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Negotiating Closing Costs in Illinois Real Estate Deals

Mark Kelner

Mark Kelner

About author

As a mortgage professional, I understand the significance of homeownership and take pride in being a reliable partner for my clients throughout their home buying journey.

Jun 26, 2023

Closing costs can add a significant financial burden to real estate transactions in Illinois.

To help reduce these costs, consider the following tips for negotiating closing costs:

Understand Closing Costs:
Familiarize yourself with the different types of closing costs typically involved in Illinois real estate transactions. These may include lender fees, appraisal fees, title insurance, attorney fees, recording fees, and prepaid expenses such as property taxes and homeowner's insurance. Understanding what these costs entail will empower you to negotiate effectively.

Shop Around for Lenders:
Obtain quotes from multiple lenders and compare their loan estimates, including the closing costs. Some lenders may be willing to compete for your business by offering lower fees or providing incentives to cover a portion of the closing costs. Use these estimates as leverage during negotiations.

Negotiate with the Seller:
In some cases, the seller may be willing to contribute towards the buyer's closing costs. This can be negotiated as part of the purchase agreement. Sellers who are motivated to close the deal may be open to reducing the purchase price or offering credits to offset the buyer's closing costs.

Request Lender Credits:
During the loan application process, you can negotiate with the lender to provide credits that can be applied towards closing costs. These credits are typically given in exchange for accepting a slightly higher interest rate. Evaluate the long-term impact of the higher rate versus the immediate benefit of reduced closing costs to determine if this is a viable option.

Seek Lower Title Insurance Rates:
Title insurance is a significant closing cost. While the rates are regulated in Illinois, you can still shop around and compare rates from different title insurance companies. Request quotes and negotiate with the chosen company to obtain the best possible rate for your specific transaction.

Review and Challenge Fees:
Pay close attention to the fees and charges, ensuring they align with your expectations and industry standards. Seek clarification on any ambiguous fees and request explanations for any costs that may appear higher than anticipated. This thorough review can help you identify areas where negotiation may be possible and potentially result in cost reductions.

Consider a No-Closing-Cost Loan:
Some lenders offer the option of a no-closing-cost loan. In this arrangement, the lender covers some or all of the closing costs, but the borrower typically pays a slightly higher interest rate. Evaluate the long-term implications of the higher rate and weigh them against the immediate benefit of avoiding upfront closing costs.

Work with an experienced real estate agent:
Seeking guidance from a well-informed local real estate agent who possesses in-depth knowledge of the market can be invaluable in negotiating closing costs. Their expertise and professional connections enable them to assist you in navigating the negotiation process successfully. If you require assistance, One Republic Mortgage can provide referrals to reputable local Realtors.

Utilize online closing cost calculators specific to Illinois to estimate and compare closing costs in different scenarios

Use a Closing Cost Calculator:
Utilize online closing cost calculators specific to Illinois to estimate and compare closing costs in different scenarios. This will give you a better understanding of the potential costs and provide a basis for negotiation discussions.

Be Prepared to Walk Away:
If the closing costs are excessive or negotiations do not yield satisfactory results, be prepared to walk away from the transaction. It's important to find a balance between getting a fair deal and ensuring the transaction aligns with your financial goals.


Remember, negotiation is a collaborative process, and both parties must be willing to find common ground. Communicate your concerns, explore options, and work towards a mutually beneficial outcome. With careful preparation and effective negotiation, you can potentially reduce closing costs and make your Illinois real estate transaction more affordable.

One Republic Mortgage, Buying a Home, Illinois mortgage, Mortgage Services


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