Purchasing a home is not an ordinary, everyday transaction. Buying a home is complicated, and figuring out who is responsible for which costs can be confusing. If you are considering buying a home in the Land of Lincoln, you must familiarize yourself with the process and what to expect. While a real estate agent can help you find your dream home, a real estate attorney can help protect you and your investment.
At The Law Office of Vogel & Mourelatos, LLC, we have 30 years of combined experience in real estate law. We know how to help buyers through the home purchasing process and can explain who typically pays closing costs in Illinois.
What Are Closing Costs?
The first step to ensuring a smooth transaction is learning some of the common terminology you may encounter as you move through the closing process.
Closing costs are expenses that fall outside the property’s price and that are due at the time of closing. In Illinois, closing costs may include loan origination fees, title insurance, escrow fees, appraisal costs, and property taxes. However, the price of the home, the location, and whether you are buying or refinancing can all impact closing costs. Some estimates place the average closing costs for a home purchase, including taxes, at $5,929 in Illinois.
Who Pays Closing Costs?
When you prepare to purchase a home, a down payment isn’t the only thing you must bring to the table. In Illinois, the buyer usually pays the closing costs. In some instances, the buyer and seller each pay specific closing costs. However, in most cases, the burden of covering closing costs falls squarely on the shoulders of the home buyer. For buyers, closing costs are related to their home loan application, while for sellers, closing costs are associated with realtors’ commissions.
First-time home buyers are often taken by surprise by the realization that they must pay closing costs. Because closing costs can be substantial, finding ways to handle that additional expense is important.
One of the ways you might be able to avoid paying closing costs is to negotiate with the seller. In slow housing markets or when working with sellers incentivized to sell quickly, you can negotiate and ask the seller to pay a portion of the closing costs to seal the deal. This tactic works best in areas where there is less competition for homes. Some mortgage companies also allow you to roll closing costs into your mortgage. A no-closing-cost mortgage may help you purchase a home, but it can also increase your monthly payments.
Confused? An Illinois Real Estate Attorney Can Help
Purchasing a home is one of the most significant transactions you’ll make in your lifetime. Do not leave anything to chance. Get help from a skilled and knowledgeable Illinois real estate attorney. At The Law Office of Vogel & Mourelatos, LLC, we can handle our closing for you so that your real estate transaction proceeds smoothly.
Contact our Illinois office today and book a confidential legal consultation.