Buying a home is exciting, but the closing process can feel overwhelming—especially if it’s your first time. In Dearborn, MI, closing is the final step before you officially become a homeowner. This stage brings together the buyer, seller, and professionals to finalize the sale and transfer ownership. Understanding what to expect can help you feel prepared and confident on closing day.
Below, we’ll walk through what happens before, during, and after closing in Dearborn, MI, so there are no surprises.
1. What “Closing” Really Means
Closing—also known as settlement—is the day when ownership of the property officially changes hands. For buyers, it’s when you sign the mortgage and title paperwork, pay any required funds, and receive the keys to your new home. For sellers, it’s when they transfer the deed and receive their proceeds.
In Dearborn, MI, closings are typically coordinated by a title company, attorney, or escrow agent, depending on the arrangements made in your purchase agreement.
2. Preparing for Closing
The days and weeks leading up to closing are just as important as closing day itself. Here’s what usually happens before the big day:
- Loan Approval & Final Underwriting
Your lender will review your credit, income, assets, and the property appraisal. They’ll issue a “clear to close” once everything checks out. - Title Search & Insurance
A title company will verify that the property’s title is free from liens or ownership disputes. You’ll also need to secure title insurance to protect against any future claims. - Homeowner’s Insurance
Proof of homeowner’s insurance is typically required before closing. Ensure your coverage begins on your closing date. - Final Closing Disclosure
At least three business days before closing, you’ll receive a Closing Disclosure (CD) from your lender. This document details your final loan terms, monthly payments, interest rate, and closing costs.
3. The Final Walk-Through
In Dearborn, buyers usually schedule a final walk-through of the property within 24 hours before closing. This is your chance to ensure:
- Repairs requested after inspection are complete.
- Appliances and systems are in working order.
- The property is in the condition agreed upon in the contract.
If you notice any issues, please notify your agent immediately so they can be addressed before you sign.
4. What to Bring to Closing
On closing day in Dearborn, you’ll need to bring:
- A government-issued photo ID (driver’s license or passport).
- A cashier’s check or proof of wire transfer for your closing costs and down payment.
- Your Closing Disclosure for reference.
- Any additional documents requested by your lender or title company.
5. Who Will Be There
Depending on the arrangement, your closing might take place at a title company’s office, a real estate attorney’s office, or sometimes virtually. Common attendees include:
- The buyer(s) and their real estate agent.
- The seller(s) and their agent.
- A closing agent or escrow officer.
- Sometimes, a representative from the lender.
In Dearborn, it’s common for both buyer and seller to attend the same closing, but some transactions are handled separately for convenience.
6. Reviewing and Signing Documents
Expect to sign a substantial stack of documents. While your agent or attorney will walk you through them, some of the key documents include:
- Promissory Note – Your written promise to repay the mortgage.
- Mortgage or Deed of Trust – Gives the lender a claim against your property if you default.
- Closing Disclosure – Confirms your final loan terms and costs.
- Deed – Transfers property ownership from seller to buyer.
- Affidavits & Declarations – Legal statements confirming facts about the property or your purchase.
Take your time and ask questions before signing—this is a big commitment.
7. Paying Closing Costs
Closing costs in Dearborn typically range from 2% to 5% of the home’s purchase price. These may include:
- Lender fees (origination, underwriting, application)
- Appraisal fee
- Title search and title insurance
- Recording fees
- Prepaid property taxes and homeowner’s insurance
- Escrow account setup costs
You’ll receive your final payment instructions before closing. Most title companies in Michigan require either a wire transfer or a cashier’s check—personal checks are usually not accepted.
8. Recording & Transfer of Ownership
After you’ve signed and paid, the closing agent will:
- Record the new deed with Wayne County.
- Disburse funds to the seller, real estate agents, and any other parties to whom money is owed.
- Provide you with copies of all signed documents.
Once the deed is recorded, you are officially the legal owner of the property.
9. Receiving the Keys
For most Dearborn closings, you’ll get your keys right after the paperwork is complete—unless the contract specifies a delayed possession date. This is common if the seller needs a few days to vacate the premises.
10. Post-Closing Steps
Even after closing day, there are a few things to check off your list:
- Store Your Documents Safely
Keep your closing packet in a secure location, whether physically or digitally. - Change the Locks
Even if you trust the seller, it’s a good idea to replace locks or rekey them for added security. - Set Up Utilities
Ensure utilities are in your name from the date of your move-in. - Homestead Exemption
In Michigan, you can file a Principal Residence Exemption (PRE) form with the city to potentially lower your property taxes.
11. Dearborn-Specific Considerations
Dearborn has a few local quirks worth noting:
- City Inspections
Many property sales in Dearborn require a city inspection prior to closing. Any repairs mandated by the city must be completed or escrowed before the sale. - Transfer Tax
Michigan charges both a state and county transfer tax, often paid by the seller, but this can be negotiated in the purchase agreement. - Utilities & Water Bills
Dearborn requires final water readings before closing. Any unpaid water bills typically must be settled before the deed is transferred.
12. Tips for a Smooth Closing in Dearborn
- Review the Closing Disclosure early to avoid last-minute surprises.
- Schedule your final walk-through carefully to ensure you have sufficient time to address any issues.
- Confirm your payment method with the title company to avoid delays.
- Communicate openly with your lender, agent, and closing agent to ensure a smooth closing process.
Final Thoughts
Closing on a home in Dearborn, MI, is a big milestone. While it involves a lot of paperwork, coordination, and financial preparation, knowing what to expect makes the process much less stressful. By preparing ahead, asking questions, and working closely with your real estate and lending professionals, you’ll be ready to walk out of the closing room with the keys to your new home—and a smile on your face.
Learn more about our comprehensive title insurance services here.
Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!
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