The Home Closing Process in Michigan

Once your purchase agreement is signed by both sides, you move into what we call the "under contract" or escrow period. The signed contract and your earnest money deposit go to the title company, which opens a title order and starts the real work behind the scenes. Over the next several weeks the buyer completes inspections, the lender orders an appraisal and underwrites the loan, the title company runs a full title search and clears any issues, and contingencies in the contract get satisfied one by one. With a mortgage, this typically takes about 30 to 45 days, in line with national averages for financed purchases. Cash deals can close in a week or two. Coming from my title and abstracting background, I keep a running checklist so nothing slips between offer and closing day.

A title search is a deep review of public records to confirm the seller truly owns the property and to surface anything that could cloud your ownership. As a former abstractor, this is the part I love. We trace the chain of title back through prior deeds and look for unpaid property taxes, mortgages that were never released, mechanic's liens, easements, judgments against past owners, and boundary or legal-description problems. The title company is the neutral party that holds your deposit in escrow, coordinates the search, clears defects, prepares the closing figures, conducts the signing, disburses funds, records the deed, and issues your title insurance. In Michigan most closings happen at a title office, not an attorney's office, so the title company is the hub the whole transaction runs through.

Title insurance protects against ownership problems that a title search might not catch, like a forged signature in the chain, an undisclosed heir, or a recording error. There are two policies. The lender's policy protects your mortgage lender's lien up to the loan amount, and lenders require it. The owner's policy protects you, the buyer, for as long as you own the home; if someone surfaces years later claiming an interest, you're covered. In Michigan it's customary for the seller to pay for the owner's policy and the buyer to pay for the lender's policy, though everything is negotiable in the contract. I always encourage buyers to keep the owner's policy even when they're paying cash, because it is a one-time premium that protects what is usually your largest asset. For coverage specifics, confirm the terms with the title underwriter.

If you're financing, your lender must give you a Closing Disclosure, a five-page form that itemizes your final loan terms, interest rate, monthly payment, closing costs, and the exact cash you need to bring. By federal law under the CFPB's "Know Before You Owe" rule, you must receive that final disclosure at least three business days before you sign your loan documents. Those three days exist so you can compare the figures against the Loan Estimate you got earlier and ask questions about any charge that looks off. The clock counts business days including Saturdays but not Sundays or federal holidays, and certain last-minute changes can reset it and push your closing. I tell every buyer to open and read that disclosure the moment it arrives, because catching a problem on day one is far easier than scrambling on closing morning.

The final walk-through is your chance to confirm the home is in the condition you agreed to buy, usually done within a day or two of closing so it reflects the most current state of the property. It is not a re-inspection, it is a verification. I walk through with my buyers and we test that the heat and air conditioning run, faucets and toilets work, appliances that are staying actually fire up, windows and doors open and lock, and the seller's belongings and debris are gone. We also confirm any repairs the seller agreed to were completed and that fixtures named in the contract, like blinds or a ceiling fan, are still there. Make sure utilities stay on through closing so you can test everything. If we find a problem, it is far easier to resolve before you sign than after.

In Michigan, closing is typically held at the title company. The buyer signs first because there's more paperwork, often the mortgage note, the mortgage itself, the Closing Disclosure, and various loan and title affidavits; the seller signs a smaller stack, including the deed that transfers ownership. A closing agent walks both sides through the documents, and the whole appointment is usually well under an hour. Bring a government-issued photo ID, and confirm your funds in advance. Most title companies require a wire transfer for the cash to close rather than a cashier's check, especially for larger amounts. Because I've sat on the closing side of the table, I prep my clients on what each signature means so nothing is a surprise. For tax or legal questions about a specific document, it's worth consulting an attorney or CPA before you sign.

Michigan is generally a "wet closing" state, meaning funds are disbursed at or right around the closing table rather than days later. After everyone signs, the buyer's loan proceeds and cash to close are released, the seller's existing mortgage and liens are paid off, and the seller receives their net proceeds. The title company then takes the signed, notarized deed to the county register of deeds to be recorded, which is what legally puts the transfer on public record. Possession, meaning when you actually get the keys, is set by your purchase agreement. Many Michigan deals give possession at closing, but it's common to negotiate possession a few days after closing, sometimes with the seller paying a daily occupancy fee. Always read the possession terms in your contract so you know the exact day the home becomes yours to occupy.

Closing costs are split by custom and by what you negotiate in the contract. Buyers typically cover lender-related charges like the appraisal, loan origination, the lender's title policy, and prepaid items such as homeowners insurance and an escrow cushion for taxes. Sellers customarily pay the real estate commission, the owner's title insurance policy, and the Michigan real estate transfer tax. That transfer tax is a state charge of $3.75 per $500 of sale price plus a county charge of $0.55 per $500 in most counties, and the register of deeds won't record the deed until it's paid. On a $300,000 sale in a typical county that's about $2,580 in combined transfer tax. Everything here is negotiable, and in a softer market sellers sometimes contribute toward a buyer's costs. I prepare an estimated net sheet early so there are no surprises at the table.

This is one of the most serious risks in any modern closing, and I bring it up with every client. Criminals send spoofed emails that look like they're from your agent or title company with fake wiring instructions, and the money can be gone in minutes. The rule I live by, and the one the CFPB recommends, is simple: never trust wiring instructions that arrive by email or text, even if they look legitimate. Before you send a single dollar, call the title company using a phone number you obtained in person at the start of the transaction, and verbally verify the account name and number. Be suspicious of any last-minute change to instructions, because that is the classic fraud pattern. When in doubt, call me. I would much rather take a two-minute confirmation call than see a client lose their down payment.

Closings slip for predictable reasons: loan underwriting takes longer than expected, an appraisal comes in low, the title search turns up a lien or boundary issue that needs clearing, a final walk-through reveals an unfinished repair, or a buyer makes a big purchase or job change that disrupts loan approval. Last-minute changes to your loan terms can even reset the three-day Closing Disclosure window. The best defense is staying responsive: get your documents to the lender quickly, don't open new credit or move large sums between accounts while under contract, and keep your cash to close ready. With my appraisal and title experience, I can often spot a problem early, whether it's an appraisal concern or a title defect, and get it solved before it threatens your closing date. Clear communication every week is what keeps a Michigan closing on schedule.