Short answer: Plan on closing costs of about 2% to 5% of the purchase price, which is roughly $8,000 to $20,000 on a $400,000 home (Freddie Mac). In the Northwest Suburbs, buyers usually don’t pay Illinois or county transfer tax, and many towns charge buyers nothing at closing. Because Illinois property taxes are paid a year behind, you usually get a credit from the seller for taxes, which lowers your cash to close.
General information, not legal, tax or lending advice. Your lender’s Loan Estimate and your attorney give you the real numbers.
What Buyers Pay at Closing
1. Lender fees
These include the origination or underwriting fee, appraisal, credit report, tax service and flood certification. Freddie Mac lists these as core buyer closing costs. Your lender has to give you a Loan Estimate within three business days of your application (CFPB), so you can compare lenders line by line. Discount points are optional and cost extra.
– Origination fee: typically 0.5%–1% of the loan amount (Bankrate).
– Appraisal: your lender orders it and sets the fee. Appraisals typically cost a few hundred dollars.
2. Title charges and the lender’s policy
By Chicago-area custom, the seller pays for the owner’s title policy. The buyer usually pays for the lender’s title policy and their share of the title company’s closing and escrow fees. Published Chicago-area title rate schedules put a lender’s policy on a loan of about $320,000 at roughly $575–$600 (ATA National Title Group rate card; First American Chicago metro rates). The title company’s closing and escrow fees are extra and vary by company.
3. Your real estate attorney
In Illinois, both sides almost always hire attorneys. The attorney review period in the standard Multi-Board contract is when your attorney negotiates terms and inspection items. The attorneys I work with typically charge flat fees of about $500–$600 for a closing. That’s a typical range, not a guarantee, so ask your attorney for a quote up front.
4. Prepaids and escrow
These are not fees. They prepay costs you’d have anyway:
– Homeowners insurance: usually the first year’s premium, paid at or before closing. The Illinois average is about $2,400 a year for $300,000 of dwelling coverage (Insuranceopedia, 2026).
– Escrow deposits: a cushion for future tax and insurance bills, if your loan has an escrow account.
– Prepaid interest: interest from your closing date to the end of that month. Closing later in the month means less prepaid interest.
5. Property tax proration, usually in your favor
Illinois property taxes are paid in arrears: the bills you pay in 2026 are for the 2025 tax year (Illinois Department of Revenue). At closing, the seller credits you for the taxes that built up while they owned the home and haven’t been billed yet. You then pay that bill when it comes. This credit can offset a big part of your closing costs, so don’t spend it! For local tax rates, see my guide to property taxes in Huntley, Crystal Lake, Algonquin and Barrington.
6. Transfer taxes: usually not the buyer’s cost
- Illinois ($1.00 per $1,000) and county ($0.50 per $1,000) transfer taxes are customarily paid by the seller (Illinois Department of Revenue).
- Huntley, Crystal Lake and Algonquin have no municipal transfer tax.
- Some towns charge the buyer. The Fidelity National Title transfer tax list (July 1, 2026) shows these, among others:
| Town | Buyer-paid municipal transfer tax |
|---|---|
| Chicago | $3.75 per $500 ($7.50 per $1,000) |
| Mount Prospect | $3.00 per $1,000 |
| Niles | $3.00 per $1,000 |
| Wilmette | $3.00 per $1,000 |
| Addison | $2.50 per $1,000 |
| Lake Forest | $4.00 per $1,000 |
| Sycamore (DeKalb County) | $5.00 per $1,000 |
Rates and rules change, so your title company confirms the current amount. Many towns also require a final water bill or inspection, and that usually falls to the seller.
You’ll also pay government recording fees for your deed and mortgage. In McHenry County, a standard deed costs $83 and a mortgage $93 to record (McHenry County Recorder fee schedule). Other counties set their own fees.
7. Inspections
A general home inspection is paid before closing, not at closing, but plan for it. In our area, a home inspection typically runs about $600, and a radon test about $250.
– Sewer scope (optional): in our area, this averages about $300.
– Ask me about well and septic inspections.
8. HOA or condo fees
If the home is in an association, you may pay a transfer fee, a capital contribution, or the first month’s dues at closing. These amounts are set by each association. Ask for them early, before attorney review ends.
– Sun City Huntley: association-related closing fees differ depending on whether you buy new from the builder (Del Webb, a Pulte brand) or buy a resale, so ask me for the current amount. See Sun City Huntley homes for sale.
9. Commission fees
Example: a $400,000 Home in Huntley
An estimate built from the averages above, assuming a $320,000 loan (20% down). Not a quote: your Loan Estimate and title quote give the real numbers.
| Item | Estimated average |
|---|---|
| Origination fee (0.5%–1% of $320,000) | $1,600–$3,200 |
| Appraisal | a few hundred dollars (set by your lender) |
| Lender’s title policy | $575–$600 |
| Recording (McHenry County deed and mortgage) | $176 |
| Buyer’s attorney (typical flat fee) | $500–$600 |
| Home inspection, radon test and sewer scope | about $1,150 |
| First-year homeowners insurance | about $2,400 |
| State and McHenry County transfer tax | $0 (seller customarily pays) |
| Huntley municipal transfer tax | $0 |
| Commission fees | |
| Estimated total of the items above (appraisal not included) | about $6,400–$8,130 |
Title company closing/escrow fees, escrow deposits, prepaid interest, and any HOA fees add to that total. The property tax credit from the seller comes off it. That puts most buyers in line with the 2%–5% rule of thumb. For comparison, Bankrate’s LodeStar data puts the Illinois average for core closing costs at $4,702, or 1.30% of the price, before insurance and other prepaids (Bankrate).
The same home in Chicago would add a buyer transfer tax of about $3,000 ($7.50 per $1,000 × 400).
Ways to Lower Your Cash to Close
- Compare Loan Estimates from at least two lenders (CFPB).
- Negotiate seller credits in your offer, within what your lender allows.
- Pick your closing date wisely to reduce prepaid interest.
- Check assistance programs. The Illinois Housing Development Authority offers down payment and closing cost help to eligible buyers. For example, Access Forgivable provides 4% of the price, up to $6,000, and is forgiven over 10 years. Income, price and credit limits apply (IHDA).
- Get pre-approved early. See why you need a pre-approval before you buy and how much income you need to buy in the Chicago suburbs.
Buying in the Northwest Suburbs?
Each town handles closings a little differently. I’ll walk you through what to expect in Huntley, Crystal Lake or Algonquin. If you’re commuting, start with my guide to Chicago suburbs near Metra. Selling first? Get a free home value report.
Call or text Dana Gallagher at 224-858-0022, or contact me here, for a buyer cost estimate on any home you’re considering.
Have a question? Ask Dana
FAQ
How much are buyer closing costs in Illinois?
Usually 2% to 5% of the purchase price, before any property tax credit from the seller.
Does the buyer pay transfer tax in Illinois?
Not the state or county tax, which the seller customarily pays. Some towns, including Chicago and Mount Prospect, charge the buyer a municipal tax. Huntley, Crystal Lake and Algonquin don’t.
Who pays for title insurance in Illinois?
Customarily, the seller pays for the owner’s policy, and the buyer pays for the lender’s policy.
Do I need an attorney to buy a house in Illinois?
It’s standard practice in the Chicago area. The attorneys I work with typically charge a flat fee of about $500–$600.
Why do I get a property tax credit at closing?
Illinois taxes are paid a year behind, so the seller credits you for the time they owned the home that hasn’t been billed yet.
Sources
– Bankrate, Average Closing Costs by State (LodeStar): https://www.bankrate.com/mortgages/average-closing-costs-by-state/
– Bankrate, Origination Fee: https://www.bankrate.com/mortgages/origination-fee/
– ATA National Title Group rate card: https://www.atatitle.com/wp-content/uploads/2024/04/2024-ATA-NTG-Rate-Card.pdf
– First American, Chicago Metro Rates: https://first-american-bucket.s3.amazonaws.com/local-firstam-com/live/assets/documents/il/shared-document-center/10970-chicago-metro-rates.pdf
– McHenry County Recorder, Fee Schedule: https://www.mchenrycountyil.gov/departments/county-recorder/fee-schedule
– Insuranceopedia, Illinois Home Insurance (2026): https://www.insuranceopedia.com/homeowners-insurance/cost-home-insurance-illinois
– IHDA, Lending Programs: https://ihda.org/lenders-realtors/lending-programs/
– Freddie Mac, What Are Closing Costs: https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay
– CFPB, Loan Estimate: https://www.consumerfinance.gov/owning-a-home/loan-estimate/
– Illinois Department of Revenue, Real Estate Transfer Tax: https://tax.illinois.gov/research/taxinformation/property/realestate.html
– Illinois Department of Revenue, Property Tax Cycle: https://tax.illinois.gov/localgovernments/property/taxcycle.html
– Fidelity National Title, Illinois Transfer Tax List (July 1, 2026): https://www.illinois.fntic.com/FNTRSIllinois/media/media/Online%20Documents/FNT-Transfer-Tax-List-July-1-2026.pdf
Related: Selling too? See what to disclose when selling a house in Illinois.