Customary Expenses When Purchasing a Home in Illinois

I.    Paid in advance of closing:

        A.  Earnest money   (Negotiable – typically $1000 to 5% of purchase price,
             depending on price and other considerations)

        B.  Home inspection ($300 to $500)

        C.  Lender’s application fee ($300 to $400)

        D. First year’s homeowner’s insurance policy (Approx. .2% of purchase price, 
             or $800 for a $400,000 home; confirm with your insurance provider)

II. Paid at closing:

        A.  Balance of down payment 

        B.  Title and recording fees ($600 to $1200 depending on price)

        C.  Attorney fee ($400 to $600; consult your attorney)

        D.  Lender’s charges (total: 2-3% of loan amount)

                    Note:  Lender's charges may be called points, service charge, credit and
                    appraisal fee, documentation fee, and various other terms depending on the
                    lender.  Your lender will give you a "good faith estimate" of all financing
                    related costs at the time of application.

        E.  Transfer stamps:  State and county transfer stamps are paid by sellers in
              Illinois, but some municipalities have also instituted transfer taxes payable by
              buyers, typically in the range of $1 to $4 per thousand of sale price.  Confirm
              with your agent or attorney.

All purchase costs listed above are estimates.  They are a function of many factors including the purchase price, amount and type of financing, date of closing, items negotiated with seller, and fees charged by your lender.  Most purchase costs are associated with the financing. Once most of the above variables are determined, your lender can give you an estimate of all financing costs, and your attorney can estimate all the others.