Buying or selling a home in Dearborn, Michigan, is an exciting milestone, but before the keys change hands, there’s one final step—closing. Also known as “settlement,” closing is the formal transfer of ownership from the seller to the buyer. This day can be both exciting and overwhelming, especially if it’s your first time going through the process.
If you’re preparing for closing in Dearborn, MI, this guide will walk you through what to expect, who will be there, the documents you’ll sign, and how to avoid last-minute surprises.
1. The Days Leading Up to Closing
Before closing day arrives, several things must be finalized:
- Final Loan Approval – Your lender will complete an underwriting review and issue a “clear to close,” confirming all loan conditions are met.
- Title Search & Insurance – The title company or closing attorney will check public records to ensure the property has no liens, disputes, or ownership issues. They’ll also prepare your title insurance policy to protect you against future claims.
- Closing Disclosure Review – At least three business days before closing, your lender must provide you with a Closing Disclosure that details your final loan terms, including the interest rate, monthly payment, and itemized closing costs. Review this carefully and report any errors immediately.
2. The Final Walkthrough
Typically, the buyer has the right to conduct a final walkthrough 24 hours prior to closing. This is your last chance to:
- Verify repairs agreed upon in the contract are complete.
- Check that the property is in the same condition as when you made the offer.
- Ensure all fixtures and appliances included in the sale are still present.
- Confirm utilities are operational.
While the walkthrough isn’t an official inspection, it serves as a crucial safeguard before signing the paperwork.
3. Who Attends the Closing in Dearborn, MI
Depending on your lender, title company, and state regulations, the closing may take place at a title office, attorney’s office, or even remotely through eClosing technology.
People who may be present include:
- Buyer and Buyer’s Agent
- Seller and Seller’s Agent
- Title Company Representative (often the closing agent)
- Loan Officer or Mortgage Representative
- Attorney (optional but recommended in complex transactions)
In Dearborn, it’s common for buyers and sellers to close at the same table, but in some cases, they may sign separately.
4. Documents You’ll Sign
Be prepared for a lot of paperwork—especially if you’re financing your purchase. Key documents may include:
For Buyers:
- Promissory Note – Your written promise to repay the mortgage loan.
- Mortgage/Deed of Trust – Secures the loan with the property as collateral.
- Closing Disclosure – Confirms all loan terms and costs.
- Title Documents – Ensure Clear Ownership Transfer.
- Affidavits and Declarations – Verify legal and financial obligations.
For Sellers:
- Deed – Transfers ownership to the buyer.
- Bill of Sale – Transfers any personal property included in the sale.
- Affidavit of Title – Confirms you are the rightful owner and the home has no new liens.
- Closing Statement – Details how funds will be distributed.
5. Closing Costs in Dearborn, MI
Closing costs in Michigan generally range from 2% to 5% of the purchase price, depending on the transaction.
Buyers may pay for:
- Loan origination fees
- Appraisal fees
- Title insurance
- Recording fees
- Prepaid property taxes and homeowner’s insurance
Sellers may pay for:
- Real estate agent commissions (typically 5–6% of the sale price)
- Transfer taxes
- Title clearing fees
- Any outstanding property taxes or HOA dues
In some cases, buyers and sellers can negotiate who covers certain costs.
6. How Funds Are Handled
In Dearborn, closings are usually handled by a title company. On closing day:
- The buyer wires the required funds (down payment plus closing costs) to the title company prior to the meeting.
- The lender wires the loan funds.
- The title company disburses money to the seller, pays off any existing mortgages, and handles agent commissions.
Always verify wire instructions directly with your title company to avoid wire fraud.
7. Recording and Key Exchange
Once all documents are signed and funds are distributed, the title company will record the deed with the Wayne County Register of Deeds. This makes the transaction official in public records.
- For buyers – You’ll receive your keys, garage remotes, and any other property access items.
- For sellers, you will receive your net proceeds, typically via wire transfer or check.
8. Tips to Avoid Closing Delays in Dearborn
Closing delays can be frustrating and costly. To keep things on track:
- Respond quickly to lender and title company requests.
- Bring a valid government-issued ID.
- Avoid making large financial changes before closing (e.g., changing jobs, buying a car, or taking out new loans).
- Double-check the property’s condition before signing.
- Confirm the exact amount you need to wire and the deadline by which it must be received.
9. Special Considerations for Dearborn Homebuyers and Sellers
- Local Transfer Taxes – Michigan charges a state transfer tax of $7.50 per $1,000 of home value and a county transfer tax of $1.10 per $1,000 of home value. These are often paid by the seller, but it can be negotiated.
- Wayne County Recording Times – Recording can sometimes take an extra day or two. If you’re moving in right away, plan accordingly.
- Seasonal Timing – Dearborn experiences an active spring and summer real estate market, which can lead to increased activity for title companies. Schedule early to secure your preferred closing date.
10. The Bottom Line
Closing day in Dearborn, MI, marks the final step in the home purchase or sale process. While it involves a lot of paperwork and financial transactions, understanding the process helps reduce stress and avoid surprises.
With proper preparation, communication with your real estate agent and lender, and attention to detail, you can walk into closing confident—and walk out with keys in hand or proceeds in the bank.
Whether you’re buying your first home near Ford Woods Park, selling a historic property in the Aviation Subdivision, or investing in a rental near the University of Michigan–Dearborn, knowing what to expect at closing ensures a smooth and successful transaction.
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