What are the typical Buyer costs for a residential closing?

  • Purchase price
  • Lender’s fees. Unless you are borrowing “interest free” money from a generous friend or relative, there are always costs involved in financing. Early in the process, your lender will provide you with a good faith estimate of fees, including “points” (also called a loan origination fee or loan discount), and various other fees such as appraisal, application, credit report, document preparation, courier and tax service fees. Some of these fees may be paid before closing.
  • Prepaid mortgage interest. The monthly interest on mortgages is paid in arrears. Therefore, your first full payment of principal and interest will not be due until the first day of the month following the first full month after the closing. However, the lender will charge a per diem mortgage interest charge at closing. This comprises the period from the day of closing through the end of the month. For example, if you close on December 27, five days of mortgage interest will be paid at closing. However, your first regular principal and interest payment will not be due until the first of February.
  • Title insurance fees. A title insurance lender’s policy and title company escrow fee, and any title policy endorsements which your lender requires.
  • Municipal real estate transfer tax. Municipalities such as Chicago, Wilmette, Niles and Lincolnshire, require the Buyer to pay a municipal real estate transfer tax.
  • Lender’s escrows. Lender’s escrows (if required) typically include real estate taxes, homeowner’s insurance and “PM” (private mortgage insurance).
  • Recording fees. The Buyer pays for the recording of the Deed, any Mortgages (purchase money and home equity) and any Assignment of Rents or Assignment of Mortgage.
  • Prepaid condominium assessments. Newly constructed condominiums may require you to pay this assessment to the association reserve along with a prorated balance of the monthly assessment.
  • Homeowner’s insurance.
  • Attorney fee.

What are the typical Buyer credits for a residential closing?

  • Earnest money.
  • Principal amount of mortgage loan (s).
  • Unpaid real estate taxes and proration for the current year.

What are the typical Seller costs for a residential closing?

  • Title insurance owner’s policy. This is the Seller’s cost of title insurance and is based upon the sale price.
  • Current survey.
  • Real estate transfer tax payable to the State, the County and, in some cases, to the Municipality.
  • Loan payoffs and costs of overnight delivery or wire transfer of payoffs.
  • Recording fee or record of payment fee for mortgage releases;
    Real estate tax prorations. In Illinois, real estate taxes are paid in arrears. For example, in 2007, we are paying taxes for 2006. At closing, the Seller must pay all tax bills that are currently payable and give a proration for all projected real estate taxes through the date of closing.
  • Real estate brokerage commission.
  • Attorney fee.

What are the typical Seller credits for a residential closing?

  • Purchase price.
  • Any prepaid items, such as condominium assessments or water bills.