How much cash beyond your down payment will you need to close on a Clarkston home? It’s one of the first questions buyers ask, and it deserves a clear, local answer. You want to plan with confidence, avoid surprises, and know which costs you can control or negotiate. In this guide, you’ll learn what buyer closing costs include, what’s typical in the Village of Clarkston and Oakland County, how to estimate your total, and smart ways to reduce what you bring to the closing table. Let’s dive in.
What closing costs include
Closing costs are the collection of lender charges, third‑party fees, title and recording costs, plus prepaids and escrow deposits you pay at or before closing in addition to your down payment. Industry guidance shows most buyers pay roughly 2% to 5% of the purchase price in closing costs. The exact amount depends on your loan type, price point, timing, and negotiated credits.
In Michigan, who pays which line items is set by your purchase agreement and loan rules. Many items are negotiable. Your exact figures will appear on your Loan Estimate early in the process and your Closing Disclosure at least three business days before closing.
What buyers pay in Clarkston
Lender fees
- Origination fee: often 0.25% to 1.0% of the loan amount or a flat fee.
- Underwriting and processing: usually a few hundred dollars combined.
- Credit report: typically a small charge.
- Rate lock or extension: may apply depending on timing.
- Upfront mortgage insurance: depends on loan program and down payment.
Third‑party services
- Appraisal: commonly about $400 to $800 for a single‑family home, depending on complexity.
- Home inspections: often $300 to $600 for a general inspection; add-ons like radon, well, or septic are extra.
- Survey: sometimes required; pricing varies.
- Flood certification or specialized inspections: if applicable, expect additional fixed costs.
Title, escrow, and recording
- Title search and exam: verifies clear ownership.
- Title insurance: a lender’s policy is required when you finance. An owner’s policy is optional but widely recommended. Pricing is tied to purchase price and insurer rate tables.
- Settlement or closing fee: typically a few hundred dollars.
- Recording fees and transfer taxes: county or state charges to record the deed and mortgage. Check Oakland County for current recording fees and any state transfer taxes.
Prepaids and escrow deposits
- Prepaid interest: interest from your closing date to the start of your first payment. Timing can shift this by several hundred dollars.
- Homeowners insurance: often the first year paid at closing.
- Initial escrow for taxes and insurance: lenders typically collect 2 to 6 months of tax and insurance to seed your escrow account.
- Property tax proration: seller and buyer split taxes based on the closing date. Depending on timing, you may owe a prorated share at closing.
Other possible costs
- HOA or condo transfer fees and dues, if applicable.
- Local certifications for well, septic, or flood.
- Buyer’s agent commission is typically paid by the seller, but confirm your agreement.
How to estimate your costs
Use this quick framework to build a working estimate, then refine it with your lender and title company.
Start with a percentage range. Use 2% to 5% of the purchase price for fees and third‑party costs.
Add fixed items. Include appraisal, inspections, and any required survey.
Add prepaids and escrow. A simple placeholder is about 1% to 3% of the price, depending on taxes, insurance, and your closing date.
Compare to your Loan Estimate. Plug in the exact numbers once you have them for the most accurate cash‑to‑close.
Illustrative examples by price
These examples are for planning only. Your loan program, lender requirements, title quote, and timing will change the final numbers.
Example A — $300,000 purchase
- Fees and third‑party (2% to 5%): $6,000 to $15,000
- Fixed items (sample appraisal, inspection, title): about $1,800
- Prepaids and escrow (modeled at ~1.5%): $4,500
- Estimated total range: low about $12,300; high about $21,300
Example B — $450,000 purchase
- Fees and third‑party (2% to 5%): $9,000 to $22,500
- Fixed items: about $1,800
- Prepaids and escrow (~1.5%): $6,750
- Estimated total range: low about $17,550; high about $31,050
Example C — $600,000 purchase
- Fees and third‑party (2% to 5%): $12,000 to $30,000
- Fixed items: about $1,800
- Prepaids and escrow (~1.5%): $9,000
- Estimated total range: low about $22,800; high about $40,800
Ways to lower cash to close
- Ask for seller concessions. Sellers can pay some of your closing costs up to program limits. Feasibility depends on market conditions and your offer strategy.
- Consider a lender credit. You can often trade a slightly higher rate for a credit that reduces upfront costs. Compare the long‑term math.
- Finance allowable costs. Some fees can be rolled into your loan amount depending on program rules.
- Negotiate repair credits. After inspections, consider credits in lieu of out‑of‑pocket repairs before closing.
- Shop providers. Compare Loan Estimates from multiple lenders and request title quotes. Fees vary among reputable local companies.
Local notes for Oakland County buyers
- Property taxes and millage. Tax rates vary by municipality. Your initial escrow deposit depends on the property’s annual tax amount and the billing cycle. Confirm with Oakland County before you finalize your estimate.
- Recording fees. The county sets these charges to record your deed and mortgage. Your title company will include the exact fees in your quote.
- HOA or condo fees. Some Clarkston area communities charge transfer or estoppel fees at closing. Ask for amounts early.
- Timing matters. Closing near month‑end can change prepaid interest. Small date shifts can lower or raise cash to close.
Step‑by‑step next steps
- Get preapproved and request a Loan Estimate so you have an itemized cost preview.
- Ask your lender to confirm origination, processing, appraisal, credit report, and required escrow months.
- Request a title and settlement quote, including an owner’s title policy option and the closing fee.
- Discuss seller concessions with your agent and confirm your loan program’s limits.
- Budget for inspections and the appraisal right after your offer is accepted.
- Verify property tax amounts and due dates through Oakland County so escrow and proration estimates are accurate.
- Review your Closing Disclosure when it arrives at least three business days before closing. Compare it line by line to your Loan Estimate and ask about differences.
- Confirm how to deliver funds for closing. Title companies often require a wire or cashier’s check.
Ready to plan your budget?
Closing costs in Clarkston are manageable when you understand the moving parts, build a realistic estimate early, and use smart negotiation. With the right plan, you can protect your cash and move forward with confidence. If you want a personalized estimate based on your loan type, price point, and timing, reach out to our local team for guidance and trusted title and lender introductions.
Have questions or want help building your numbers for a Clarkston home? Connect with Unknown Company for a friendly, local walkthrough and a clear plan to closing.
FAQs
What are typical buyer closing costs in Clarkston?
- Most buyers can expect roughly 2% to 5% of the purchase price in closing costs, excluding the down payment. Your Loan Estimate will show your specific numbers.
Which closing costs can a seller pay in Oakland County?
- Sellers can contribute to buyer closing costs within loan program limits. Your agent can advise what is common and competitive for your price point and offer.
Are title insurance costs required for Clarkston buyers?
- A lender’s title policy is required when you finance. An owner’s policy is optional but recommended to protect your equity. Ask your title company for both quotes.
How much should I budget for inspections and appraisal?
- A general inspection often runs about $300 to $600, and an appraisal is commonly $400 to $800. Specialized inspections are extra.
Why do prepaids and escrow deposits vary so much?
- They depend on your closing date, the annual tax bill, insurance premium, and how many months your lender collects to seed the escrow account.
When will I see my final closing numbers?
- Your lender must deliver a Closing Disclosure at least three business days before closing. Review it carefully and compare it to your Loan Estimate.
