Please contact your lender for a good faith estimate of all settlement costs as they vary per transaction. The majority of your closing costs will go towards taxes (transfer taxes in Chicago and Real Estate Tax Prorations). The title company or other entity conducting the closing will tell you the required amount for:
City/StateTax/Stamps (Buyer pays $7.50 per $1,000, Seller pays $1.50 per $1,000).
Loan origination fees.
Title co settlement fees.
Private mortgage insurance premium.
Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
Property tax escrow, if being paid as part of the mortgage (lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you).
Deed recording fees.
Title insurance policy premiums.
Prorations for your share of costs such as property taxes.
A Note About Prorations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.