How Much Are Closing Costs in Illinois?

If you’re buying or selling a home in Illinois, knowing your closing costs ahead of time helps avoid surprises and keeps your budget on track. Here’s a clear, friendly guide for buyers and sellers across the Prairie State.

What Are Closing Costs?

Closing costs are fees paid at the completion of a home purchase or sale. They’re separate from your down payment and include lender charges, title services, taxes, and prepaid items.

Closing Costs for Buyers in Illinois

Buyers typically pay 2%–5% of the home’s price in closing costs.

Example: For a $400,000 home, closing costs generally range from $8,000–$20,000.

Common Buyer Closing Costs Include:

Loan origination and lender fees
Appraisal and credit report
Title insurance (usually buyer-paid in Illinois)
Recording fees
Survey fees (if required)
Prepaid insurance and taxes

Illinois property taxes vary widely, so escrowed taxes can make up a large part of buyer costs.

Closing Costs for Sellers in Illinois

Sellers typically pay about 1%–3% of the sale price, not including agent commissions.

Example: On a $400,000 home, seller closing costs are usually $4,000–$12,000.

Common Seller Closing Costs Include:

Title services and settlement fees
Owner’s title insurance (if not buyer-paid)
Transfer taxes (varies by municipality)
Prorated property taxes
HOA fees, if applicable
Realtor commissions (typically 5%–6%)

The Advantage of Fixed Closing Costs on New Homes

With new construction homes, closing costs are established upfront instead of being negotiated like they might be with resale homes. To make the process more budget-friendly, builders often introduce incentives that may include covering closing costs.

The Bottom Line

Buyers: Budget 2%–5%
Sellers: Expect 1%–3%, plus agent commissions
Everyone: Local practices vary — confirm with your agent or lender

M/I Financial can help you understand closing costs. Our team provides personalized loan options, competitive rates, and guidance throughout the mortgage process so you can close confidently. (NMLS# 50684)

Patrick Begg

Blog Author

Patrick Begg is a seasoned capital markets and risk management professional for M/I Financial, bringing over 35 years of expertise in navigating the complexities of secondary mortgage markets, structured finance, and comprehensive risk management strategies. Throughout his career, Patrick has demonstrated a deep understanding of market dynamics and a keen ability to adapt to the evolving landscape of mortgage finance. He remains passionate about staying ahead of trends in interest rate movements and regulatory shifts, ensuring strategic alignment in an ever-changing financial environment.