Are you budgeting for a home in Schaumburg and wondering how much you need at closing? You are not alone. Closing costs can surprise buyers if you only plan for the down payment. In this guide, you will see what closing costs usually include, who pays what in Cook County, how to estimate your cash to close, and simple ways to prepare with confidence. Let’s dive in.
Closing costs in Schaumburg: the basics
Most buyers should plan for closing costs equal to about 2% to 5% of the purchase price, not including your down payment. On a $350,000 home, that is roughly $7,000 to $17,500. Your final number depends on your loan type, whether you pay discount points, how taxes and escrows are set up, and who pays for certain title items.
Closing costs are separate from your down payment. You will also get a credit at closing for any earnest money you already paid.
What buyers usually pay in Cook County
Every contract is negotiable, but there are common patterns in the Chicago suburbs. Here is what you can expect to see as a Schaumburg buyer.
Lender and loan fees
- Origination, processing, and underwriting: Often a flat fee or a percentage of the loan. Many lenders quote 0.5% to 1.0% of the loan amount for origination.
- Credit report and application: Usually a small fee in the tens to low hundreds of dollars.
- Appraisal: Commonly $300 to $700 or more, depending on the property.
- Rate lock fees: Some lenders charge for a lock. Others include it in points or origination.
- Discount points (optional): One point equals 1% of the loan amount and lowers your rate. This can add thousands to cash to close.
- Mortgage insurance: Conventional loans with less than 20% down often require PMI. FHA loans include upfront and annual mortgage insurance premiums. Your lender will outline the exact costs.
Title, settlement, and recording
- Title search and exam: A few hundred dollars to review the property’s history.
- Lender’s title insurance policy: Usually required by the lender and typically paid by the buyer.
- Owner’s title insurance policy: A one-time premium that protects your ownership. In many Chicago-area transactions the seller pays this, but it is not guaranteed. Check your contract.
- Settlement or closing fee: Charged by the title or closing company.
- Recording fees: Fees to record the deed and mortgage with the county.
Prepaid items and escrow deposits
- Prepaid interest: Covers interest from your closing date to the start of your first full payment.
- Property taxes: Illinois taxes are paid in arrears. At closing, you will typically see a tax proration. You may also fund an escrow account for future tax payments.
- Homeowner’s insurance: Most lenders require you to pay the first year’s premium at closing. Many will also collect an initial escrow deposit.
- Escrow reserves: Lenders often collect 1 to 2 months of insurance and tax payments plus a cushion. Requirements vary by lender.
- HOA or condo items: You may prepay part of the monthly dues or reimburse the seller for a prorated amount. Association document or transfer fees may apply.
Inspections and reports
- Home inspection: Typically $300 to $800, depending on size and scope.
- Pest or termite inspection: Often under $200 to $300.
- Survey: May be required. Costs vary. Some sellers provide an existing survey.
- Specialty inspections: Radon, sewer scope, mold, or structural checks are optional and vary in cost.
Government and local taxes or assessments
- Transfer and municipal taxes: These can apply at the state, county, or municipal level. Who pays depends on local custom and your contract.
- Special assessments or delinquent taxes: If any exist, they are typically addressed at closing. Review the title search for clarity on who pays.
Who pays what in Schaumburg
In Illinois, most payments are based on local custom and your contract, not a strict rule. Here are common patterns in the Chicago suburbs, including Schaumburg:
- Buyers usually pay lender fees, inspection costs, appraisal, the lender’s title policy, prepaid interest, the first year of homeowner’s insurance, and escrow deposits for taxes and insurance. Buyers also pay discount points if they choose to buy down the rate.
- Sellers commonly pay real estate commissions and, in many local transactions, the owner’s title policy and certain settlement fees. This is customary in many Chicago-area deals but is always negotiable.
- Property tax proration is standard, since Cook County taxes are paid in arrears. The proration adjusts what each party owes for the period of ownership.
- Transfer taxes and municipal fees vary by location. Confirm who pays by reviewing the contract and the title fee estimate.
Always verify local practice with your agent and the title company. The contract controls the final allocation.
Schaumburg buyer examples
Seeing the math makes planning easier. Here are two sample scenarios for a $350,000 purchase. These are illustrations. Your lender’s Loan Estimate and the title company’s closing statement will show your actual numbers.
Example A: lower end of range
- Purchase price: $350,000
- Down payment: 10% = $35,000
- Estimated closing costs: 2% of price = $7,000
- Earnest money credit: $5,000
- Cash to close: $35,000 + $7,000 − $5,000 = $37,000
Example B: higher end of range
- Purchase price: $350,000
- Down payment: 5% = $17,500
- Estimated closing costs: 5% of price = $17,500 (includes a discount point and escrow reserves in this example)
- Earnest money credit: $5,000
- Cash to close: $17,500 + $17,500 − $5,000 = $30,000
Line-item illustration
Here is a simple mix of fees to show how totals can add up on a $350,000 purchase. This is not a quote.
- Loan origination and processing: $2,800
- Appraisal: $550
- Credit and underwriting: $100
- Lender’s title policy and recording fees: $1,200
- Owner’s title policy: $1,000 (may be paid by seller)
- Prepaid interest: $500
- First year homeowner’s insurance: $1,200
- Escrow deposits for taxes and insurance: $1,500
- Inspections: $700
- Estimated closing costs: about $9,550, which is roughly 2.7% of price, plus your down payment
Cash-to-close worksheet
Use this worksheet to plan your range before you apply, then replace estimates with your Loan Estimate and title company figures.
- Purchase price: __________
- Agreed earnest money (credit at closing): __________
- Down payment (% and $): ________ / __________
- Loan amount (Purchase price − Down payment): __________
- Estimated closing costs (2% to 5% of purchase price): __________ (low) — __________ (high)
- Lender fees (origination, appraisal, credit, underwriting): __________
- Title and settlement fees plus title insurance: __________
- Prepaids and escrow (insurance, taxes, prepaid interest): __________
- Inspections, survey, HOA document fees: __________
- Seller credits or concessions negotiated: __________
- Cash to close estimate: Down payment + Closing costs + Prepaids − Earnest money − Seller credits = __________
How to prepare and save
- Request Loan Estimates early. After you apply with a lender, you should receive a Loan Estimate within three business days. Compare at least two lenders so you can evaluate rates, points, and fees.
- Ask for an itemized title estimate. The title or closing agent can provide a draft statement with expected charges so you can plan your cash to close.
- Consider seller concessions. A seller can credit some of your closing costs, subject to loan program limits. In many area deals, sellers also pay the owner’s title policy, but this is negotiated.
- Be selective with discount points. Points raise cash to close. Only pay for points if the long-term savings match your time horizon.
- Mind your closing date. Prepaid interest covers the period from closing to your first payment. A closing late in the month can lower that specific prepaid amount.
Local checks before you write an offer
- Will the seller pay for the owner’s title policy in this transaction?
- Are there any municipal transfer taxes or fees in Schaumburg, and who pays them?
- What is the expected Cook County tax proration method and the next tax due date for this property?
- How many months of taxes and insurance will your lender require for escrow reserves?
- Does the condo or HOA require reserves, special assessments, or prepaid dues at closing?
- Will any seller liens, assessments, or unpaid bills reduce seller proceeds or change buyer credits?
Work with a local team you trust
Clear numbers lead to better decisions. When you know your cash to close for a Schaumburg purchase, you can shop with confidence and write stronger offers. If you want help reviewing a Loan Estimate, requesting title fee quotes, or planning for taxes and escrows, the Currey Koertgen Team is ready to guide you from pre-approval to closing day.
Have questions about your budget for a Schaumburg home? Connect with the Currey Koertgen Team to get a tailored estimate and a clear plan.
FAQs
What are typical buyer closing costs in Schaumburg?
- Most buyers should plan for about 2% to 5% of the purchase price in closing costs, not including the down payment.
What is a Loan Estimate and why request it early?
- The Loan Estimate outlines your loan terms and estimated closing costs, and lenders must provide it within three business days of your application so you can compare offers.
Can a seller pay my closing costs in Schaumburg?
- Yes, seller concessions can cover some buyer costs, but the amount is limited by loan program rules and must be negotiated in your purchase contract.
Who pays for title insurance in Cook County?
- The lender’s policy is typically a buyer cost, while the owner’s policy is often paid by the seller in many Chicago-area deals, though it is negotiable.
How do Cook County property taxes affect cash to close?
- Illinois taxes are paid in arrears, so you will see a proration at closing and you may fund an escrow for future tax bills, which affects your upfront cash and monthly payment.
Are transfer taxes a buyer cost in Schaumburg?
- It depends on local rules and your contract; in the suburbs outside Chicago, practices vary, so confirm who pays on the title estimate.
What inspection costs should I expect as a buyer?
- Plan for a home inspection of about $300 to $800, a pest inspection often under $200 to $300, and optional specialty inspections if needed.
What is the difference between lender’s and owner’s title policies?
- The lender’s policy protects the lender’s interest in the property and is usually required, while the owner’s policy is optional and protects your ownership for a one-time premium.
