Are you planning to buy a home in Leelanau County and wondering how much to budget beyond the down payment? You are not alone. Closing costs can feel confusing, especially with Michigan taxes, rural inspections, and escrow details in the mix. In this guide, you will learn what typical buyer closing costs look like in Leelanau County, which fees are common in Michigan, what to expect with septic and well inspections, and how to keep your out-of-pocket expenses in check. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, and prepayments you pay to finalize your purchase. They are separate from your down payment. In many markets, buyers plan for about 2% to 5% of the purchase price to cover lender fees, title and recording, prepaid items, and inspections. Your exact number depends on your loan type, the property, and any seller credits you negotiate.
Buyer-paid items
You may not pay every fee below, but these are common in Leelanau County and across Michigan:
- Loan costs: origination or application fee, points (optional), underwriting and processing, credit report, and a rate-lock fee if used.
- Appraisal: often $400 to $800, with higher costs for unique or waterfront homes.
- Title and settlement: lender’s title insurance, title search, settlement or closing fee, recording fees, and sometimes a survey.
- Government charges: Michigan transfer taxes and county charges if negotiated to the buyer, plus recording fees with the Register of Deeds.
- Prepaid items and escrows: homeowner’s insurance, prepaid interest, and property tax escrow to start your impound account.
- Inspections: general home inspection, septic inspection and certification, well inspection and water testing, and pest inspection if required.
- Other: HOA transfer fees (if applicable), flood certification, attorney fees if you choose to hire one, and wire or courier fees.
Michigan fees and taxes
Michigan charges real-estate transfer taxes with a state portion and a county portion. Historically, the state rate has been $3.75 per $500 of consideration and the county rate has been $0.55 per $500, for a combined $4.30 per $500. These are often paid by the seller in many Michigan transactions, but it is negotiable. Always confirm current rates with the Michigan Department of Treasury and the Leelanau County Register of Deeds before you close.
Recording fees
Recording the deed and any mortgage is required and handled by the Leelanau County Register of Deeds. Fees vary by document type and are typically modest fixed amounts per document. Your title company or closing attorney will include these in your final numbers.
Tax proration and escrows
Property taxes in Michigan are billed locally, often twice per year. At closing, taxes are prorated based on the closing date. If the seller prepaid taxes, you receive a credit for the portion after closing. If your lender requires an escrow account, you will fund a starting balance for future tax and insurance payments.
Rural and waterfront costs
Leelanau County has many rural and waterfront properties. That can add a few location-specific items to your budget:
- Septic system: inspection, certification, or repairs may be required by lenders or local rules. Buyers typically pay for inspections unless negotiated otherwise.
- Private well: flow and water quality testing is common, including coliform, nitrate, and sometimes lead. Remediation can add costs if issues are found.
- Shoreline and docks: waterfront homes may require extra surveys or permits related to shoreline setbacks or riparian rights. Your title company or attorney can advise on what is typical for the parcel.
Sample cost ranges
These examples help you plan. Your Loan Estimate and Closing Disclosure will provide exact figures for your purchase.
- $300,000 home: about $6,000 to $15,000 in closing costs
- $500,000 home: about $10,000 to $25,000
- $800,000 home: about $16,000 to $40,000
Components often break down like this:
- Appraisal: $400 to $850, higher for unique or waterfront homes
- Lender fees and points: about 0.5% to 1.5% of the loan amount
- Title, settlement, and recording: roughly 0.5% to 1.0% of the purchase price, depending on provider and policy choices
- Prepaids and escrows: several hundred to several thousand, depending on closing date and tax cycles
- Inspections: often $500 to $2,000 for home, septic, well, and any specialty inspections
Timeline and disclosures
Federal rules protect you by requiring clear cost estimates early and final numbers before closing.
- Within three business days of your completed mortgage application, the lender must provide a Loan Estimate. This outlines your projected closing costs.
- Three business days before closing, you receive a Closing Disclosure with final costs. Review it carefully and compare it to your Loan Estimate. Ask your lender or closer about any significant changes.
Who pays what
Many items are negotiable. In Michigan, sellers often pay the owner’s title insurance policy and transfer taxes as a local custom, but practices vary by deal and by county. Clarify who pays which fees in your purchase agreement. Your agent and the title company can explain current norms in Leelanau County.
Reduce and manage costs
You can take steps to lower or better manage your closing costs.
- Shop lenders and compare rates, origination fees, and credits.
- Negotiate seller concessions to cover some buyer closing costs, subject to your loan’s limits.
- Ask about lender credits in exchange for a slightly higher rate and weigh the long-term math.
- Explore mortgage programs with reduced fees or down-payment assistance if you qualify.
- Bundle services with reputable local title and settlement providers and request a clear fee schedule.
Local action checklist
These quick checks help you plan with confidence in Leelanau County.
- Contact the Leelanau County Register of Deeds for current recording fees and transfer tax procedures.
- Confirm property tax billing cycles and last-paid amounts with the Leelanau County Treasurer or your township assessor for accurate proration.
- Ask the Leelanau County Health Department about septic and well inspection or certification expectations and any shoreline or environmental permits.
- Talk with local title companies or closing attorneys about owner’s title insurance custom, transfer tax practices, and typical closing workflows.
Closing-day security
Plan how you will deliver funds. Certified funds or a wire are common. Always verify wire instructions by calling your title company using a known, trusted phone number. Real estate wire fraud is a serious risk, and a quick verification call protects your funds.
Ready to plan your purchase?
If you want clear numbers tailored to your budget and property type, we are here to help. Our team pairs local expertise with a calm, organized process so you close with confidence in Leelanau County. Have questions about transfer taxes, septic or well inspections, or how to structure seller credits? Reach out to Unknown Company to Schedule a Consultation.
FAQs
How much are buyer closing costs in Leelanau County?
- Plan for about 2% to 5% of the purchase price, depending on your loan, timing, property type, and any seller credits.
What Michigan transfer taxes should I expect as a buyer?
- Michigan charges state and county transfer taxes based on the sale price. Sellers often pay them by local custom, but it is negotiable and should be confirmed in your contract.
Are septic and well inspections required in Leelanau County?
- They are not universally required by law, but lenders, municipalities, or buyers often require them. Expect costs for inspections, testing, and any repairs needed for loan approval.
What is included in my escrow set-up at closing?
- You may prepay homeowner’s insurance, a portion of property taxes, and prepaid interest. Your lender calculates the exact amounts based on your closing date and billing cycles.
When will I see my exact closing number?
- Your exact cash-to-close appears on the Closing Disclosure, which you receive at least three business days before closing. Compare it with your Loan Estimate and ask questions about any changes.
