Average closing costs in Illinois

If you’re thinking of buying a home in Illinois, you won’t just need to write a check at closing for your down payment on a mortgage. You’ll also need cash to cover closing costs.

The amount you pay for closing costs goes toward paying several parties who contribute to the transaction, such as your lender, home appraiser, home inspector, and others. Let’s look at how these fees are determined in Illinois so you can have a good idea of how much you’ll need to cover them based on the sale price of your new home.

Note that there are also closing costs incurred by the seller, but where the buyer must bring cash to the table at closing, the seller has their costs pulled from the proceeds of the sale. For this article we’ll discuss both, but since the buyer’s costs are more relevant at closing, we’ll focus more on those.

How much are closing costs in Illinois on average?

Each state has different rules for how closing costs are calculated and distributed, so what you’ll pay in Illinois can be very different from nearby states. Based on Rocket Mortgage data from August 15, 2024 to August 15, 2025, average closing costs in Illinois are approximately $8,548 to refinance and $14,302 to purchase a new home. Since the median home sale price in Illinois for a single-family home as of October 2025 is $310,300, closing costs equal about 2.75% - 4.61% of the median sales price.

Closing costs overview

Just as closing costs vary by state, you can expect them to be different from one area to the next within a state. This is primarily because many of the fees applied at closing are tabulated as a percentage of the home’s price or the amount of the mortgage. And since every home sale is unique, the closing costs for every sale vary.

You can get a good estimate of where homes are pricier from data that is readily available. By looking at where median home prices are more or less expensive in Illinois, for example, you can see where closing costs are more likely to be highest or lowest. You can expect that most homes are far more expensive in a tony suburb of Chicago than in an agricultural community in rural Illinois.   

Here is a list of many of the closing costs that a homebuyer may have to pay at the closing meeting:

• Lender origination fees: Your lender will charge a fee for underwriting, processing, and ultimately funding your loan. You should ask about these charges upfront. In some cases, you might be able to negotiate fees.
• Appraisal: The lender will hire a home appraiser who will make a professional assessment of the home’s market value to verify that the sale price is not too high. As of October 2025, Angi reports that home inspections usually range between about $315 and $425, but you can end up paying more based on factors such as the size of the home or the complexity of the property.
• Real estate commissions: In the past, the home seller generally was responsible for paying the real estate commission for both the buyer’s agent and their listing agent at closing. The fee compensated both agents and was typically around 2.5%-3% for each or 5%-6% total. In August 2024, a legal settlement over real estate commissions changed how they’re handled. One of the impacts is that sellers are no longer automatically required to pay the real estate commission for the buyer’s agent. Compensation for the buyer’s agent and the seller’s agent is still fully negotiable and transparent, so buyers and sellers can make informed choices. In 2025, the average real estate commission fee in Illinois is 5.56 of the home sale price.
• Credit reports: The fee your lender pays to obtain your credit score and borrowing history is passed on to you. Depending on how your lender evaluates it, your credit history may impact your mortgage rate.
• Home inspection: It’s essential that you get a thorough, professional home inspection before closing. In fact, your lender will require it. This protects you both by evaluating whether the property’s foundation, electrical service, plumbing, and other key functions are sound. In most cases you will hire the inspector and pay their fee, which averages around $343, depending on the size of the house as well as other factors.
• Attorney fees: If you hire an attorney to review your documents and attend the closing (should not be necessary if you have a good real estate agent in most cases), you will pay their fee at closing.
  • Prepaid costs (taxes and insurance): Making your monthly mortgage payment is not the only expense of homeownership—you’ll also have to pay property tax and homeowners insurance. To get you current on both, you may need to make advance payments at closing. Property taxes vary widely from state to state depending on where you buy and will make a big impact on your monthly payments, so make sure you know how this may impact your budget.
• Title insurance: Title insurance protects you from an ownership problem or claims on your title that may or may not arise when you own real estate. This is a one-time fee.
• HOA fees: If your new home is in an HOA-managed community, you may need to make a one-time payment to get your monthly dues up to date. After you close, you may pay a monthly fee as well.

Calculating closing costs

Closing costs are a little different in every Illinois city or town, but an example of closing costs on a home with the median sale price of $320,700 would look like this:

• $320,700 x 0.02665 = $8,548

Are closing costs in Illinois above average?

Yes, closing costs in the Prairie State are higher than the U.S. average, mainly because of the imposition of state and local transfer taxes on the sale, which add significantly to closing costs. This is a one-time fee, calculated as a percentage of the home's sale price, imposed when real estate changes hands in Illinois.

Sellers in Illinois pay this state transfer tax at a rate of $0.50 per $500 of the sale price (or fraction thereof). In addition, there is a county transfer tax, and some municipalities impose a local transfer tax. Depending on local laws, some of these taxes fall to either the buyer or seller, so ask your real estate agent to clarify. If the home is part of an HOA, you may also pay a private transfer tax to that association. 

Who pays closing costs in Illinois?

Both home buyers and sellers pay closing costs in Illinois. Because laws vary in every Illinois county and municipality, the responsibility for these costs may differ depending on where you buy a house.

In general, here is how closing costs divide up between buyers and sellers.

Usual costs for sellers

• Real estate agent commissions
• State transfer taxes
• County transfer taxes
• Municipal/city transfer taxes (split between seller and buyer)
• Title insurance (owner’s policy)
• Deed preparation and recording fees
• Outstanding liens or mortgages

Usual costs for buyers

• Loan origination fees
• Appraisal fees
• Credit report fees
• Home inspection
• Title insurance (lender’s policy)
• Recording fees
• Prepaid costs (taxes, insurance, mortgage interest)
• Municipal/city transfer taxes (split between seller and buyer)
• Private transfer fees (HOA)

FAQ

Here are some common questions people have when anticipating paying closing costs in Illinois.  

Are there ways to save money on closing costs in Illinois?

• First start with your real estate agent. A good one will help you negotiate whether you or the seller pay the state, county, and municipal transfer taxes at closing. They should also be familiar with first-time buyer advantages or any local assistance programs you might be qualified for, such as grants and loans from the Illinois Housing Development Authority.

What are the differences between each transfer tax?

• Depending on where you buy, you may not have to pay all three types of transfer taxes, or one each for the state, the county, and the city or town. The state transfer tax is a mandatory fee imposed by the state and usually paid by the seller. Many counties add their own transfer taxes on top of the state tax. Some cities or municipalities also charge local transfer taxes, which might be split between buyer and seller depending on local rules. Each fee is separate, so total costs vary depending on where the property is located, and the amount will vary with each sale because it’s tied to the home sale price.

The bottom line: Save for higher closing costs in Illinois

Of all the factors affecting your total closing costs in Illinois, the most impactful is the home sale price since many of the costs are a percentage of that price. You’ll pay more than in some other states because Illinois has mandatory state transfer taxes on real estate, as well as additional transfer taxes in some counties and municipalities.

Once you’ve selected a lender, you can ask them to disclose a detailed list of mortgage-specific charges that are part of closing costs. They are legally required to give you the most recent and accurate information available. Your realtor may also be able to give you information about local transfer taxes or other fees that will add to closing costs.

If you’re ready to buy, check out Illinois mortgage rates.