One of the biggest surprises for buyers is that the purchase price is not the only number you need to think about.
We have a lot of conversations where someone feels confident about their budget, and then once we start walking through the full picture, there are a few additional costs they were not expecting.
None of this is meant to overwhelm you. It is actually the opposite. Once you understand how it all works, it becomes much easier to plan and move forward confidently.
The Main Costs Buyers Should Expect
There are really three categories to think about:
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upfront costs before closing
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closing costs
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ongoing ownership costs
Each one plays a role in your overall budget.
Upfront Costs Before Closing
These are the costs that come into play once you are under contract.
Earnest Money
This is your initial deposit after your offer is accepted.
In this market, we typically see anywhere from a few thousand dollars to around one percent of the purchase price depending on the home and competition.
That money is not an extra cost. It gets applied toward your purchase at closing.
Home Inspection
Most buyers will do a home inspection.
This usually runs a few hundred dollars, depending on the size and type of home.
This is one of those areas where it is worth doing properly. It gives you a clear understanding of what you are buying.
Appraisal
If you are getting a mortgage, your lender will require an appraisal.
This confirms the value of the home and is another upfront cost to plan for.
Closing Costs
This is where most of the confusion comes in.
In Illinois, buyers typically pay around 2 to 5 percent of the purchase price in closing costs.
That can include:
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lender fees
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title and escrow costs
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prepaid taxes and insurance
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recording fees
The exact number will depend on your loan and the specific transaction.
Down Payment
Your down payment is separate from closing costs.
Depending on your loan, you might be putting down:
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3 to 5 percent
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10 percent
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20 percent or more
There is no one-size-fits-all answer here. It depends on your financial goals and loan structure.
Ongoing Costs to Plan For
After closing, there are ongoing costs that matter just as much.
That includes:
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property taxes
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maintenance
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utilities
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potential updates over time
We always encourage buyers to think about the full picture, not just getting to the closing table.
Why This Matters More Than You Think
The buyers who feel the most confident are the ones who understand these numbers ahead of time.
There are no surprises, and they can focus on finding the right home instead of worrying about the details later.
Let’s Walk Through Your Numbers
If you are starting to think about buying, we would be happy to walk through a full cost breakdown based on your price range so you know exactly what to expect.
FAQs
How much are closing costs in Illinois?
Typically between 2 to 5 percent of the purchase price, depending on the loan and transaction.
Do I need 20 percent down to buy a home?
No. Many buyers put down less depending on the loan program.
Is earnest money part of closing costs?
No, it is separate, but it does get applied toward your purchase at closing.
What is the biggest surprise cost for buyers?
Usually closing costs and prepaid taxes, since many buyers are not expecting the full amount.
