The total out of pocket costs to purchase a home in Chicago is equal the down payment + closing costs + a few other factors that could have an impact depending on the situation.
Closing costs are separate and in addition to down payment. Closing costs are a combination of all of the fees charged by each vendor who is required to provide services to close your purchase. Even though each vendor sets their own fees, your lender is challenged with the task of giving you the initial estimate of what those fees are. The “lender fees” actually paid to the lender (such as points, underwriting, and processing fees) are usually just a small portion of the overall “closing costs” which are collected by other 3rd parties. [Read more…]