What to Expect for Closing Costs

Closing costs will generally range from 2 -3% of the purchase price depending on the price point of the property and a number of other factors. The following estimates apply to the city of Chicago, but will be similar for most nearby suburbs. Almost all of these costs are paid at the time of closing.



  1. Origination Fee: Internal fees a lender charges for underwriting and processing the loan. This fee is usually around $1000.
  2. Third Party Lender Charges: Costs for the appraisal, credit report, and flood certification. These fees are typically around $350.
  3. Condo Certification Fee: If the subject property is a condo, the lender must approve the condo project and will require certain documents from the condo association. The majority of non self-managed condominiums charge a fee to complete forms and provide documents. Cost is usually $75-$250.
  4. Escrow Accounts: The account held by the lender containing funds used to pay the property tax bill and insurance premium on a property. The amount of funds held up front by the lender depends on when the next property tax bill or insurance premium is due.


  1. Title Insurance: Insurance that protects the lender (lender’s policy) or buyer (owner’s policy) against loss due to disputes over property ownership. The buyer will purchase the lender’s policy and pay the closing fee. The seller pays for the owner’s policy. Title charges are usually around $2200.
  2. Recording Charges: The purchaser will pay the cost to record the mortgage and deed with the Recorder’s Office. Cost is usually around $135.


  1. Transfer Stamps: The city of Chicago transfer taxes are paid by both buyer and seller. The buyer portion is $7.50 for every $1000 in purchase price.
  2. Attorney: The purchaser will select an attorney to represent them in their real estate transaction. The cost of the attorney is usually $500-750.
  3. Property Inspection Fee: The buyer will select an inspector to perform an inspection of the property under contract. The cost of the inspection is usually $300-$450 for a condominium and $350-$700 for a single family home. Fee will depend on inspector and size of property.
  4. Survey: Contracts for single family homes or multiple unit buildings require the seller to provide a survey. The seller usually pays for the cost of the survey, but in some circumstances, this may be a buyer cost. The cost of a survey is $250-$350. Surveys are not required in the sale of a condominium.
  5. Prepaid Interest: At closing, the lender will collect per-diem interest from the date of closing through the last day of the month. The first full mortgage payment will not be due until the following month. For example, if a buyer closes on April 25, the first mortgage payment will be due on June 1. However, the buyer will pay the interest for the 25th through the 30th of April at closing.
  6. Prorations: At closing, certain prepaid expenses relating to the ownership of the property will be prorated between seller and purchaser. Taxes in Chicago are paid in arrears and are almost always subject to a tax proration. Depending on the closing date, the condo assessment may also be prorated. All prorations are handled by the real estate attorney.
  7. Condo Move-In Fees: Some condo associations charge move-in fees that may or may not be refundable. Costs range from $50-$500.
  8. Homeowner’s Insurance:
  • Single family home and multi-unit: The lender will require the buyer to pre-pay an insurance policy (with mortgagee clause) for the first year. The cost of this policy varies depending on individual insurance companies and the content of the home.
  • Condominiums: The condo association will purchase insurance on the building. The buyer will need to purchase condo insurance to cover their individual unit. At closing, the buyer will need to show proof of both types of coverage.

Please feel free to contact us if you have any questions.

  • H Bergren
  • Holly Bergren
    Dream Town Realty
    4553 N. Lincoln,
    Chicago, IL 60625
    Office: (773) 490-1108
    E-mail: holly@dreamtown.com
  • M Kreuser
  • Michael Kreuser
    Dream Town Realty
    4553 N. Lincoln,
    Chicago, IL 60625
    Office: (312) 952-7884
    E-mail: mkreuser@dreamtown.com