Mortgage lender closing cost rankings in Illinois (2025)

Illinois is a judicial foreclosure state, meaning lenders must file suit in court to foreclose on a property. This process can take 12 to 24 months or longer, giving borrowers meaningful procedural protections but also contributing to higher carrying costs for lenders. Illinois uses mortgage instruments rather than deeds of trust. Illinois is an attorney state: a licensed Illinois attorney must be present and oversee the closing, which adds a legal fee line item not found in title-only states. Transfer taxes operate at multiple layers — the state imposes a transfer tax, and Cook County and the City of Chicago levy additional transfer taxes, making the Chicago metro one of the higher transfer-tax environments in the Midwest. Responsibility for transfer taxes is negotiable by contract but by default and customary practice is paid by the seller in Illinois. Title insurance rates in Illinois are filed with the Illinois Department of Insurance under a file-and-use framework. Illinois does not have a blanket statutory prohibition on prepayment penalties, though federal rules govern most conforming and FHA/VA loans. The Illinois Department of Financial and Professional Regulation (IDFPR) oversees mortgage licensees operating in the state.

Conventional loans dominated Illinois purchase originations in 2024, accounting for 78.4% of volume (79,181 loans) at a median rate of 6.75% — reflecting the state's large share of mid- to upper-tier home prices, particularly in the Chicago metro. FHA loans made up 14.5% of originations (14,640 loans), serving buyers with lower down payments or credit scores, and carried notably higher median total closing costs of $10,770. VA loans represented 6.2% of volume (6,243 loans), supported by military installations such as Scott Air Force Base in southwestern Illinois. USDA loans accounted for just 0.9% (902 loans), used primarily in qualifying rural counties in central and southern Illinois.