Closing Costs

Typical Buyers’ Closing Costs

Some or all of the following may be charged by a lender.  The amounts will vary and in some cases are not reasonable.  The term “points” refers to a percentage point of the loan and is often identified as an origination or service fee.  Points are more customary with the refinance of a mortgage, buying down the interest rate or when the borrower has poor credit history.

1. Lenders Charges- cost varies significantly between lenders

  • Processing Fee
  • Appraisal Fee
  • Credit Report
  • Application Fee
  • Underwriting Fee
  • Loan origination Fee/Loan Service Fee
  • Flood Certification Fee

2. Title Insurance
The buyer purchases title insurance for his/her lender.  Cost range $750 – $2,500.00

3. Private Mortgage Insurance
When the mortgage is larger than 80% of the property value, private mortgage insurance may be required.

4. Closing Fee
Title companies charge to handle paperwork for buyer’s lender and to act as a funds transfer agent.  Usually based on sale price.  Cost range from $500 to $1,750.

5. City Transfer Tax
Based on sale price.  The municipal ordinance will identify who pays the city transfer tax.  The parties, however, may contract to the contrary.  The following are examples of municipalities whose ordinance establishes that the transfer tax be paid by the buyer:

  • Naperville $3/$1,000
  • Chicago $7.50/$1,000
  • Bolingbrook $7.50/$1,000 (split between buyer and seller)
  • Wheaton $2.50/$1,000

Typical Seller’s Closing Costs

1. State and County Transfer Tax
$1.50 per thousand of sale price

2. Title Insurance
Illinois contracts generally require the seller to pay for a title search and title insurance for the buyer.  Cost is based on the sale price and varies slightly between title companies.

3. Plat of Survey
Approximate cost is $500 to $750

4. Real Estate Broker Commission
Varies depending on broker retained.

5. Attorney Fees
Varies between law firms.

6. Other possible costs

  • Termite Inspection
  • $60 to $80
  • FHA or VA charges
  • From $250 to a percentage of the sale price
  • City Transfer Tax
  • Based on sale price. Most municipalities impose the city transfer tax on the buyer. The contract between the parties actually controls who pays the tax.  The following are examples of municipal transfer taxes whereby ordinance the seller pays:

    • Aurora $3/$1,000
    • Bolingbrook $7.50/$1,000 (split between buyer and seller)
    • Glen Ellyn $3/$1,000
    • Woodridge $2.50/$1,000
  • Association Fees
  • Mortgage
  • In addition to the costs identified above the seller must pay off any mortgage(s) which are recorded on the property.
  • Real Estate Taxes
  • Unpaid real estate taxes must also be paid. Taxes in Illinois are paid in arrears; therefore, a proration of taxes from January 1 through the date of enclosing must always occur.

As experienced Real Estate Attorneys, we will advise you of your obligation assure that you pay only what is correct and proper.  Secure your future, call us now.