually before you're committed to the home.
- Moving and setup: utilities, moving costs and a cushion for the first repairs.
Down Payment Help
First-Time Buyer Assistance in Illinois & Madison County
Down payment assistance can cover part of your down payment and closing costs. You apply through an approved lender while getting your mortgage, so ask about these programs at pre-approval.
IHDAccess Home (statewide)
- Up to $15,000 for down payment and closing costs
- 0% interest, payment deferred until you sell, refinance or pay off the loan
- Paired with a 30-year fixed-rate mortgage
- Income limits apply (about $128,110 in Madison County at launch, depending on household size)
- Homebuyer counseling required
Madison County HOMEbuyer Program
- Up to $15,000 for down payment and closing costs
- 5-year forgivable loan with no monthly payment
- For low- and moderate-income first-time buyers
- Apply through a participating local lender
Who counts as a first-time buyer?
For most Illinois programs, you count as a first-time buyer if you haven't owned a home you lived in during the past three years. That means some past owners qualify again.
Program amounts and income limits change. Your lender will confirm what's available when you apply.
Where to Buy
Which Metro East Town Is Right for You?
Start with your commute, budget, school district and the style of home you want. Each community guide covers prices, schools, commute times and housing.
Avoid These
Common First-Time Buyer Mistakes
- Shopping before pre-approval. You may fall for a home you can't get financed.
- Forgetting property taxes. In Madison County they're a big part of the monthly payment.
- Draining all your savings. Keep a cushion for repairs and the first few months.
- Skipping the inspection. It's the best way to know what you're buying.
- New debt during underwriting. A new car or credit card can derail your loan.
- Not asking about assistance. Many buyers never hear about the programs they qualify for.
First-Time Buyer Questions
Frequently Asked Questions
How much do I need for a down payment on my first home in Illinois?
It depends on the loan. FHA loans require 3.5% down with a credit score of 580 or higher, some conventional loans allow 3% down, and VA and USDA loans can require 0% down for eligible buyers. Illinois and Madison County assistance programs can help cover the down payment and closing costs.
Is there first-time home buyer assistance in Madison County, IL?
Yes. The statewide IHDAccess Home program offers up to $15,000 in deferred, 0% interest assistance, and the Madison County HOMEbuyer Program offers up to $15,000 as a 5-year forgivable loan for eligible low- and moderate-income buyers. Both are applied for through approved lenders, and income limits apply.
Who counts as a first-time home buyer?
For most Illinois programs, you count as a first-time buyer if you haven't owned a home you lived in during the past three years.
How much are closing costs for buyers?
Closing costs are commonly 2% to 5% of the loan amount. They cover lender fees, title, attorney fees, recording and prepaid property taxes and insurance. Your lender gives you a Loan Estimate with the details.
Do I have to sign an agreement with a buyer's agent?
Yes. Since August 17, 2024, agents who use the MLS must have a written agreement with a buyer before touring homes. It explains the agent's services and compensation, and its terms are negotiable.
Do I need a real estate attorney to buy a home in Illinois?
In Illinois, buyers commonly hire a real estate attorney to review the contract and handle the legal side of closing. Your agent can recommend local attorneys.
How high are property taxes in Madison County?
Madison County's average effective property tax rate is about 1.9% of a home's value per year, according to U.S. Census data. Your actual bill depends on the town, school district and any exemptions you qualify for.
How long does it take to buy a first home?
Once your offer is accepted, closing on a financed purchase often takes about 30 to 45 days. The search before that depends on your timeline, budget and how many homes fit what you want.
Ready to Talk About Your First Home?
Whether you're a year out or ready now, I'll walk you through the process, connect you with local lenders who know the assistance programs, and help you find the right community.
This guide is general information, not legal, tax or lending advice. Loan programs, assistance amounts, income limits and requirements change; confirm current terms with an approved lender. Angie Daniels, Realtor® | RE/MAX Alliance · Equal Housing Opportunity.