Buyers Costs
Costs Associated With the Purchase of a Home
Property Inspection - Approximately $250 - $400.
Closing Points - A percentage of the loan which is a one-time charge by the lender at the time of closing to buy down the monthly interest rate.
Private Mortgage Insurance (PMI) - Insurance required by the lender if the loan exceeds 80% of purchase price. The amount will be approximately 0.5% paid at the time of closing and an additional 0.04% added to the monthly mortgage payment.
Application and/or Appraisal Fee - Charged by the lender. Averages $350 - $450 (more for higher-priced properties).
Document Preparation and Recording Fees - To prepare the mortgage and record the deed and title. Averages $150.
Chicago Revenue Transfer Stamps - $7.50 per $1000 of the purchase price.
Lenders Title Insurance - Averages $250.
Attorney's Fee - Averages $400 - $700, or hourly rate.
Tax Reserve Fund - Equal to 2-6 months taxes (only if required by lender).
Homeowner's Insurance - Condos: A Certificate of Insurance must be obtained from the association's insurance carrier and an original brought to closing. Other properties: Buyer must obtain Homeowner's Insurance.
Cashier's Check or Certified Check - For the total amount due at the time of closing (attorney or title company to provide figures).
