Michigan process · buyer view

The Michigan Home-Buying Process: Your Step-by-Step Checklist

This checklist walks first-time Michigan home buyers through every step from getting pre-approved to picking up the keys.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-6 weeks

Pre-Offer

Set your budget, line up financing, and get your agent relationship in writing before you start touring homes. In Michigan, the paperwork you sign at this stage controls how your agent gets paid.

  1. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Talk to 2-3 lenders so you can compare loan terms, interest rates, and closing-cost estimates. The lender will ask for tax returns, pay stubs, and bank statements so they can issue a pre-approval letter you can send with offers.

    You'll need

    • W-2s (last 2 years)
    • Pay stubs (last 30 days)
    • Bank statements (last 2 months)
    • Photo ID

    Cost: $0

  2. Set your total monthly housing budget

    YouBefore you tour homes

    Add up principal, interest, property taxes, homeowner's insurance, and any HOA dues to land on a true monthly cost. Plan for 2-5% of the purchase price in closing costs on top of your down payment.

    Cost: $0

  3. Sign a written buyer agency agreement

    Your agentBefore touring any MLS-listed home

    Michigan agents on the MLS cannot show you an MLS-listed home until you sign a written buyer agency agreement that spells out your agent's fee as a dollar amount or formula. This change took effect August 17, 2024 because of the NAR settlement, so plan to read it carefully before signing.

    You'll need

    • Photo ID

    Cost: $0

  4. Review the Michigan agency disclosure form

    Your agentFirst substantive meeting with the agent

    Michigan law requires your agent to give you the Disclosure Regarding Real Estate Agency Relationships form before you share confidential information like your maximum price or motivation. The form explains buyer agency, seller agency, and dual agency so you know whose interest your agent is representing.

    Cost: $0

  5. Confirm how your agent will be paid

    Your agentBefore signing the buyer agency agreement

    Michigan licensees must disclose the nature and source of their compensation in writing, including any money coming from the seller's side. Get clear on whether you'll owe your agent directly, whether the seller will cover the fee, or whether the difference will be rolled into the offer.

    Cost: varies

  6. Research Michigan property taxes for the area

    YouBefore making offers

    Michigan caps annual increases in a property's taxable value under Proposal A, but the cap resets to market value the year after a sale. That means your tax bill could be much higher than the current owner's, so ask the assessor or a title officer for an estimated uncapped tax amount before you set your price range.

    Cost: $0

  7. Tour homes with your agent

    Your agentOnce pre-approved and under buyer agency

    Visit homes that match your budget and must-haves so you can rule out features that look great online but feel wrong in person. Take notes and photos so the homes don't blur together after a long weekend of showings.

    You'll need

    • Pre-approval letter

    Cost: $0

Phase 2 of 7 · typically 1-3 days

Offer

Once you find the right house, you'll work with your agent to draft, price, and submit a written offer. Strong offers in Michigan attach financing proof and clear contingency timelines.

  1. Review the Michigan purchase agreement

    Your agentBefore signing your offer

    Most Michigan deals use the Michigan Realtors Residential Purchase Agreement, which has fields for price, financing, contingencies, deposit, possession, and prorations. Read every section before you sign so you understand the deadlines you'll be on the hook for once the seller accepts.

    Cost: $0

  2. Decide on offer price and terms

    Your agentBefore submitting the offer

    Compare recent sales of similar homes in the neighborhood with your agent and decide on a price, closing date, and any seller concessions you want to request. Weigh how competitive the market is so you don't either overpay or get outbid on a home you really want.

    Cost: $0

  3. Request the Seller's Disclosure Statement

    Your agentBefore signing the purchase agreement

    Michigan law says the seller has to give you the written Seller's Disclosure Statement before you sign a binding purchase agreement. Ask for it early because if you receive it after signing, you get a short window to back out of the deal.

    Cost: $0

  4. Request condo documents if buying a condominium

    Seller's sideBefore the purchase agreement becomes binding (condo only)

    If the home is a condo, Michigan law requires the seller to give you the master deed, bylaws, association rules, and recent association financials before the purchase agreement becomes binding. Read them so you understand monthly dues, assessment history, and any rules that affect how you can use the unit.

    You'll need

    • Master deed
    • Bylaws
    • Association rules
    • Recent association financial statements

    Cost: $0

  5. Decide on your earnest money deposit

    Your agentWhen drafting your offer

    Earnest money is the good-faith deposit you put down to show the seller you're serious. Common amounts in Michigan range from 1% to 3% of the purchase price, and the money goes into the broker's trust account, not the seller's pocket.

    Cost: varies

  6. Submit your written offer

    Your agentAfter agreeing on price and terms

    Your agent sends the signed purchase agreement to the listing agent along with your pre-approval letter and proof of funds if you're making a cash offer. Be ready for a quick response window — sellers usually expect an answer within 24-48 hours.

    You'll need

    • Signed purchase agreement
    • Pre-approval letter

    Cost: $0

Phase 3 of 7 · typically 3-7 days after acceptance

Under Contract

Once your offer is accepted, the clock starts on inspections, financing, and title work. Hitting each deadline is what keeps your deposit safe.

  1. Deliver earnest money to the broker's trust account

    Your agentWithin the deposit deadline in your contract (often 1-3 business days)

    Michigan brokers are required to deposit your earnest money into a separate trust account within a few banking days, never their personal or business account. Get a written receipt and confirm the bank where the funds are held in case there's ever a dispute.

    Cost: Per contract — typically 1-3% of purchase price

  2. Read the Seller's Disclosure Statement carefully

    YouAs soon as you receive it

    Look for past leaks, structural issues, environmental hazards, and known defects. If the seller delivered the disclosure to you late, Michigan gives you a limited right to back out — confirm the timing with your agent right away so you don't lose the option.

    You'll need

    • Seller's Disclosure Statement

    Cost: $0

  3. Open title and select a title company

    Escrow / titleWithin the first week after acceptance

    Michigan closings are usually handled by a title company rather than an attorney. You generally get to choose the title company under federal rules, so compare quotes and confirm the company is licensed before scheduling.

    You'll need

    • Executed purchase agreement

    Cost: varies

  4. Submit your formal loan application

    LenderWithin 3-5 days of acceptance

    Send your chosen lender the signed purchase agreement plus any updated financial documents they request. Your loan officer will order the appraisal and start the underwriting process once the application is complete.

    You'll need

    • Signed purchase agreement
    • Updated bank statements
    • Updated pay stubs

    Cost: $0-500 (application fee, if any)

  5. Review HOA or subdivision covenants if applicable

    Seller's sideFirst week under contract (HOA properties)

    If the home is in a planned subdivision or HOA, ask for the recorded restrictive covenants, fee schedule, and any pending assessments. Michigan law requires sellers to flag association obligations on the disclosure form, but you should still read the underlying documents.

    You'll need

    • Recorded covenants
    • HOA fee schedule
    • Recent HOA meeting minutes

    Cost: $0

Phase 4 of 7 · typically 7-14 days from acceptance

Inspection

Inspections are your chance to find problems before you own them. Stick to the contract deadlines so you keep your right to negotiate or walk away.

  1. Hire a licensed home inspector

    InspectorWithin the inspection contingency window

    Pick an inspector with strong reviews and ask if they cover the roof, electrical, plumbing, HVAC, foundation, and major appliances. Plan to attend the inspection so you can see the issues firsthand and ask questions on the spot.

    Cost: $400-800 typical

  2. Order a radon test

    InspectorDuring the inspection window

    Large parts of Michigan sit in elevated-radon zones according to the EPA, and the Seller's Disclosure Statement asks sellers to report known hazardous conditions including radon. A short-term test runs 2-7 days, so book it early so the result is back before your inspection deadline.

    Cost: $100-200 typical

  3. Review the federal lead-based paint disclosure

    Seller's sideBefore the offer becomes final for pre-1978 homes

    If the home was built before 1978, federal law requires the seller to give you a written lead-based paint disclosure and the EPA pamphlet, plus a 10-day window to test for lead. Sign the disclosure and decide whether you want to use the testing window before it lapses.

    You'll need

    • Lead-based paint disclosure
    • EPA pamphlet

    Cost: $0 (testing extra if ordered)

  4. Inspect well, septic, and mineral rights for rural properties

    InspectorDuring the inspection window (rural or waterfront homes)

    If the home uses a private well or septic system, schedule a separate inspection and water test — these aren't always covered by a standard home inspection. Ask the title company to flag any severed mineral or oil-and-gas rights so you know exactly what surface and subsurface rights come with the property.

    You'll need

    • Well water test results
    • Septic inspection report
    • Preliminary title commitment

    Cost: $300-700 typical

  5. Confirm waterfront and riparian rights if applicable

    Your agentDuring inspections (waterfront properties)

    Michigan has thousands of lakes and major Great Lakes shoreline, and riparian rights only attach to property that physically touches a natural waterbody. Ask your agent and title officer to verify whether you'll own the frontage outright, share it through an easement, or just have a deeded access path.

    You'll need

    • Survey
    • Recorded easements

    Cost: $0

  6. Negotiate repairs or credits

    Your agentBefore the inspection contingency expires

    Use the written inspection reports to ask for repairs, a price reduction, or a closing credit. Send any requests in writing through your agent before the inspection contingency deadline so you keep your right to walk away if the seller refuses.

    You'll need

    • Inspection reports

    Cost: $0

Phase 5 of 7 · typically 2-4 weeks

Loan & Appraisal

While inspections wrap up, your lender finishes underwriting and orders the appraisal. Quick responses to document requests keep you on track for the closing date.

  1. Send any documents your underwriter requests

    YouThroughout underwriting

    Underwriters often ask for extra paystubs, explanations of large deposits, or updated employment letters. Aim to respond within 24-48 hours so your loan stays on schedule and doesn't push back your closing date.

    You'll need

    • Updated paystubs
    • Bank statements
    • Letters of explanation

    Cost: $0

  2. Confirm the appraisal is scheduled

    LenderWithin the first 2 weeks under contract

    Your lender will order an appraisal to confirm the home is worth what you're paying. Check in to make sure it's been ordered early in the process, since appraiser availability can delay closings.

    Cost: $500-700 typical

  3. Lock your mortgage interest rate

    LenderOnce a closing date is firm

    Rate locks usually run 30-60 days and protect you from rising rates while your loan is being processed. Ask your lender about the lock fee, the expiration date, and what happens if your closing slips past it.

    Cost: $0-1,000

  4. Decide how to handle a low appraisal

    Your agentWithin a few days of receiving the appraisal

    If the home appraises below your offer, your lender will only finance based on the appraised value, leaving a gap. Talk through your options with your agent — bring extra cash, renegotiate price, dispute the appraisal, or walk away under your financing contingency.

    You'll need

    • Appraisal report

    Cost: varies

  5. Review the preliminary title commitment

    Escrow / titleWithin 2-3 weeks of going under contract

    The title company will send a written commitment listing the seller, legal description, exceptions, and any liens or easements. Read it with your agent and flag anything that surprises you so the title company can clear it before closing.

    You'll need

    • Title commitment

    Cost: $0

Phase 6 of 7 · typically 5-7 days before closing

Pre-Closing

The last week before closing is about paperwork, money, and one final look at the property. Confirm every number before you wire funds.

  1. Schedule the final walkthrough

    Your agent24-48 hours before closing

    Walk through the home within 24-48 hours of closing to confirm it's in the agreed condition and any negotiated repairs were completed. Bring your agent and the inspection report so you can spot anything that changed since the last visit.

    You'll need

    • Inspection report
    • Repair receipts

    Cost: $0

  2. Review the Closing Disclosure

    LenderAt least 3 business days before closing

    Federal law requires the lender to give you the Closing Disclosure at least 3 business days before closing. Compare it line-by-line against your Loan Estimate and ask your lender to fix any number that doesn't match what you were promised.

    You'll need

    • Loan Estimate
    • Closing Disclosure

    Cost: $0

  3. Buy homeowner's insurance

    YouAt least 1 week before closing

    Your lender will require a hazard insurance policy that meets minimum coverage limits and lists them as a loss payee. Get quotes from multiple insurers, choose a policy, and send proof to your lender at least a week before closing.

    You'll need

    • Policy declaration page
    • Proof of paid first-year premium

    Cost: $800-2,000 first-year typical

  4. Confirm your owner's title insurance policy

    Escrow / titleBefore closing

    Title insurance protects you against title defects that show up after closing, like undisclosed liens or boundary errors. The lender's policy is usually required and the owner's policy is optional, but Michigan title officers strongly recommend buying both.

    You'll need

    • Title commitment

    Cost: Varies — typically 0.5-1% of price

  5. Wire your closing funds to the title company

    You1-2 days before closing

    The title company will send written wire instructions for your down payment and closing costs. Call the title company at a number you find independently — not from the wire email — to confirm the account before sending, because wire fraud is common in Michigan real estate.

    You'll need

    • Closing Disclosure
    • Wire confirmation

    Cost: Per Closing Disclosure

Phase 7 of 7 · typically 1-2 hours plus same-day funding

Closing

Closing day is when ownership transfers, your loan funds, and you finally get the keys. A few small steps after closing protect your tax savings and your records.

  1. Attend closing at the title company

    Escrow / titleDay of closing

    Michigan closings are usually held at the title company's office, where the title officer walks you through every document. Bring a government-issued photo ID and any cashier's check the title company asked for if you weren't able to wire.

    You'll need

    • Photo ID
    • Cashier's check (if applicable)

    Cost: $0 (already wired)

  2. Sign your loan and closing documents

    Escrow / titleDuring closing

    You'll sign the promissory note, mortgage, deed, and dozens of disclosures during closing. Read what you can, ask questions on anything that doesn't match what your lender or agent told you, and don't sign anything you don't understand.

    Cost: $0

  3. Receive the keys and recorded deed

    Escrow / titleRight after recording

    Once the lender funds and the title company records the deed, the home is yours. The title company will typically hand you the keys and remotes and send the recorded deed to you by mail a few weeks later.

    Cost: $0

  4. File the Principal Residence Exemption with the assessor

    YouWithin a few weeks of closing

    If you'll live in the home as your main residence, file the Principal Residence Exemption affidavit with the local assessor so school operating millage is removed from your tax bill. The form is short and free to file, and missing the filing deadline costs you the exemption for the year.

    You'll need

    • Principal Residence Exemption affidavit (Form 2368)

    Cost: $0

  5. Update your address and utility accounts

    YouFirst week after closing

    Switch utilities into your name, forward your mail through the USPS, and update your driver's license and voter registration. Hold onto your Closing Disclosure and recorded deed in a safe place — you'll need them at tax time and when you eventually refinance or sell.

    You'll need

    • Closing Disclosure
    • Recorded deed (when received)

    Cost: varies

Sources

  1. [1] MCL §339.2517 — Disclosure of Agency Relationships
  2. [2] MCL §339.2517 — Compensation Disclosure and Agency Relationships
  3. [3] NAR Settlement — Buyer Broker Compensation Practice Changes
  4. [4] MCL §339.2517 — Compensation Disclosure
  5. [5] NAR Settlement — MLS Policy Changes, August 17, 2024
  6. [6] MCL §324.61501 — Michigan Oil and Gas Act
  7. [7] MCL §324.30101 — Natural Resources and Environmental Protection Act, Part 301
  8. [8] EGLE — Inland Lakes and Streams Permits
  9. [9] MCL §339.2517 — Disclosure Regarding Real Estate Agency Relationships
  10. [10] Michigan DIFS — Title Insurance Regulation
  11. [11] RESPA Section 9 — Prohibition on Required Use of Title Services
  12. [12] MCL §559.184 — Disclosure to Purchaser of Condominium Unit
  13. [13] Michigan Realtors — Standard Forms Library
  14. [14] MCL §339.2512(1)(c) — Mishandling of Client Funds
  15. [15] LARA Bureau of Professional Licensing — Trust Account Requirements
  16. [16] MCL §565.957 — Seller Disclosure Statement, Sections 9 and 10
  17. [17] MCL §559.184 — Michigan Condominium Act Disclosure
  18. [18] HUD Lead Disclosure Rule — 24 CFR Part 35
  19. [19] EPA Lead Disclosure Requirements for Real Estate
  20. [20] MCL §211.7cc — Principal Residence Exemption
  21. [21] Michigan Department of Treasury — Principal Residence Exemption
  22. [22] MCL §211.27a — Taxable Value Cap and Uncapping on Transfer
  23. [23] Michigan Department of Treasury — Property Tax Overview
  24. [24] MCL §565.957 — Seller Disclosure Statement, Section 6
  25. [25] EPA Map of Radon Zones by State and County
  26. [26] MCL §565.957 — Required Disclosure Statement Form
  27. [27] MCL §565.954 — Buyer's Right to Rescind After Late Disclosure

Last updated May 15, 2026