What are the closing costs on a condo in Chicago?

Asked by Henry, 10023 Thu Jan 10, 2008

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5
Thomas Hall, , Chicago, IL
Thu Jan 10, 2008
Hi Henry:

You may be responsible for the following expenses:

Attorney’s fees - $400 - $700
Property Inspection - $250 - $400
Lead Pain Inspection - $200 - $350 (may not be required)
City of Chicago Transfer Tax - $7.50 per $1,000 of purchase price
Homeowner’s Insurance Varies
Settlement of Escrow Closing - Paid to the title company to handle closing $175 up to $100,000 plus
$.50 for every additional $1,000
Costs Associated with Lender: $250 - $400
Loan Application (& Appraisal) For current taxes not yet paid or due
Closing Points or Loan Origination Fee 1 – 3% of loan (Optional)
Private Mortgage Insurance (PMI) - Discuss with lender Required if loan amount is less than 80% of purchase price
Underwriting Fee $250 - $500
Document Preparation or Recording Fee $100 - $150
Flood Certification Fee $20 - $40 (most likely not required for condo - depends upon the type of building)
Lender’s Title Insurance Policy $150 - $400
Tax Service Fee (if taxes held in escrow) Reserve Fund for Tax Escrow $50 - $100
2 – 7 months prepaid real estate taxes (may be received as credit from seller)
Prepaid Interest Interest on loan from closing date to end of month

Hope that helps!
4 votes
Jeffrey Kropp, Agent, Chicago, IL
Tue Jan 29, 2008
I agree with the others, the big cost in Chicago is the buyer transfer stamp which is being raised. You are looking at $4,000 to $6,000 all told, but most of that can be wiped out by a seller tax credit (the credit you will recieve from the seller for 2007 taxes that come due in 2008). Also, for most of my buyers I negotiate a seller paid closing cost credit so you can walk away from the table with some money in some cases.
Web Reference:  http://www.1sthomegroup.com
3 votes
Mwass, , Chicago, IL
Wed Jan 16, 2008
Thomas has given you a pretty good over-view of the costs. I'd respectfully suggest that the title company charges are a bit on the "light" side. The title insurers have been raising their rates over the last couple of years.

Here's my take -

Lenders Title Insurance Policy - $825 for a property costing $100,000 or less. Add $20 for each additional $10,000 - details at http://www.wasserlaw.net/Real%20Estate/Title%20Rates.htm
Title Search Update / Later Date Fee - $75.00
Title Endorsements - $125 each. This varies depending on the type of loan and property you are buying, but figure $250 total
Escrow Closing Fee $450 for that $100,000 property, plus $50 for each $50,000 (more or less)
$3 state registration fee for title insurance
$106 recording fee for deed & mortgage (variable based on the number of pages)
$50-75 delivery fees
Municipal Transfer taxes vary - details at http://www.atgf.com/member/transferTax/default.asp

Your mortgage lender is required to give you a good faith estimate of closing costs. Invariably, they are also light on the title company charges.

Your lawyer should be able to help you "refine" that good faith estimate.

cheers!
1 vote
Alan May, Agent, Evanston, IL
Fri Jan 11, 2008
Excellent rundown of potential closing costs, Thomas.... I'm just commenting here, so that Henry can give you the "best answer".
1 vote
Thomas Hall, , Chicago, IL
Sat Jan 12, 2008
Elvis - thankyew - thankyewveramuch
0 votes
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