Buying a Home in Michigan with Less Closing Costs

August 09, 2022 | 3 min read



You have finally found the home you can call your own. You have also set the budget right for a downpayment. But there is one more aspect to consider – closing costs. Whether buying a home in Michigan or refinancing your mortgage, wisely plan for the closing costs to make the process flow smoothly.

You have finally found the home you can call your own. You have also set the budget right for a downpayment. But there is one more aspect to consider – closing costs. Whether buying a home in Michigan or refinancing your mortgage, wisely plan for the closing costs to make the process flow smoothly.

What Are Closing Costs?

Simply put, it is the cost of closing the transaction when finally buying a home in Michigan. The expenses often include:

  • Application fee
  • Processing fee
  • Attorney fee
  • Title insurance
  • Homeowners insurance
  • Property taxes
  • Lender fee
  • Mortgage insurance
  • Discount points, etc.

Although called closing costs, you may be asked to pay the amount before signing your final paperwork or right on the signing day.

How Much Are Closing Costs?

Closing costs in Michigan can come as a shocker to many. On average, you can expect to pay anywhere between 2% and 6%, with the average being 3% of the purchase price. Mostly, these fall upon homebuyers as one-time out-of-pocket expenses. So, for instance, if you are buying a home in Michigan for $300,000, the closing costs might range from $6,000 to $15,000. You cannot even borrow this amount, or it will add to your loan ratio, leaving you unqualified.

Are Closing Costs Negotiable?

As a homebuyer, you can sometimes negotiate the closing costs. It is the fee to process the transaction, and you can deal with the seller to cover a portion for you. If presented with a number higher than your expectations, you don’t have to settle for it. You can work with your agent and the seller to bring it down.

Strategies to Lower Your Closing Costs

The homeowner’s insurance, origination fee, discount points, loan application fee, title insurance, underwriting fee, and real estate commissions are often negotiation expenses. You can roll these expenses into your mortgage and pay interests over the life of the loan. Besides, you must try and close towards month end to reduce your cash outlay. Next, talk to multiple lenders, compare your fees, and work with your lender to examine your options. Try to push back on unreasonable (or even vague) lending fees. Some nickel and dime you, and you must be aware of that. Furthermore, even your agent can give up a portion of their commissions. Find the area’s average, shop around for the best value, and settle for an amount viable for all parties. There may be assistance from banks, other state finance agencies, or governmental programs for qualifying homebuyers. You can also convince the seller to contribute to the costs. However, if you are in a competitive market, the seller may be unwilling to budge the expenses.

Buying a Home in Michigan Is Stress-Free with RealtyOffer

Closing costs are increasing countrywide. But you can still cut back on some of it with RealtyOffer. Secure your dream property with our qualified real estate agents, who contribute part of their commission toward your closing costs. You can also use this contribution to buy down your lender interest rate! Want to know more? Visit https://realtyoffer.com/buy to learn how you can bring less money to the closing table. We will help you get started.

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