Understanding Your Closing Statement as a Buyer in Chicago

Closing day in Chicago is exciting—but let’s be real, the paperwork can feel like a foreign language. One of the most important documents you'll encounter is the closing statement (also called a settlement statement). It breaks down every dollar in your transaction, and as the buyer, you’ll want to understand exactly what you’re signing.

What Is a Closing Statement?
The closing statement itemizes all the financial details of your purchase. It includes the purchase price, loan charges, prorated taxes, title fees, and any credits or debits between you and the seller. This document is typically issued a few days before closing, so you have time to review it. You can see a sample closing disclosure from the Consumer Financial Protection Bureau for reference.

Key Sections to Know
Start by reviewing the purchase price, your loan amount, and the cash to close section. Then, double-check the tax prorations, especially in Cook County, where taxes are paid in arrears. Title charges and lender fees should match what you saw on your Loan Estimate earlier in the process.

One area that surprises many buyers? Escrow reserves. Lenders usually require you to prepay a few months of taxes and insurance into an escrow account. If you're buying from our featured listings, your agent will walk you through how these are calculated.

Don’t Forget to Ask Questions
If something seems off, ask! Your real estate attorney or agent is there to help you make sense of it all. Working with local experts—like those on our About page—ensures no detail gets missed.

Also, check for credits like seller concessions or earnest money already paid. These should be deducted from your total due. Curious how these numbers impact you long-term? This closing cost calculator can help.

Pro Tip: Always compare your final closing statement to the Loan Estimate you received at the beginning of the process. Federal law requires that most fees stay within certain tolerances.

For more buying tips and local insights, browse our real estate blog or reach out with questions—we’re happy to help.

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