BORROWER'S CLOSING COSTS
The following is a list of typical closing costs associated with the purchase of your home or refinance of your mortgaged loan. In the city of Chicago, closing costs approximate 2.5% of the purchase price if you are getting a mortgage. Please remember these are estimates only. Your attorney and lender can give a more accurate figure, based on the loan you may be getting.
Loan Application Fee
Paid to Lender to cover appraisal and credit report
Condo or Single Family $350-400
Two-Four Unit Building $450-550
Additional Credit Report for non-spouse co-buyer $50.00 each
Points or Loan Origination Fee or Loan Discount Fee
Paid to lender at closing, calculated as a percentage of loan amount (i.e. - 1 point equals 1% of loan amount) Many loans are offered without this cost. Often, you can buy down your rate, if you want to pay points up front. Talk to your lender about your options5
Private Mortgage Insurance (PMI)
Paid to mortgage insurance company: required when the loan to value is greater than 80% (approximately .45% of loan amount annually) This varies greatly depending on the type of loan that you are getting. The more you put down, the lesser the cost of your PMI insurance. FHA loans have mortgage insurance, too. There is an initial cost at closing and then there is a monthly cost added to your payment.
Interest on the note paid to lender from the date of the closing through the end of the closing month. This cost is determined by the day of the month that you close and your principal and interest cost.
Underwriting Fee $150-200
Charged by the lender to underwrite borrower's file
Processing Fee $75-125
Paid to mortgage broker to process loan and reimburse miscellaneous out-of-pocket
expenses including messenger fees and overnight delivery costs.
Document Preparation Fee $75-100
Charged by lender to prepare loan documents.
Tax Service Fee $60-100
Charged by the lender to obtain real estate tax bills and monitor payments of real
Lender's Title Insurance Policy
Required by lender and paid to the title company to insure lender's interest inn property is first mortgage: certain endorsements to policy may also be required by lender. This cost will vary as it depends on the value of the property and the mortgage. Your attorney will provide you with this estimate.
Agency Closing Fee $100-300
Paid to title company to act as lender's agent in handling closing
For purchases only, transfer taxes vary by local ordinance. Check with your attorney to determine if the suburb you are buying in has a buyer paid transfer tax.
(In Chicago Buyer pays $7.50 per $1000 of purchase price, Seller pays the State and County tax)
Typically required by lender to insure payment of real estate taxes, insurance and private mortgage insurance. Amounts vary by month of closing.
For purchase, typically provided by SELLER, not a buyer cost.
For refinance, new survey is required unless previous survey is less than five years old and no improvements were made.
Surveys are not required for condominiums.
Attorney Fees $300-650
Payment to legal representative to handle closing and review contract and loan documents.
Recording Charges $60-150
Charged by recorder's office to record mortgage and deed (purchase) or release (refinance).
Condominium Board Fees
Depending on the condominium building, some management and condominium boards have fees that are required to be paid by the buyer before they will provide information. In addition, ask the listing agent if there are any fees required prior to move-in. Often with condominiums there is a "sale packet" that provides the information about fees, and refundable deposits.
After your contract is accepted, you will likely hire a home inspector to confirm the condition of your future home. Those costs vary depending on the property type. this is not the same as the appraiser that determines the value for your lender.
These costs are typical of a home purchase in Chicago. Closing costs vary according to property type, and municipality. If you are in other parts of the State or in another State, you will need to check with your local professionals.
SUMMARY: I hope you found this information helpful. Only your lender and attorney will have accurate closing costs. You will get an estimate when you make your loan application, but this will change based on the variables mentioned here. Your attorney will provide you with an amount to bring to your closing, usuallly right before closing. Please feel free to contact me if you have any other questions.
Connie Abels, Broker
773-353-9180 direct line 773-442-2357 for text