Are you trying to budget for a home in Naperville but unsure how much you will owe at closing? You are not alone. Closing costs can feel mysterious, especially with different fees across DuPage and Will counties. In this guide, you will learn what closing costs include, what buyers in Naperville typically pay, and how to plan your cash to close with confidence. Let’s dive in.
What closing costs cover
Closing costs are the charges and prepaids required to complete your home purchase and mortgage, separate from your down payment. These include lender fees, title and recording charges, third-party services, and prepaid items like insurance and property tax escrows. You will also see prorations for taxes and association dues, based on your closing date.
How much buyers pay
As a general rule, buyer closing costs commonly fall in the 2% to 5% range of the purchase price. Your exact number depends on your loan type, interest rate and points, who pays which title policies, recording fees, and the size of initial escrow deposits. In Illinois, the initial property tax escrow can be a large part of cash to close because of the state’s tax schedule and timing.
Naperville specifics to confirm
- County differences: Naperville spans DuPage and Will counties, and recording fees and tax schedules differ by county.
- Title insurance custom: In many Chicago-area deals the seller often pays for the owner’s title policy, while the buyer pays the lender’s policy, but customs can vary by neighborhood and transaction.
- Transfer taxes: Illinois has a state transfer tax and some municipalities or counties may have additional taxes. Who pays is often based on local practice and negotiation.
- HOA fees: If you buy in an association, plan for transfer or move-in fees and prorated dues.
Line items explained
Lender and loan fees
- Origination or lender fee: Charged by the lender to process your loan. This may be a flat fee or a percent of the loan amount.
- Discount points: Optional cost to lower your interest rate. You can also choose a lender credit for a higher rate.
- Application, underwriting, processing: Standard administrative fees that will appear on your Loan Estimate and Closing Disclosure.
- Mortgage insurance or program fees: PMI for conventional loans with less than 20% down, FHA upfront MIP, or VA funding fees. Some fees can be financed or paid at closing.
Third-party services
- Appraisal: Ordered by the lender to confirm value. Typically paid before closing.
- Credit report: A small fixed fee.
- Home inspection: Strongly recommended and paid by you before closing.
- Survey and specialty checks: A survey may be required. You may also see flood determinations or pest inspections.
Title and settlement
- Lender’s title insurance: Protects your lender’s lien. Buyers commonly pay this in our area.
- Owner’s title insurance: Protects your ownership. Sellers often pay this in the Chicago metro, but confirm during negotiations.
- Title search and settlement: Covers title work and the closing escrow service.
- Recording fees: County charges to record the deed and mortgage. Amounts differ between DuPage and Will.
Prepaids and escrows
- Homeowners insurance: Lenders usually require the first year paid or proof of binder.
- Property tax escrow: Lenders often collect a deposit to fund your tax and insurance account. The amount depends on county schedule and time of year.
- Prepaid interest: Interest from your closing date to your first payment.
- HOA items: Transfer or move-in fees and prorated dues when applicable.
Prorations and credits
- Property tax proration: Each party pays their share based on the closing date and local billing cycle. You may receive a credit or owe a partial amount at closing.
- Utilities and other prorations: Customary adjustments for final bills and prepaid items.
Taxes and transfer taxes
- State and local transfer taxes: Illinois charges a state transfer tax, and other taxes may apply depending on the municipality or county. Who pays is often a local custom, so confirm early.
Examples by price
Below are illustrative examples for Naperville-area purchases with a mortgage and no seller-paid closing costs. Totals vary with loan type, rate, and escrow deposits.
Example A - $325,000 purchase
- Estimated total closing costs: 2.5% to 4% - about $8,100 to $13,000
- Lender fees and points: $1,625 to $3,250
- Appraisal: $450 to $700
- Credit and processing: $50 to $350
- Lender’s title and settlement: $1,200 to $2,200
- Recording: $125 to $350
- First year insurance: $600 to $1,200
- Initial escrow deposit: $2,000 to $5,000
- Miscellaneous: $100 to $600
Example B - $600,000 purchase
- Estimated total closing costs: 2% to 4% - about $12,000 to $24,000
- Lender fees and points: $3,000 to $6,000
- Appraisal: $500 to $900
- Title and settlement: $1,500 to $3,000
- Recording: $150 to $400
- Prepaids and escrow: $3,000 to $8,000
- Miscellaneous: $200 to $1,000
Example C - $1,000,000 purchase
- Estimated total closing costs: 1.8% to 3.5% - about $18,000 to $35,000
- Lender fees and points: $5,000 to $10,000
- Title and settlement: $2,000 to $5,000
- Appraisal and inspections: $700 to $2,000
- Recording: $200 to $600
- Prepaids and escrow: $6,000 to $15,000
- Miscellaneous: $500 to $1,500
Note: The initial escrow deposit for taxes and insurance is often the biggest swing factor, along with who pays the owner’s title policy and your loan program choice.
Prepare your funds
Before you write an offer
- Get a full pre-approval so your lender can issue a realistic Loan Estimate.
- Ask for sample scenarios that show different rates, points, and lender credits.
- Confirm local customs with your agent. Clarify who pays the owner’s title policy and how recording works in DuPage vs Will.
- Review recent property tax bills and HOA documents for any transfer fees and accurate escrow estimates.
Review your Loan Estimate and CD
- Timing: Your lender must deliver a Loan Estimate within three business days after application and a Closing Disclosure at least three business days before closing.
- Compare totals: Look at cash to close on the Loan Estimate versus the Closing Disclosure and ask about any changes.
- Check categories: Review lender charges, title charges, prepaids, prorations, and escrow deposits line by line.
- Ask questions: Request written explanations for any new or higher fees.
Safe payment and logistics
- Confirm accepted funds: Most title companies require a wire or certified funds. Ask early.
- Protect against wire fraud: Verify wiring instructions in person or by calling a known, trusted number. Be suspicious of last-minute changes.
- Bring the exact amount: Use your final Closing Disclosure to confirm your wire or cashier’s check amount.
- Keep records: Save your Loan Estimate, Closing Disclosure, and all communications about fees.
Reduce your costs
- Ask for seller credits: Seller-paid closing costs are negotiable and subject to loan program limits.
- Compare lenders: Fee structures and points vary. Get multiple Loan Estimates for the same scenario.
- Trade rate for credits: You can often choose a slightly higher rate in exchange for a lender credit to offset costs.
- Explore assistance: First-time buyer and local programs may offer down payment or closing cost help if you qualify. Ask your lender for current options.
Work with a local guide
You deserve clear, upfront numbers and a smooth path to closing. A local advisor will help you confirm who pays what in Naperville, estimate your escrow deposits, and structure credits that fit your goals. If you are planning a move in Naperville or across the Chicago suburbs, we are here to help you plan with confidence.
Have questions about your cash to close or how to compare Loan Estimates? Reach out to The Kohler Group for a clear, local walkthrough and a customized closing-cost plan.
FAQs
What are typical closing costs for Naperville buyers?
- Buyers often see total closing costs, excluding the down payment, in the 2% to 5% range of the purchase price, depending on loan type, escrow deposits, and local fees.
Can sellers pay buyer closing costs in Naperville?
- Yes, seller credits are possible and negotiable, subject to loan program limits and market conditions.
Who usually pays the owner’s title insurance in Naperville?
- In many Chicago-area transactions the seller pays the owner’s policy and the buyer pays the lender’s policy, but customs can vary by deal and should be confirmed.
How do DuPage vs Will counties affect costs?
- Recording fees and property tax schedules differ by county, which can change your recording charges and the size of initial escrow deposits.
What is the difference between cash to close and closing costs?
- Cash to close is your total amount due at closing and includes your down payment, closing costs, prepaids, and initial escrow deposits.
When will I receive my Closing Disclosure?
- Your lender must provide the Closing Disclosure at least three business days before your closing so you can review final numbers.
How do Illinois property taxes impact my escrow deposit?
- Because of Illinois billing timing, lenders often collect several months of taxes in your initial escrow deposit, which can be a large part of cash to close.
