Closing Costs in Illinois
The Chicago Tribune published an article today on
the topic of closing costs. According to a recent study,
closing costs average $3,500 in Illinois. This would be
for purchases which required financing. For cash transactions,
closings costs dropped down to about $2,000.
So keep this in mind when you are getting ready to submit
an offer to purchase real estate. If you are using financing,
you will have to bring about an extra $3,500 to the closing table.
This is in addition to your down payment!
I would suggest asking the seller to contribute 3% towards
your closing costs. This will help reduce your “out of pocket”
expenses. When I say “ask the seller”, I mean have your
Realtor write that in the contract. It doesn’t hurt to ask.
Many buyers don’t have enough cash saved up to cover
a down payment AND closing costs.
Be sure to ask your lender how much they will allow the
seller to give back at closing to cover your costs. Some
programs allow up to 6% back. But be careful, the more
you ask for, the less likely the seller is to accept your offer.
The seller is looking at their bottom line. They might feel
that giving back 6% is too much. I have had success with
asking for 3% back for some of my previous valued clients.
If you are submitting a cash offer, I probably wouldn’t ask
for any closing cost credits. Just subtract $2,000 from the
amount you are willing to spend on the property. The result
would be your maximum purchase offer amount.
Closing costs can cover fees like:
Title Search Fees
Title Insurance
Appraisal Fees
Attorney Fees
Survey
Termite Inspection
Home Inspection Fees
Wire Transfer Fees
Loan Origination Fees
Loan Points
Loan Application Fees
Property Insurance
Notary Fees
Document Preparation Fees
Transfer Tax Stamps
etc.
Each title company and lender have their own specific fees
that they charge. So, your actual closing costs will vary.
But just keep the average costs in mind and you should be OK.
Until the next time,
Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!
Visit me online: www.773property.com
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