Average Closing Costs in Michigan: What to Expect When Buying a Home
Wondering how much you’ll pay in closing costs when buying a home in Michigan? Here’s what first-time buyers and new residents should know — with real numbers, real talk, and tips to save.
Questions we hear often:
Q: How much are typical closing costs for a home in Michigan?
A: Most buyers pay between 3%–5% of the purchase price in closing costs. On a $200,000 home, that’s $4,000–$10,000.
Q: Can I roll closing costs into my mortgage in Michigan?
A: Sometimes, yes. Certain loan programs or seller concessions can reduce or roll in closing costs, depending on your situation.
Let’s keep going…
What Are Closing Costs, Anyway?
Closing costs are the out-of-pocket fees you’ll pay at the very end of your home purchase — typically due on the day you close and get your keys. These costs cover everything from the loan setup to legal paperwork to title insurance. Some costs are directly related to the loan. Other required funds at closing are “prepaids” or “escrow funding.”
In Michigan, closing costs are usually between 3% and 5% of the home’s purchase price. That means:
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On a $250,000 home, you might expect to pay $7,500 to $12,500* in closing costs.
Don’t worry — not all of this comes from your pocket. There are also ways to reduce or even avoid certain fees.
Typical Closing Costs in Michigan (Line by Line)*
Here’s a breakdown of what closing costs might include when buying a home in Michigan. Each situation is unique and final closing costs are determined according to the specific home, borrower, lender, title co., etc. This estimate is to help you understand what is possible. Let’s schedule a time to tailor an estimate to your situation: Schedule a call We would love to help!
Lender Fees
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Loan Underwriting Fee: $1,000–$1,200
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Processing Fees: $300–$600
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Credit Report Fee: $125+
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Appraisal Fee: $500–$700
️ Title & Legal Fees
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Title Search and Insurance: $700–$1,500
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Closing/Settlement Fee: $200–$600
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Recording Fees (with county): $50–$150
Prepaid Items
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Homeowners Insurance (first year): ~$1,000-$1,500
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Property Taxes (prorated): Varies by county and date
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Prepaid Interest: daily charge based on closing date
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Escrow Setup (taxes + insurance): several months’ worth in advance
*Closing Costs could be higher. A complete underwriting approval, including satisfactory
appraisal and clear title work is required with each loan. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity
What’s the Average Total?
For most first-time homebuyers in Michigan, total closing costs range between $7,500 and $12,500 — depending on:
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Purchase price
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Loan type
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Property taxes in your area
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Timing of the transaction
- Credit Score
- And other factors
We can give you a detailed Loan Estimate early in the process so you’ll never be surprised.
Closing Costs could be higher. A complete underwriting approval, including satisfactory
appraisal and clear title work is required with each loan. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity
Can Sellers Help Cover Closing Costs?
Yes! In Michigan, it’s possible for sellers to contribute to closing costs — especially if you negotiate this in your offer.
This is called a seller concession, and it can save you thousands out of pocket.
We’ll help you structure your offer to take full advantage of this if it fits your situation.
️ How to Lower Your Closing Costs
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Work with a local lender (like us!). We keep fees transparent and competitive.
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Get a detailed quote upfront. You should know exactly what you’ll owe — and why.
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Ask about lender credits. In some cases, we can cover certain fees in exchange for a slightly higher interest rate.
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Bundle services. Sometimes using the same company for title, escrow, and insurance can help lower total costs.
- For more resources that can help you prepare for your first home mortgage, check out our First Time Home Buyer Programs in Michigan guide.
We Make Michigan Mortgages Simple
At JPAL Mortgage, we’re proud to help first-time buyers and new residents across Michigan understand exactly what they’re paying — and why.
Call us at 616-465-5725. We would love to speak with you!
Jumpstart your mortgage with an appraisal reimbursement from JPAL!
Simply fill out this form and when you finance a home with us, we’ll reimburse the cost of your appraisal (up to $600) at closing.** Let’s work together!
**All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. Appraisal reimbursement available for loans closed with JPAL Mortgage LLC and applied at closing. NMLS ID #2189752 | Equal Housing Opportunity.
Buying Your First Home in Michigan?
You’ve got questions. We’ve got answers — and real guidance to help you feel confident from pre-qualification to closing day.
JPAL Mortgage is proudly based in Michigan, where its two owners were born and raised! We love this state and have traveled it far and wide. It’s a passion of ours to help make a smooth landing here in Michigan! Whether you’re buying in Grand Rapids, Holland, Kalamazoo, Hudsonville, Zeeland, or anywhere in the state, we’ll walk you through your loan options and show you how to make your numbers work. We shop amazing mortgage lenders like United Wholesale Mortgage in Michigan and find you the right mortgage for your needs.
JPAL Mortgage – Your best friend in home finance.
All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity