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Closing Cost for Chicago

Closing Cost for Chicago

Closing costs will generally range from 2 -3% of the purchase price depending on a number of factors. The following estimates apply to the city of Chicago, but will be similar for most of the suburbs such as Wilmette and Winnetka Real Estate Closings. 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: Whenever  there is a transfer of title to real property or an assignment of Benefcial Interest in land trust, state, county, and municipal transfer tax stamps must first be purchased and affixed to the deed be the document can be recorded. Stamp varies from each city. Wilmette, Winnetka, and Chicago closing transfer stamps are as follow:
  2. Wilmette Transfer Stamp

    • Buyer(s) pays
    • Buyer(s) pay State tax
    • Buyer(s) pay County tax
    Winnetka Transfer Stamp

    • Buyer(s) pay State tax
    • Buyer(s) pay County tax
    Chicago Transfer Stamp

  3. Seller(s) and Buyer(s)
  4. Buyer(s) pay State tax
  5. Buyer(s) pay County tax
  6. Attorney: The purchaser will select an attorney to represent them in their real estate transaction. The cost of the attorney in Wilmette, Winnetka or Chicago range from $500-$1,000. Depending on the transaction, typical closing can usually take 45 days. Other real estate transaction may require more attention.
  7. 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-$1,000 for a single family home. Bigger luxury homes with more square feet take more time to inspect.
  8. 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.
  9. 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 1st.
  10. Pro-rations: 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 pro-rations are handled by the real estate attorney. It more desirable for a seller to see 100% tax proration on a contract and for buyer(s) should hope to get 110% to account for any increase in taxes.
  11. Condo Move-In Fees: Some condo associations charge a condo move-in fee that may or may not be refundable. Costs range from $50-$500.
  12. 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.
  13. –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.

    You mortgage lender or attorney will provide you with a fair estimate of the closing cost for Wilmette, Winnetka, and Chicago real estate purchase.

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