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Brad Wainwri…, Other/Just Looking in

How much should I save for closing costs on a 250k house with 10% down.?

Asked by Brad Wainwright, Thu May 26, 2011

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Ranj Mohip’s answer
Hey Brad. Oak Lawn doesn't have buyer transfer taxes, so your saving money there. I would say that you should have an additional 5% for closing costs. This is more than you will need, but it's always better to have more money than not enough. If you are asking the seller to credit you 2.5% for closing costs, you will need only 2.5% out of your pocket.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember, consult the best real estate attorney in Chicago or in your respective area.
4 votes Thank Flag Link Fri May 27, 2011
Depends on the type of loan you'd be getting and whether your buiyer broker can negotiate the seller contributing to your closing costs. The easiest way to get a good idea of how much closing costs may run is to sit down with a local lender in your area and ask to be pre-approved and for a Good Faith Estimate.

A rough number would be $4000 - $5000 including your inspections, attoreny, appraisal, filing fees, origination fees, title insurance, homeonwers insurance, tax and insurance escrow funds etc.
1 vote Thank Flag Link Fri May 27, 2011
I would say about $5,000. Your lender should able to tell you exactly how much.
0 votes Thank Flag Link Wed Aug 19, 2015
Remember in most of Illinois the seller gives the buyer a tax credit at closing, helping reduce the total funds owed at closing.

On a recent purchase on a $270k home in Kendall County, Illinois, total settlement charges came out to $7,475 - escrow reserves being $2,500 of it, 1st year of insurance insurance + pre-paid interest another $1,500.

There was also a seller tax credit of $7,500 which spanned from 01/01/10 to 10/15/10.
0 votes Thank Flag Link Fri May 27, 2011
I hear the 3% figure a lot, but I think that's on the high side. Your lender or mortgage broker should be able to give you a Good Faith Estimate (GFE). A lot depends on your lender's fees (how much do they charge in origination fees)? Also think about pre-paid expenses for taxes, HOA dues, insurance, etc. If you're looking in an area with high taxes and HOA dues then closing costs will be higher.
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0 votes Thank Flag Link Thu May 26, 2011
Closing Costs normally run about 3%: However there are certainly exceptions, some are fixed costs and some are percentages. Also, you could negotiate with the Seller or even the lender to pick up some. In addition, some lenders have a schedule and even maximums that you should pay. Talk to your Title Company, they are an excellent source and they are working for you. (ps. The Closing Costs do not vary with the down payment.)
0 votes Thank Flag Link Thu May 26, 2011
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