How Much Does a Closing Typically Cost in Illinois?

Closing costs in Illinois are the fees charged by lenders and third parties during the closing of a real estate transaction. These charges may differ based on the loan type, the lender, the location of the property, and other elements. 

However, some common fees are typically charged in Illinois.

These costs consist of commissions paid to real estate agents, home appraisals, taxes, title-related fees, filing fees, and other costs payable when your transaction is completed.

Learn more about closing costs in Illinois for a first-time home buyer.

The seller has accepted your offer, your financing has been approved, and you are eager to move into the home you’ve found. However, you will need to make one more payment before getting the key: the closing costs.

Who Pays Closing Costs in Illinois?

Both buyers and sellers split the closing cost, but sometimes, the buyer is responsible for the bulk. As a home buyer, you are advised to request the seller to cover closing costs, but there is no guarantee they will.

The seller’s payment of a percentage of the closing costs is called “seller concessions.” These allowances can help cash-strapped homebuyers, but there is a limit to how much a seller can provide to cover closing costs.

Sellers may only contribute a certain amount of your mortgage value based on the mortgage loan type, occupancy, and down payment.

What Are the Closing Costs in Illinois?

According to Rocket Mortgage, the usual closing costs for buyers in Illinois can represent up to 6 percent of the home’s selling price.

In light of this, closing costs for a $400,000 mortgage should fall between $6,000 and $12,000.

You may be required to pay certain closing costs in Illinois depending on the type of loan you obtain and where you live.

In Illinois, you should select a licensed mortgage company to help you with the transaction, whether you’re buying or selling a property.

How Much Does a Closing Typically Cost in Illinois?

Closing costs on average ($6,529.74 with taxes included)

$4,893.99, without taxes, is the average closing cost.

When you sit down at the closing table as an Illinois first-time homeowner, you must pay closing costs to complete the sale of your property.

The good news is that closing costs could be reduced.

For instance, you may ask the seller for a closing-cost credit. Even if you include those fees in your mortgage, you still have to pay less at closing.

Additionally, you are free to decide to end the month (or as close to the end of the month as you can). If you close on the sixth, you must pay prepaid interest for 24 or 25 days.

If you closed on the 28th, you would only owe for two or three days. The closer to the end of the month, the less money you need to bring to the table since you will pay less in prepaid interest.

Finally, your VA loan may qualify you for benefits if you are a veteran or active military member.

When Are Closing Fees Payable?

The closing of a real estate deal occurs when ownership of the property passes from the seller to the buyer.

It’s time to pay the closing costs after doing your due diligence, passing the inspection, and agreeing on a price. In Chicago, buying or selling a house may be challenging and include a seemingly endless list of duties.

You must sign many papers as a buyer and provide a sizable check for the down payment and additional closing charges.

Buyers are occasionally surprised by the closing charges and may give over thousands of dollars without fully comprehending what they are doing.

Working with an experienced mortgage company is essential for this and other reasons. You can even end up saving thousands of dollars.

Conclusion

Closing costs in Illinois can vary depending on some factors, but generally speaking, they can range from 2-5 percent of the total purchase price of a home. Home buyers should be aware of these costs and factor them into their overall budget when considering a home purchase. Additionally, it is important to work with a qualified real estate agent who can help negotiate favorable terms with the seller, which can help reduce the overall transaction cost.

Contact Your Oak Lawn Mortgage Specialist Today!

MidAmerica Bancorp, Inc. offers a variety of mortgages with low down payment options for first-time and seasoned homeowners. These include jumbo, conventional, FHA, and VA mortgages. We are licensed in Oak Lawn, Burbank, Hickory Hills, Chicago, or throughout the states of Illinois, Indiana, Florida, Michigan or Wisconsin. To learn more about a mortgage loan, contact us at (708) 237-4050!