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- Written by Olivia Huntley
Closing Costs 101: What Homebuyers Need to Know in Metro Detroit & Beyond
Buying a house is exciting, but unexpected expenses, like closing costs, can catch buyers off guard. These fees cover everything from lender charges to government taxes and typically range from 2% to 5% of the house price. If you’re buying in Detroit, Oakland County, or Genesee County, having knowledge about closing costs ahead of time can make you a wiser budgeteer and ready you for surprises.
What Are Closing Costs & How Much Should You Expect?
Closing costs are fees paid at the end of a real estate transaction to cover legal, administrative, and lender services. Purchasers typically pay for:
- Loan Origination Fees – Charged by lenders for processing your mortgage.
- Appraisal & Inspection Fees – Confirms the home’s value and condition.
- Title Insurance & Escrow Fees – Protects buyers from challenges in ownership.
- Property Taxes & Homeowner’s Insurance – Typically prepaid at closing.
In Metro Detroit, the closing costs typically range from 3% to 5% of the home price. On a $250,000 home, plan to spend $7,500 to $12,500 on the closing costs.
Smart Ways to Save on Closing Costs
There are a few methods to minimize closing costs and retain more of your funds:
- Negotiate with the Seller – Some sellers will consent to paying a share of your closing costs.
- Compare Lenders & Title Companies – Shopping around can lead to lower fees.
- Seek First-Time Homebuyer Assistance – Programs like MSHDA Down Payment Assistance offer financial assistance.
Close at the End of the Month – This will help reduce prepaid interest charges.
See What You Qualify For
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