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Closing Cost Description:
When purchasing or refinancing a property in the City of Chicago, there are fees associated with the closing of the transaction. Some of these fees are paid for by the buyer, some are paid by the seller and all of these fees vary. Additionally, a portion of the fees are relative to purchase price and others are flat fees based on services received or depending on what company you are using.
All City of Chicago closing costs are finalized by a settlement agent or Title Company. An attorney is recommended to facilitate most transactions and will review the numbers for accuracy. The law requires all lenders to provide buyers with an estimate of the closing costs within three business days of receiving the application. The lender is also required to provide more detailed numbers three business days prior to the actual closing. Any Pearson Realty Group agent can help a buyer or seller estimate their specific closing costs prior to listing their home, making an offer, or closing.
City of Chicago Closing Cost Numbers:
- Initial Earnest Money (will count towards down-payment or cash offer)
- Down Payment or Cash Purchase Price
- Credit Report Fees
- Loan Origination Fees (Fee for originating, processing or underwriting your loan)
- Attorney Fees (typically charged at closing and only if the closing occurs)
- Escrow Deposit (typically lender required if they pay for taxes or property insurance or mortgage insurance)
- Appraisal Fee
- Survey Fee (shows you and the lender the subject property boundaries)
- Inspection Fees (for inspections requested by your or the lender)
- Discount Points (fees to pay down your interest rate upfront)
- Title Insurance and Title Search Fees (to ensure what you are buying is more than a piece of paper and actual property)
- City of Chicago Transfer Tax (0.75% of purchase price)
- Unpaid Taxes (this will be estimated since last years taxes have not been billed yet)
- Repair or Closing Credits (negotiated pre-closing or prior to closing inspection contingency)
- Title Fees ($1,200-$3,000 for $100,000-1,000,000 sales price plus miscellaneous fees)
- FOR A QUOTE CALL NOBLE TITLE AGENCY 312-909-9704
- Realtor’s Commission
- Attorney Fee
- Transfer Tax (City of Chicago $1.50/$500, Cook County $0.25/$500, State of IL $0.50/$500)
- Existing Loan Payoffs
- Survey Fee
- HOA Transfer Fees
Typically, these closing cost fees are estimated anywhere from 2%-5% for buyers and 7-10% for sellers in the City of Chicago. Pearson Realty Group recommends having an attorney review prior to closing. Keep in mind that some of these fees can be split in different categories or labeled differently. It is always smart to request an estimated settlement statement prior to closing any contingency periods in your purchase and sale contract.
Are These Fees Negotiable?
A portion, if not all fees, are negotiable to a certain degree. Whether or not your lender changes the fees or pays on your behalf, one should always ask if there are better pricing. 3rd party fees are sometimes not negotiable.
Can I Finance These Costs?
Before placing an offer, discuss with a lender or your agent your estimated costs to close. Many buyers only estimate down payment amounts, but sometimes this can be even less than the buyer’s closing costs. Depending on the down payment percentage, certain lenders allow a percent of these costs to be built into the loan. This means you will need to bring less cash to the closing table but your monthly payment will include a very small percentage of those closing costs (plus interest of course!).
For more information about the details of buyer or seller closing costs, contact a Pearson Realty Group Buyer’s Agent Here.