This page is designed to help answer frequently asked questions.

You will receive Title Insurance on the home you purchase. A search is conducted to make sure that the seller is actually the owner. Any liens or potential liens, such as unpaid mortgages, outstanding taxes, even an unpaid water bill will be discovered. At or before the closing, any of the above discrepancies will have to be corrected so that you start with a clean slate. The Title Insurance then protects you aginst any unforeseen title problems that might arise after the closing.

An appraisal is always required to determine the value of the property, and must be performed by a State Licensed residential appraiser. A comparison is done with other homes that have sold in the past few months that represent the same in size, location, style and construction type. This value is then used for the funder to determine if they are making a wise investment in your home. If so, this phase of the home purchase is approved.
An appraisal is not a home inspection. The appraisal may site obvious defects but only sites those that may affect the final value. (See home inspections)  An single family residential home appraisal will cost $300.00 to $400.00.  Rental properties and Multi-family properties have an additional section reguarding lease values and the cost can be a couple hundred more. Commercial appraisals can cost into the thousands.

Should you choose to have a home inspection performed it will be included as a request and a contingency in the purchase agreement. A home inspector of your choice will meet you at your prospective property for a complete inspection inside and out, from the foundation to the roof. The purpose of the inspection is not to determine the value of the property, but to look for hidden defects and/or make recommendations for possible improvements and required maintenance. After the seller accepts your offer, the home inspection will need to be completed in five days. It is recommended that all buyers meet the inspector at the home and fully participate in the inspection process. Most inspections will take aproximately 2 1/2 hours and a written report should be completed for you immediately upon completion. The average price for this inspection ranges between $175.00 to $300.00 and is payable at time of inspection.
NOTE: Home inspectors are not licensed through the State of Michigan, therefore, it is recommended that you choose one that belongs to a national home inspection organization. Home inspectors do not warrant the findings or lack of findings in their report.
Be sure to let your sales associate know prior to writing the purchase offer if you wish to include a home inspection contingency.
Click on this link for a list of Home Inspectors.  Go to Home Inspection page

You are required to have a paid, 12 month home insurance policy at the time of closing. The amount of the insurance will vary based on the price and construction type of your home. This insurance is to protect you and the funder from damage to your property, personal injury to a guest on your property, burglary and theft. It will need to be renewed each year thereafter.

Generally, a survey is performed to verify property boundaries and their relationship to structures located on or adjoining the property.
Surveys ard not always required by a Mortgage Co. to close a loan. Its generally because the property is located in an established subdivision. A mortgage survey is not 100% accurate and should not be used if you are going to put a fence exactly on your property line. It can be off several inches.  On standard lots the cost will range between $110.00 and $150.00 How ever on larger properties that have not been broken down into lot the cost can be several hundred dollars.  The survey is generally paid at the closing.

MCD Real Estate Division, Inc.