How much money will one need to bring to closing? It is safe to assume 2%?

Asked by Trulia Chicago, Chicago, IL Wed Jan 30, 2013

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Manuel Brown’s answer
Manuel Brown, Agent, Chicago, IL
Thu Jan 31, 2013
Trulia Chicago,

Because every lender is different and depending on if a purchaser is actually purchasing in Chicago Proper or Chicago Suburban it can very. 2 to 3% would be a good estimate. The best way to be more certain is to work directly with a mortgage lender to determine as closely as possible the amount of money you will need to bring to closing.

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1 vote
, ,
Wed Jan 30, 2013
2% can be a fair assumption but it will really depend on which city you purchase in - Transfer Stamps and certain taxes are county and city specific and this can increase the funds due at closing. The purchase price and loan size will also affect the bottom line.
This is tough to generalize
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
1 vote
Luke Wojcik, Agent, Chicago, IL
Mon Feb 4, 2013
It depends, every transaction is different but generally 2-3%. Dont know the specifics of your deal but i you are financing have your agent try to have the seller pay for closing costs.
0 votes
Maja Brajic, Agent, Chicago, IL
Sun Feb 3, 2013
The most Lenders offers up to 3% of purchase price for closing cost.
Have your agent break down that for you.
Good luck,
0 votes
Riccardo War…, Agent, Bolingbrook, IL
Thu Jan 31, 2013
Heck no that is not a safe assumption. It is going to depend on several factors. Talk to the lender or broker and they should be able to let you know. If you have a specific situation, give me a call and I can chit chat with you about it. No fee, of course.

Sean Cochran
Quality Mortgage Lending
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Thu Jan 31, 2013
No that's not a safe assumption. It depends on the loan terms you're getting as well as the percentage you're putting down on the house. Additionally different states have different practices when it comes to who pays the transfer tax, what typical attorney or escrow agent fees might be etc.

When making a mortgage loan application your lender will supply what is known as a Good Faith Estimate this will let you know within a few hundred dollars what you will need to pay at closing. I would suggest that assuming the Seller isn't making any contribution to the buyers closing costs, that in addition to the amount the buyer is putting down on the house that the average closing cost expense is likely to be in the range of 3%, however there is in fact no average per se. Just as each property is different, each buyer and loan is different and it's best to speak to a lender to get a realistic idea of what to expect.
0 votes
Joe Schiller, Agent, Chicago, IL
Thu Jan 31, 2013
very good.. most people do not know that..
0 votes
Ivan Sagel, Agent, Chicago, IL
Wed Jan 30, 2013
3% is a better starting point to budget for. It is also possible to negotiate for the seller to cover some or all or the closing costs.

Best regards,

Ivan Sagel
0 votes
Bill J Delig…, Agent, Naperville, IL
Wed Jan 30, 2013
2% is a good starting point but every deal is different. Your Loan Officer can provide you with specific info on this.
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Jan 30, 2013
Its all relative to the city and purchase price. The best thing to do is have your lender break it down for you.
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David Hanna, Agent, Chicago, IL
Wed Jan 30, 2013
Not only are you going to bring the fees, transfer taxes and fees for the closing itself, you may have to bring past due HOA assessments (short sale and foreclosure condos), money for personal property you buy as part of the sale not on the contract (furniture, fixtures, etc) and funds for escrowed taxes.
We usually say 3%, and you will get numbers both as the closing gets closer and within the last day or two of the closing.
All of this on top of whatever balance of down payment you need for the loan, less the credit for any earnest money you provided.
0 votes
Philip Sencer, Agent, Chicago, IL
Wed Jan 30, 2013
Your lender is required to give some of the figures. Your agent can give an approximation and your attorney can give you the most accurate $$. It can depend on how the contract is written and in which city the property is in
0 votes
Dino Hasapis, Agent, Chicago, IL
Wed Jan 30, 2013
Ask your loan officer, don't make assumptions.
0 votes
Ryan Gossett, Agent, Chicago, IL
Wed Jan 30, 2013
What is the price point? Your biggest closing cost is transfer stamps at $7.50/$1k.
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