You'll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company conducting the closing will tell you the required amount for:

• Down payment
• Loan origination
• Points, or loan discount fees, which you pay to receive a lower interest rate
• Appraisal
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowner's insurance, if being paid as part of your mortgage payment
• Property tax escrow - Lenders keep funds for taxes and insurance in escrow accounts when they are paid with your mortgage. Then when your taxes/insurance come due, your lender pays the insurance or taxes for you. The normal is usually 3-4 months in escrow.
• Deed recording
• Title insurance policy premiums  
• Notary fees
• Document Prep Fees/FedX Shipping Fees 
• Closing itself at the title company

A Note About Prorations:  Because some costs are paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. "Proration" is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.  For example, if your association fees are $100 per month, the seller paid fees up to the end of the month which is the 30th.  If you close on the 27th, you would owe the seller for 3 days of association fees which he has paid in advance. (30-27=3 OR $100 divided by 30 = $3.33 X 3 days = $9.99) The bill is "prorated" for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

A FEW NOTES ABOUT CLOSING - You must bring a certified or cashiers check to closing payable to yourself (your name) and then endorse the check over to the title company. You must bring your drivers license as identification. You must also bring a paid one years homeowners insurance policy(if applicable) with you that will be given to the lender at closing.  THERE ARE NO EXCEPTIONS.

THESE COSTS ARE CUSTOMARY FOR THE STATE OF ILLINOIS.  Obviously if you are in another state, customary charges could be different.

LOOKING FOR A HOME IN THE NORTHWEST SUBURBAN CHICAGO MARKET IN ILLINOIS?

I am a seasoned veteran working the communities of Schaumburg, Hoffman Estates, Bartlett, Elk Grove Village, Medinah, Itasca, Carol Stream, Hanover Park, Streamwood, Elgin, South Elgin, Bloomingdale, St. Charles areas.

LYN SIMS at RE/MAX Suburban (847)230-7324 OR Email her at LynSims@msn.com