Buying in Frankfort and wondering how much cash you will need beyond your down payment? You are not alone. Closing costs can feel vague until someone translates them into a simple, local number. In this guide, you will see what closing costs include, what buyers in Will County typically pay, and how to estimate your cash to close with real Frankfort price points. Let’s dive in.
What closing costs cover in Frankfort
Closing costs are the fees and prepaid items collected at or before closing to complete your purchase. They include third-party services like title work and appraisal, lender charges, government and recording fees, and prepaids such as taxes, insurance, and interest.
You bring closing costs in addition to your down payment. Your final cash to close equals your down payment plus closing costs, minus any seller credits or earnest money already applied.
How much buyers typically pay
Industry guidance commonly cites about 2% to 5% of the purchase price for buyer closing costs, excluding the down payment. The exact amount depends on your loan type, rate choices, property specifics, and timing.
For budgeting, many Frankfort buyers use a middle-of-the-road aggregate estimate of about 3% of the purchase price, then refine it once the lender issues the Loan Estimate and the title company provides quotes.
Your itemized costs explained
Lender fees
- Loan origination: Often 0.5% to 1.5% of the loan amount or a flat fee. Sometimes negotiable.
- Underwriting and processing: Commonly a combined few hundred dollars up to about $1,000.
- Credit report: Typically a small flat fee, often under $50.
- Appraisal: Most single-family appraisals in the Chicago suburbs run about $400 to $800, higher for complex properties.
- Discount points: Optional fee to buy a lower interest rate. One point equals 1% of the loan amount.
- Private mortgage insurance: If you put less than 20% down on a conventional loan, monthly PMI may apply. Some programs also include an upfront premium.
Title and settlement
- Title search and commitment: Reviews public records to confirm clear ownership.
- Owner’s title insurance: One-time premium based on price that protects your ownership. Who pays can vary by contract and local custom.
- Lender’s title insurance: Insures the lender’s interest and is usually required.
- Settlement or closing fee: Title company or attorney fee for preparing documents and disbursing funds. Often several hundred dollars.
- Recording fees: Paid to the county to record the deed and mortgage. Amount varies by document type and county schedule.
Attorney fees
In Illinois, you may choose to hire an attorney for contract review and closing. Some closings are handled by title companies without a buyer’s attorney. If used, buyer attorney fees are often several hundred dollars to $1,000 or more depending on the scope.
Prepaids and escrow
- Property taxes: You may deposit funds to start your escrow based on the tax calendar and your closing date.
- Homeowners insurance: Lenders typically collect the first year’s premium at or before closing.
- Prepaid interest: Covers interest from your closing date to your first payment. It depends on your loan amount, rate, and the number of days in that period.
- Escrow cushion: Lenders commonly hold about two months of taxes and insurance as reserves.
- HOA items: If applicable, expect prorated dues and any transfer or admin fees.
Government and transfer items
- Transfer taxes or stamps: Illinois has state and local rules. Whether they apply in Frankfort and who pays depends on local requirements and your contract.
- Recording fees: Charged by Will County to record your deed and mortgage.
Other possible items
- Survey, well or septic inspections, termite or pest inspection if required.
- Municipal utility or inspection fees if applicable.
- Courier and wire fees for secure fund transfers.
Frankfort and Will County specifics to verify
Some costs are set locally. Recording fees, any transfer taxes, and tax proration rules come from county or municipal offices. Before you finalize your budget, confirm with:
- Will County Recorder of Deeds for recording fees and requirements.
- Will County Treasurer or Assessor for property tax schedules and billing cycles.
- City of Frankfort to check for any municipal transfer taxes or administrative fees.
- Your chosen title company for exact title insurance premiums and settlement charges.
Real example estimates for Frankfort buyers
These examples use an aggregate closing cost estimate of about 3% of the purchase price for a typical conventional loan. Your figures will vary based on provider quotes, loan program, tax escrow needs, insurance premium, and exact closing date.
Example: $300,000 purchase
Assumed closing costs at 3%: $9,000
- Appraisal: $600
- Loan origination and processing: $1,500
- Title insurance (owner and lender combined estimate): $1,800
- Title, settlement, and recording: $700
- Prepaid property tax and escrow deposit: $2,000
- Homeowners insurance first year: $1,000
- Prepaid interest and other small items: $1,400
Down payment examples:
- 20% down: $60,000 down + $9,000 closing = $69,000 cash to close
- 5% down: $15,000 down + $9,000 closing = $24,000 cash to close
- FHA 3.5% down: $10,500 down + $9,000 closing + upfront MIP if applicable (often financed) = about $19,500+
Example: $450,000 purchase
Assumed closing costs at 3%: $13,500
- Appraisal: $600
- Loan origination and processing: $2,250
- Title insurance (owner and lender): $2,700
- Title, settlement, and recording: $900
- Prepaid property tax and escrow deposit: $3,000
- Homeowners insurance first year: $1,200
- Prepaid interest and other: $1,850
Down payment examples:
- 20% down: $90,000 + $13,500 = $103,500 cash to close
- 5% down: $22,500 + $13,500 = $36,000 cash to close
Example: $600,000 purchase
Assumed closing costs at 3%: $18,000
- Appraisal: $700
- Loan origination and processing: $3,600
- Title insurance (owner and lender): $3,600
- Title, settlement, and recording: $1,200
- Prepaid property tax and escrow deposit: $4,500
- Homeowners insurance first year: $1,800
- Prepaid interest and other: $3,600
Down payment examples:
- 20% down: $120,000 + $18,000 = $138,000 cash to close
- 5% down: $30,000 + $18,000 = $48,000 cash to close
Quick worksheet you can copy
Use this checklist to build your own estimate. Replace blanks with your quotes and numbers, then update as your lender and title company provide documents.
Purchase and loan basics
- Purchase price: $_____
- Down payment %: ____% → Down payment amount = Purchase price × Down payment %
- Loan amount: Purchase price − Down payment = $_____
Estimated closing costs
- Lender fees (origination, underwriting, processing): $_____
- Appraisal: $_____
- Credit report: $_____
- Discount points (optional): $_____
- Title insurance, owner: $_____
- Title insurance, lender: $_____
- Title, settlement, and closing fee: $_____
- Recording fees: $_____
- Attorney fees: $_____
- Survey: $_____
- HOA transfer or dues: $_____
Subtotal third-party fees = $_____
Prepaids and escrow deposits
- Prepaid property taxes (prorated): $_____
- Initial escrow deposit for taxes and insurance: $_____
- Homeowners insurance first-year premium: $_____
- Prepaid interest: $_____
Formula: (Loan amount × Annual interest rate ÷ 365) × number of days until first payment
Total prepaids and escrow = $_____
Cash to close
- Down payment = $_____
- Subtotal third-party fees = $_____
- Total prepaids and escrow = $_____
- Seller credits or earnest money applied = − $_____
- Funds needed at closing = Down payment + Subtotal + Prepaids − Credits
Ways to lower cash to close
- Ask about seller credits. Many loan programs allow seller-paid closing costs within set limits, which lowers what you bring to closing.
- Compare lender options. Origination structures and rate-without-points versus rate-with-points can shift upfront costs.
- Time your closing date. Closing near month-end can reduce prepaid interest.
- Shop title and settlement services. Premiums follow schedules, but total title and closing fees can vary by provider.
When you will see exact numbers
- Early in the process: Your lender provides a Loan Estimate within three business days of your mortgage application. Use it to refine the line items in your worksheet.
- Before closing: You receive a Closing Disclosure at least three business days before closing. It lists your exact cash to close, including all fees, taxes, and prepaids.
Buyer checklist for a smooth Frankfort closing
- Get written quotes from your lender and your chosen title company.
- Ask your lender for an escrow analysis that shows the initial deposit and cushion.
- Confirm Will County recording fees and any transfer taxes that apply based on your property and contract.
- Verify whether the property is in an HOA and budget for prorated dues or transfer fees.
- Review your Loan Estimate and Closing Disclosure line by line and ask questions early.
A local team that understands Frankfort and Will County practices can help you dial in these numbers, negotiate credits, and time your closing for the best outcome. If you want a clear, customized estimate for your situation, reach out to the Taylor Dixon Group. We are here to help you move with confidence.
FAQs
How much are buyer closing costs in Frankfort, Illinois?
- Most buyers budget about 2% to 5% of the purchase price for closing costs, excluding the down payment, with many planning around 3% until lender and title quotes arrive.
Who pays for title insurance in Will County transactions?
- The buyer typically pays the lender’s policy, and payment of the owner’s policy varies by local custom and contract, so confirm with your title company and your purchase agreement.
Are there transfer taxes for homes in Frankfort and Will County?
- Illinois has state and local transfer tax rules, and whether they apply to your deal as well as who pays depends on local requirements and your contract, so verify with Will County and the City of Frankfort.
How much will my lender require for tax and insurance escrow in Frankfort?
- Lenders follow federal rules and their own policies, but an initial deposit often equals a few months of taxes and insurance plus a cushion; your lender’s escrow analysis will show the exact amount.
Can the seller pay my closing costs on a Frankfort home?
- Yes, seller concessions are allowed up to program limits for conventional, FHA, and VA loans and can reduce the cash you bring to closing.
When will I get my final cash-to-close number before closing?
- You receive a Loan Estimate within three business days of mortgage application and a Closing Disclosure at least three business days before closing with the exact totals.
