WHEN BUYING A PROPERTY IN THE CITY OF CHICAGO, THERE ARE FEES ASSOCIATED WITH THE CLOSING OF THE TRANSACTION.
Some of the fees are based to purchase price and some are flat fees based on services received. I have listed below the most common closing costs for buyers: however, these fees can vary and additional fees may be incurred, based on the services provided.
BUYERS CLOSING COSTS
During your loan application, your lender will provide a Good Faith Estimate disclosure detailing costs associated with closing the loan.
LENDER REQUIRED FEES:
Appraisal and Credit Report Fee: An appraisal can range from $200 - $500 or more depending on type or size of property. Credit reports can range from $16.00 to $32.00 or more depending on number of borrowers or updates needed.
Underwriting and Administrative/Processing Fee: Lenders incur costs for Automated Underwriting Service, staff underwriters other processing functions. This charge can range from $275 - $450.
Document Preparation or Service Fee: Cost for closing document package preparation thru a
document company. Fee can range from $150 - $250.
Tax Service Fee: One-time fee of $75 - $100 to search tax records annually to verify that real estate taxes were credited to the correct account at the county.
Pre-Paid Interest: Interest is due on the loan from the day of closing thru the last day of that month.
The first payment is due 30 days later and will pay the preceding month’s interest.
Homeowner’s Insurance: If not covered by association, the buyer will be required to provide a one year pre-paid homeowner’s insurance policy with the lender listed as “loss/payee.”
TITLE INSURANCE, RECORDING FEES AND TRANSFER STAMPS:
Title Fees: The buyer pays for a Lender’s Title Policy, insuring the lender’s lien position. The fee can range from $500 - $650. In addition, the title company may charge “endorsement” fees to the title policy for different types of loans or property. These can range from $50 -$100 each.
Settlement or Closing/Escrow Fee: The settlement agent will charge a fee for handling the funds
during the closing. This can range from $400 - $600.
County Recording Fees: Mortgages and deeds sent for record keeping to the County Recorder’s Office.
The fee is $26 for the first 2 pages and $2 for each additional page. On a purchase, the deed and
mortgage recording costs average $125-$150.
Transfer Stamps: Buyer’s pay, to the City of Chicago, a fee of $7.50 per $1,000 of purchase price.
POSSIBLE ADDITIONAL COSTS:
Attorney Fees: Attorney representation is the choice of the buyer. Fees can range from $500 -$1,000 or higher.
Home Inspection: Buyers can arrange a home inspection. Fees can range from $300 - $500 or more.
This information is provided is correct to the best of our knowledge and belief, but is provided without obligation or guarantee.
Please consult your tax or legal professional with questions about any specific transaction.