The down payment is the number that gets all the attention. Most buyers spend months, sometimes years, saving toward it. What surprises them at the closing table is everything else.
In West Michigan, where the average sale price in Q1 2026 was $378,273, a buyer with 5 to 10 percent down might arrive at closing expecting to write one check. The actual costs are usually higher than that by a meaningful margin.
Here is what to plan for beyond the down payment.
What Are Closing Costs, and How Much Are They in Michigan?
Closing costs are the fees required to complete a real estate transaction. They are separate from the down payment and are typically paid at or before closing.
In Michigan, buyer closing costs generally run between 2 and 5 percent of the purchase price. On a $378,273 home, that’s roughly $7,500 to $18,900. The range is wide because it depends on loan type, lender, purchase price, and what’s negotiated in the purchase agreement.
The specific items that make up buyer closing costs:
Lender fees: Origination, underwriting, and processing charges. These vary by lender. Ask for the federal Loan Estimate document, which breaks down all lender charges, within three business days of submitting your application.
Appraisal fee: Ordered by the lender to confirm the home’s value supports the loan. In West Michigan in 2026, appraisal fees typically run $400 to $700 depending on property type and location.
Credit report fee: Usually $25 to $75 for the lender to pull your credit.
Title search and title insurance: A title search confirms there are no liens, disputes, or claims against the property. Title insurance protects against future claims. Michigan transactions close through title companies or real estate attorneys. Buyers typically pay for a lender’s title policy; owner’s title insurance and who pays for what is negotiable.
Recording fees: Paid to the county to record the deed and mortgage. Generally $100 to $200 in Michigan.
One note: Michigan’s state and county transfer taxes are customarily paid by the seller, not the buyer. Your title company will clarify who is responsible for what based on your specific purchase agreement.
Lending fees, tax rates, and local conventions change. Always confirm current figures with your lender and title company.
What Are Prepaid Items, and Why Do They Cost Extra?
Prepaid items are not fees. They are costs you pay upfront to establish escrow accounts or satisfy lender requirements. They often catch buyers off guard because they show up in addition to closing fees.
Homeowner’s insurance, first-year premium: Your lender requires proof of insurance before closing. The first year is typically paid in full at or before closing. Homeowner’s insurance in West Michigan runs roughly $1,200 to $2,400 per year for a median-priced home, depending on the property’s age, location, coverage level, and your claims history.
Prepaid mortgage interest: You pay interest from your closing date through the end of that calendar month. If you close on the 15th, you owe 16 days of interest. Depending on your loan terms and the size of the loan, this might run $300 to $700.
Property tax escrow: Lenders often require two to three months of property taxes deposited into an escrow account at closing. In Ottawa County, where Jenison sits, effective property tax rates run roughly 1.3 to 1.5 percent of assessed value. On a $378,273 home, two to three months of escrow might run $400 to $1,200 depending on your taxing district and PRE exemption status.
Mortgage insurance escrow, if applicable: If your down payment is less than 20 percent and you’re using a conventional loan, you may owe private mortgage insurance (PMI). Some lenders collect an initial reserve upfront.
What Does a Home Inspection Cost?
A home inspection is not required by Michigan law, but it is strongly recommended, and most buyers include one. For a typical West Michigan home, a general inspection runs $350 to $600 depending on size and age.
Additional inspections you might add:
- Radon testing: $100 to $200, often added to the general inspection. Michigan has elevated radon risk in several counties, including Ottawa and Kent.
- Sewer scope: $150 to $300. Useful for older homes or if there’s any question about the sewer lateral.
- Well and septic inspection: Required by some lenders for rural properties. Prices vary.
- Chimney inspection: $100 to $250 if the home has a fireplace or wood-burning stove.
Budget $400 to $800 for inspection on a typical Jenison or West Michigan home, more if you add specialty items.
These costs are paid directly to the inspector and are non-refundable, whether you proceed to closing or not. That’s not a gotcha. The inspection is exactly how you find out whether to proceed.
What Reserves Should You Keep After Closing?
Most financial planners recommend keeping three to six months of housing costs in reserve after closing. Some lenders also require documented reserves before approving a loan.
The practical reason: homeownership comes with unexpected costs. A furnace fails in January. A roof develops a problem in spring. If savings are fully depleted by the down payment and closing costs, there’s no buffer for what comes next.
On a $378,000 home, a 1 percent annual maintenance reserve is roughly $3,780 per year. If you can close with three to six months of that still in the bank ($945 to $1,890), you have a reasonable cushion.
This is one of the most underweighted parts of the buyer readiness conversation, and it’s worth building into the plan before the search starts rather than realizing it after an accepted offer.
What About Moving Costs?
Moving is not part of the closing transaction, but it happens immediately after and should be budgeted in advance.
Local moves in West Michigan typically run $800 to $2,500 for a professional moving company, depending on distance, volume, and timing. Weekend and end-of-month slots cost more. Summer moves are typically pricier than fall or winter.
A DIY move with a rented truck runs $300 to $800 for local distances. Budget for packing supplies, fuel, and any help you need.
What Does the Total Picture Look Like?
For a $378,273 home purchased with a 5 percent down payment ($18,914):
| Cost Category | Estimated Range |
|---|---|
| Down payment (5%) | $18,914 |
| Closing costs (2-5%) | $7,500 to $18,900 |
| Prepaid items (insurance, escrow, interest) | $2,000 to $5,000 |
| Inspection fees | $400 to $800 |
| Moving costs | $800 to $2,500 |
| Recommended post-close reserves | $2,000 to $5,000 |
| Total estimated need | $31,614 to $51,114 |
These are ranges for planning purposes. Actual costs depend on loan type, lender, property, negotiated terms, and timing. Your lender will provide a Loan Estimate with specific projected fees. Your title company will provide a Closing Disclosure at least three days before closing with the final figures.
A 5 percent down payment on a $378,000 home requires roughly $32,000 to $51,000 in total cash to close comfortably, including reserves. The gap between the down payment alone and the total amount needed is where buyers consistently get surprised.
Knowing that gap in advance is how you avoid being the buyer who gets to the table ready, then hits a wall because the numbers were narrower than expected.
Questions Buyers Actually Ask About This
Q: Can I ask the seller to cover some of my closing costs? A: Yes. Seller concessions, where the seller contributes toward the buyer’s closing costs, are negotiable as part of the purchase offer. Whether a seller will agree depends on how competitive the market is, how motivated the seller is, and how your offer is structured overall. Note that most loan programs cap the amount a seller can contribute. Ask your lender what limits apply for your loan type.
Q: What is the Loan Estimate, and when do I get it? A: The Loan Estimate is a federal disclosure document that breaks down your projected loan terms, monthly payment, and all closing costs. Lenders are required to provide it within three business days of receiving your application. Read it carefully and compare it across lenders if you are shopping. It is your clearest window into what the transaction will actually cost you.
Q: Can closing costs be rolled into the loan? A: Generally, no. Closing costs are paid at closing and cannot typically be added to the loan balance on a purchase transaction. Some loan programs have specific rules around this. Ask your lender what is possible for your situation.
Q: How much should I keep in savings after closing? A: Most financial planners recommend three to six months of housing costs as a post-close reserve. Even a smaller cushion matters. If savings drop to zero at closing, the first unexpected repair arrives without a plan. This is worth working into your budget before you start making offers, not after.
Q: Are inspection fees refundable if I decide not to buy the home? A: No. Inspection fees are paid directly to the inspector and are non-refundable regardless of what you decide after receiving the report. You are paying for the information. That information is what lets you make a clear decision about whether to move forward.
If you’re trying to understand the full picture of what you’ll need before making an offer, the Buyer Agreement Clarity Guide is a practical place to start. It covers how buyer representation works, what the process looks like, and the questions worth asking before anything is signed.
Download the Buyer Agreement Clarity Guide