Buying a condo in Lake View should feel exciting, not confusing. One place buyers often get tripped up is closing costs. You know you’ll bring a down payment, but what else gets added to your “cash to close”? In this guide, you’ll see what closing costs cover, realistic ranges for Chicago condo purchases, examples using common price points, and which items you can negotiate. You’ll also learn how to verify exact numbers before you sign. Let’s dive in.
What closing costs cover
Closing costs are the fees, prepaids, and third‑party charges due at closing in addition to your down payment. These typically include lender fees, title and recording charges, transfer taxes, insurance and tax escrows, condo association fees, inspections, and a few miscellaneous items.
In many U.S. markets, total buyer closing costs (not including your down payment) commonly land around 2% to 5% of the purchase price for a financed purchase. Urban areas like Chicago can sit toward the higher end because of municipal and county charges and condo‑specific fees.
How much to budget
As a starting point, use the 2% to 5% planning range. That means a $350,000 condo might require roughly $7,000 to $17,500 in closing costs, and a $550,000 condo might require roughly $11,000 to $27,500. Always ask your lender for a Loan Estimate and your title company for a preliminary closing statement so you can tailor the estimate to your loan, building, and timing.
Common fees in Lake View condo purchases
Every building and lender is a little different, but these are the typical categories you’ll see when buying a condo in Lake View or nearby Roscoe Village.
Lender and loan charges
- What they cover: origination or underwriting, application and credit report, appraisal, mortgage broker fee if applicable, rate lock, flood certification, wire fees.
- Typical amounts: origination or underwriting is often 0% to 1% of the loan amount and commonly $500 to $3,000. Appraisals for Chicago condos often run $400 to $900. Credit reports are usually $15 to $50. Smaller items like flood or tax service are $10 to $200 each.
- Local note: Condo project approval can add time as appraisers and underwriters review building documents.
Title insurance and closing services
- What they cover: title search and commitment, closing agent fee, courier, lender’s title policy (required with financing), and owner’s title policy.
- Typical amounts: search and closing fees often $300 to $700. A lender’s title policy is a one‑time premium typically 0.3% to 0.8% of the loan amount. Owner’s title policy is usually priced on the purchase price.
- Chicago custom: It is common for the seller to pay the owner’s title policy and the buyer to pay the lender’s policy. This is negotiable, so confirm in your contract.
Transfer, documentary, and recording charges
- What they cover: state, county, and municipal transfer taxes, plus deed and mortgage recording fees.
- Typical amounts: recording fees are often $50 to $250 depending on documents recorded. Transfer taxes vary by jurisdiction, and Chicago and Cook County have multiple layers that can materially affect totals.
- Action step: Because rates and exemptions change, confirm current amounts with your title company or the relevant county and city offices before you finalize your budget.
Condo and HOA items
- What they cover: estoppel or resale certificate, association application, move‑in or move‑out fees, transfer or initiation fees, and your first month of dues.
- Typical amounts: resale packet or estoppel commonly $100 to $400+. Move‑in or transfer fees range $0 to $250, depending on building rules.
- Local note: In Chicago, sellers often pay for the resale packet, but it can be negotiated. Turnaround times vary by association and can impact closing dates.
Prepaids and escrow deposits
- What they cover: first year of condo HO‑6 insurance, prepaid mortgage interest, initial property tax and insurance reserves, and first month of HOA dues.
- Typical amounts: HO‑6 insurance often $250 to $1,200 annually. Lenders commonly collect about 2 months of property tax and insurance reserves. Prepaid interest varies by loan size, rate, and your closing date, often $100 to $2,000.
- Chicago note: Property taxes in Illinois are paid in arrears and are prorated at closing, so you will see a tax adjustment on your settlement statement.
Inspections and due diligence
- What they cover: general home inspection, plus add‑ons as needed such as radon, pest, HVAC, or elevator reviews. You should also review association financials, minutes, and the reserve study.
- Typical amounts: general condo inspection $300 to $700. Specialty inspections $100 to $500 each.
Other typical charges
- Attorney fees if you hire counsel: often $500 to $1,500+.
- Courier or wire fees: $25 to $100.
Sample cost scenarios
Use these as budget templates. Your actual figures will depend on your lender, building, and timing. Always request a Loan Estimate and a preliminary closing statement for precise numbers.
Example A: $350,000 Lake View condo
- Estimated total using 2% to 5%: $7,000 to $17,500
- Midline breakdown for planning:
- Lender fees and appraisal: $1,500
- Title and closing fees plus lender’s policy: $1,800
- Recording and county fees: $200
- Prepaids and escrow deposits: $1,300
- HOA resale packet and first month dues: $400
- Inspections: $600
- Transfer or municipal taxes: $1,200 (illustrative)
- Remainder for points or lender reserves: $1,000
Example B: $550,000 two‑bed condo
- Estimated total using 2% to 5%: $11,000 to $27,500
- Midline breakdown for planning:
- Lender fees and appraisal: $1,800
- Title and closing fees plus lender’s policy: $3,000
- Recording and county fees: $250
- Prepaids and escrow deposits: $2,200
- HOA resale packet and first month dues: $450
- Inspections and specialist reviews: $800
- Transfer or municipal taxes: $2,000 (illustrative)
- Miscellaneous items such as attorney and wire fees: $1,000
What you can negotiate
- Owner’s title policy: It is often paid by the seller in Chicago, but it is a negotiable contract term.
- Seller credits: You can ask for a closing cost credit. Lender rules may cap the credit based on loan type and down payment.
- Lender fees and rate options: Shop lenders, compare Loan Estimates, and ask about a lender credit in exchange for a slightly higher interest rate.
Items that are usually not negotiable include government recording and transfer taxes, condo association fees set by the board, and tax prorations based on actual figures and your closing date.
Verify your numbers early
- Ask your lender for a Loan Estimate within 3 business days of application. This lets you compare offers.
- Ask your title company for a preliminary settlement statement that reflects Cook County and City of Chicago charges and your specific condo’s fees.
- Ask the condo association or the seller for the resale packet cost and typical turnaround. Request HOA financials and the reserve study to gauge future assessments.
- Confirm current recording and transfer tax schedules with the county and city through your title officer.
Key timing to know
- Your lender must provide a final Closing Disclosure at least 3 business days before closing for financed purchases. Review it carefully and compare it to your Loan Estimate.
- Condo estoppel or resale packet delays are a common source of closing date slippage in Chicago. Order early and follow up.
Lake View and Roscoe Village tips
- Buildings vary. Two neighboring condo associations can have very different move‑in fees, application steps, and turnaround times. Ask about these before you finalize your offer timeline.
- Watch assessments and reserves. Review the budget, minutes, and reserve study so you understand the building’s financial health and any planned projects that could affect your costs.
- Coordinate early. Get your lender, agent, and title company aligned during attorney review so everyone can quote and collect the right fees up front.
Buying in Lake View should be exciting and straightforward. With a clear closing cost plan, you can write stronger offers and avoid last‑minute surprises. If you want local guidance and a smooth process from offer to keys, reach out to the Gonnella Group for support tailored to your goals.
FAQs
How much should I budget for buyer closing costs?
- Plan for 2% to 5% of the purchase price. For a $350,000 condo, that is roughly $7,000 to $17,500. For $550,000, plan for about $11,000 to $27,500. Ask your lender for a Loan Estimate to refine the numbers.
Who pays the owner’s title insurance policy in Chicago?
- It is common for the seller to pay the owner’s policy while the buyer pays the lender’s policy. This is negotiable and should be confirmed in your contract.
Can I roll closing costs into my loan?
- Some lenders allow limited costs to be financed or offer a lender credit in exchange for a slightly higher rate. Many items still must be paid at closing. Confirm options with your lender.
Are transfer taxes always the buyer’s responsibility in Chicago?
- It depends on the contract and jurisdiction. There are municipal and county levels in Chicago. Title companies typically calculate and collect these at closing, and responsibility can vary by agreement.
What are practical ways to reduce my closing costs?
- Shop lenders, compare fees, request seller credits, and negotiate who pays for the owner’s title policy. Government fees and association charges are typically not negotiable.
