Before You Buy: 2024 Chicago Closing Costs Guide

Apr 24

Closing costs are a key step to purchasing any property in Chicago, whether it’s your first time or you’re a real estate regular.

Watch out for these common closing costs during your next home purchase…

Experts recommend putting **2-5% of your purchase price** aside for closing costs, as well as other potential expenses like those in our Chicago cost of living guide.

2024 Chicago Closing Costs - Fees

Loan Application Fee - $250-500

Financing your next Chicago home purchase means applying for new loans, with the average loan application fee being between $250-500.

Appraisal Fee - $490-1,040

Getting an appraisal for your next home will set you back anywhere from $500 to $1000 in Chicago as of 2024, with the average appraisal fee being around $750.

Escrow Fee - $1,650

The escrow fee starts at $1,650 in Chicago as of 2024, and can vary depending on the asking price of the property and surrounding neighborhood.

Underwriting Fee - $750-1,000

The underwriting fee costs around $750-1,000 in 2024 depending on your lender, and covers evaluation of loans or insurance policies for your Chicago property.

Processing Fee - $150

The processing fee is approximately $150 in 2024 depending on your loan provider, and covers the loan financing for your Chicago home purchase.

Inspection Fee - $350 per Visit

The inspection fee is about $350 per visit in Chicago as of 2024, and is a must have for any property you’re seriously considering buying.

2024 Chicago Closing Costs - Deposits

Escrow Deposit - $1,650

Your escrow deposit in Chicago will cost about $1,650 as of 2024, and includes up to two months of advance payments on property tax and mortgage insurance.

Homeowner’s Insurance Deposit - $2,945

You’ll be expected to pay a year of homeowner’s insurance up front at closing, with homeowner’s insurance costing $2,945 annually in Chicago as of 2024.

Owner’s Title Insurance Deposit - $3,640

Owner’s title insurance averages $3,640 in Chicago as of 2024, paid as a one-time deposit offering lifetime protection from legal encroachments.

Prorated Taxes - $3,154

Prorated taxes cost an average of $3,154 in Chicago as of 2024, and covers unpaid utility bills, assessments, and proration of a property’s most recent tax bill.

Talk with your realtor and mortgage provider about whether rolling some closing costs into your mortgage policy fits your needs better.

2024 Chicago Closing Costs - Other

Real Estate Transfer Tax - 2% of Property Value

As of 2024, your real estate transfer tax will cost about 2% of the value of your next Chicago property. This includes both city-wide and state taxes for real estate purchases.

Down Payment - 15-20% of Property Value

Your down payment for a Chicago property in 2024 will often range from 15-20% of the property’s valuation, and is typically negotiable depending on your needs and financial situation.

Closing costs can vary depending on the Chicago property you’re looking to buy, especially with recent changes in the 2024 Chicago real estate market. Get your next Chicago property without overspending on closing costs by talking to our real estate experts today.