Your step-by-step roadmap to buying a home with confidence. From checking your credit to picking up the keys, we cover everything you need to know.
Click any step to jump directly to the details. Each step includes Michigan-specific tips and insider advice from our team.
Your credit score is the single biggest factor in determining what interest rate you qualify for. Before you start house hunting, pull your credit report from all three bureaus: Equifax, Experian, and TransUnion.
Minimum scores by loan type:
Pro tip: Get your free annual report at AnnualCreditReport.com. If your score needs work, focus on paying down credit card balances below 30% utilization and avoid opening new accounts.
A pre-approval letter tells sellers you are a serious, qualified buyer. It also tells you exactly how much home you can afford so you can search within your budget.
Documents you will need:
Michigan tip: Shop at least 2-3 lenders. We recommend starting with our preferred lender, James Taveggia at Union Home Mortgage, who specializes in Michigan buyers.
Get Pre-Approved NowA great buyer's agent is your advocate, negotiator, and guide throughout the entire process. They know the local market, have access to listings before they hit the public sites, and protect your interests during negotiations.
What to look for in an agent:
Why choose our team: With 20+ years, 1,100+ homes sold, and 253+ five-star Zillow reviews, the Daryl Wizinsky Team offers unmatched experience in Metro Detroit real estate.
Find Your AgentNow the fun begins. With your pre-approval in hand and your agent by your side, it is time to find the right home. Create a wishlist of must-haves and nice-to-haves, and be prepared to compromise on the latter.
Key considerations:
Michigan tip: Pay attention to property taxes, which vary widely by municipality. A home in one city may have property taxes double that of a similar home just across the border. Your agent can help you compare.
Start Your Home SearchWhen you find the one, your agent will prepare a purchase agreement that includes the offer price, contingencies, earnest money deposit, and proposed closing date.
Offer strategy considerations:
Negotiation tip: In competitive markets, consider writing a personal letter to the seller, offering a flexible closing date, or increasing your earnest money deposit to stand out.
A professional home inspection is your chance to uncover potential problems before you commit. A licensed inspector will evaluate the home's structure, systems, and overall condition.
What inspectors check:
Cost: Expect $300-$500 for a standard inspection. Optional add-ons include radon testing ($125-$175), sewer scope ($150-$300), and mold testing ($200-$400).
Michigan tip: Michigan basements are common in older homes. Always ask about waterproofing history and check for signs of previous water damage.
Your lender will order an appraisal to verify that the home is worth the amount you are borrowing. A licensed appraiser will visit the property, evaluate its condition, and compare it to recent comparable sales.
Possible outcomes:
Cost: $400-$600, paid by the buyer as part of closing costs.
Typically done 24-48 hours before closing, the final walkthrough is your last chance to verify the home's condition. This is not a second inspection; it is a confirmation that the property is in the agreed-upon condition.
Walkthrough checklist:
This is the day you officially become a homeowner. You will sign a stack of documents, wire your funds, and receive the keys to your new home.
Michigan closing costs for buyers typically include:
Michigan transfer tax note: The state transfer tax is 0.86% ($8.60 per $1,000) and the county transfer tax is 0.11% ($1.10 per $1,000). In Wayne County, the county rate is 0.22%. The seller typically pays these taxes in Michigan, but it is negotiable.
Bring to closing: Government-issued photo ID, cashier's check or wire transfer confirmation, and proof of homeowners insurance.
Congratulations, you are a homeowner! But there are a few important things to take care of right away.
Immediate to-do list:
Michigan homestead exemption: Filing the Principal Residence Exemption exempts your home from the 18-mill local school operating tax. This is significant savings. Do not forget to file by June 1 of the year you move in.
Down payment requirements vary by loan type. Conventional loans require as little as 3% down, FHA loans require 3.5%, and VA and USDA loans offer 0% down options for eligible buyers. For a $250,000 home, that ranges from $0 to $12,500. Our team can connect you with lenders who offer down payment assistance programs as well.
Closing costs in Michigan typically range from 2% to 5% of the purchase price. For a $250,000 home, expect $5,000 to $12,500. This includes title insurance, lender fees, appraisal, recording fees, and prepaid items like property taxes and insurance. The state transfer tax of $8.60 per $1,000 is typically paid by the seller.
The average home purchase takes 30 to 60 days from accepted offer to closing. Pre-approval can be done in 1 to 3 days, home searching varies by your criteria and market conditions, and the closing process is typically 30 to 45 days once under contract.
Michigan's Principal Residence Exemption (PRE) exempts your primary home from the 18-mill local school operating tax. You must file Form 2368 by June 1 to receive the exemption for that tax year. This can save homeowners hundreds or even thousands of dollars annually depending on your home's taxable value.
While not legally required, having a buyer's agent is strongly recommended. Your agent represents your interests exclusively, helps you find properties, negotiates on your behalf, coordinates inspections and closing, and guides you through the complex transaction process.
Minimum credit scores depend on the loan type: FHA requires 580 for 3.5% down, conventional typically requires 620, and VA loans have no official minimum but most lenders want 620 or higher. The higher your score, the better your interest rate and loan terms will be.
Michigan charges a state transfer tax of $8.60 per $1,000 of the sale price (0.86%). Counties add $1.10 per $1,000 (0.11%), except Wayne County which charges $2.20 per $1,000 (0.22%). The seller typically pays transfer taxes in Michigan, though this is negotiable in the purchase agreement.
Absolutely. A home inspection is one of the most important steps in the buying process. A licensed inspector evaluates the home's structure, roof, foundation, plumbing, electrical, HVAC, and more. Inspections typically cost $300 to $500 and can save you thousands by uncovering hidden issues before you close.
Get pre-approved and start searching for your dream home with our expert team by your side.