Home Buying February 25, 2024 5 min read

Understanding Closing Costs in Michigan

A comprehensive guide to closing costs when buying a home in Michigan, including what to expect and how to prepare.

Closing costs explained

Closing Costs Breakdown

Lender Fees

Fees charged by the mortgage lender for processing your loan

Origination Fee

0.5% to 1% of loan amount

Charged for processing the loan application and underwriting

Application Fee

$300 to $500

Covers the cost of processing your application

Credit Report Fee

$30 to $50

Cost of pulling your credit reports

Underwriting Fee

$300 to $900

Cost of evaluating and verifying your loan application

Third-Party Fees

Fees for services provided by parties other than your lender

Appraisal Fee

$300 to $600

Professional evaluation of the home's value

Home Inspection

$300 to $500

Detailed inspection of the home's condition

Title Search

$200 to $400

Research of property records to verify ownership

Title Insurance

0.5% to 1% of purchase price

Protection against title defects

Government Fees

Fees charged by government entities

Recording Fees

$30 to $250

County charges for recording the deed

Transfer Taxes

Varies by location

State and local taxes on property transfers

Property Taxes

Varies by location and timing

Prorated property taxes due at closing

Tips to Save on Closing Costs

Shop Around for Lenders

Compare loan estimates from multiple lenders to find the best rates and fees

  • Get at least 3 loan estimates
  • Compare fees line by line
  • Ask about fee matching
  • Negotiate when possible

Consider Closing Cost Assistance

Explore programs that can help cover closing costs

  • Check state assistance programs
  • Ask about lender credits
  • Negotiate seller contributions
  • Research local programs

Close at Month End

Minimize prepaid interest charges

  • Schedule closing near month end
  • Reduce prepaid interest
  • Coordinate with all parties
  • Plan ahead for timing

Review Fees Carefully

Identify unnecessary fees and negotiate

  • Question unfamiliar charges
  • Ask for fee explanations
  • Challenge duplicate fees
  • Verify required services

Estimate Your Closing Costs

Use our calculator to get an estimate of your closing costs based on your purchase price and location.

Calculate Closing Costs

Need Help Understanding Closing Costs?

Our mortgage experts can help you understand and prepare for closing costs.