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 Breakdown
Lender Fees
Fees charged by the mortgage lender for processing your loan
Origination Fee
0.5% to 1% of loan amountCharged for processing the loan application and underwriting
Application Fee
$300 to $500Covers the cost of processing your application
Credit Report Fee
$30 to $50Cost of pulling your credit reports
Underwriting Fee
$300 to $900Cost of evaluating and verifying your loan application
Third-Party Fees
Fees for services provided by parties other than your lender
Appraisal Fee
$300 to $600Professional evaluation of the home's value
Home Inspection
$300 to $500Detailed inspection of the home's condition
Title Search
$200 to $400Research of property records to verify ownership
Title Insurance
0.5% to 1% of purchase priceProtection against title defects
Government Fees
Fees charged by government entities
Recording Fees
$30 to $250County charges for recording the deed
Transfer Taxes
Varies by locationState and local taxes on property transfers
Property Taxes
Varies by location and timingProrated 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 CostsNeed Help Understanding Closing Costs?
Our mortgage experts can help you understand and prepare for closing costs.