hhomesmichigan.com
The Michigan
Home Buying Process
A simple, step-by-step walkthrough designed for first-time and repeat buyers in Grand Rapids & West Michigan.
Get Pre-Approved for a Mortgage
Before you fall in love with a home, you need to know what you can actually afford — and that starts with a mortgage pre-approval. This is the foundation of your entire home search and the first thing sellers will ask about.
Pre-qualification is a quick, informal estimate based on self-reported info. Pre-approval means a lender has actually verified your income, assets, and credit — and it carries real weight with sellers. Always go for pre-approval.
- Last 2 years of tax returns (W-2s or 1099s)
- Recent pay stubs (last 30 days)
- Last 2–3 months of bank statements
- Government-issued photo ID
- List of current debts (auto loans, student loans, credit cards)
- Landlord contact info (if currently renting)
- Credit score — aim for 620+ (FHA: 580+)
- Debt-to-income ratio — ideally below 43%
- Employment history — 2+ years preferred
- Down payment funds — where they came from
- Cash reserves — savings after closing
| Loan Type | Min. Down Payment | Best For |
|---|---|---|
| Conventional | 3–20% | Strong credit, stable income |
| FHA | 3.5% (with 580+ credit) | First-time buyers, lower credit |
| VA | 0% | Veterans & active military |
| USDA | 0% | Rural areas of Michigan |
| MSHDA | Varies + DPA up to $10,000 | Michigan first-time buyers |
The Michigan State Housing Development Authority (MSHDA) offers down payment assistance of up to $10,000 for eligible first-time buyers anywhere in Michigan, and repeat buyers in select zip codes. Ask your lender specifically about MSHDA programs — many buyers don't even know they qualify!
- Shop 2–3 lenders to compare rates and fees — it's worth it! Multiple mortgage inquiries within a 45-day window count as just one credit pull.
- Don't open new credit cards or make large purchases while you're in the process. It can hurt your score and debt-to-income ratio.
- Don't change jobs right before or during the home buying process. Lenders love stability.
- Keep your down payment funds in the same accounts for at least 60–90 days. Large unusual deposits can trigger underwriting questions.
- Get your pre-approval letter before attending open houses — it gives you the confidence to make an offer on the spot.
- What is my estimated monthly payment, including taxes, insurance, and PMI?
- Do I qualify for any down payment assistance programs (like MSHDA)?
- What is the interest rate, and can I lock it in?
- What are your estimated closing costs?
- How long will underwriting take once I have an accepted offer?
The median home price in Grand Rapids has grown significantly over the past five years, making pre-approval more important than ever. In competitive situations, sellers may not even consider an offer without a strong, verified pre-approval letter from a reputable lender.
Choose Your Real Estate Agent
Your buyer's agent is your advocate, your guide, and your negotiator — all in one. Best of all? Their services typically cost you nothing, as the seller's commission covers the buyer's agent fee in most transactions.
Meet Devon Higgins at H. Homes
Devon is a Grand Rapids real estate broker who brings a family-focused, no-pressure approach to every transaction. With deep roots in West Michigan and a commitment to honest guidance, H. Homes is the brokerage that puts YOUR goals first.
Work With Devon →- Access to all MLS listings — including homes not on Zillow yet
- Guidance on fair market pricing so you don't overpay
- Skilled negotiation on price, terms, and repairs
- Coordination with lenders, inspectors, title companies, and attorneys
- Protection of your interests through every step of the transaction
- Local expertise on neighborhoods, schools, and resale value
- How many buyers have you helped in the past 12 months?
- How familiar are you with the neighborhoods I'm interested in?
- How quickly do you typically respond to your clients?
- What happens if I want to see a house on short notice?
- How do you handle multiple offer situations?
- Can you refer me to trusted lenders and inspectors?
H. Homes is a family-focused brokerage in Grand Rapids that believes buying a home should be exciting, not overwhelming. Devon takes the time to truly understand your goals — and won't push you into a home that isn't right for you. That's the H. Homes promise.
In Michigan, your agent may ask you to sign a Buyer Agency Agreement. This formalizes the relationship and ensures they're legally representing YOU (not the seller). It's a good thing — it means your agent owes you undivided loyalty and must always act in your best interest.
As of 2024, new NAR (National Association of Realtors) guidelines mean buyer agent compensation is now negotiated separately. Your agent should clearly explain how they are compensated before you begin touring homes — this transparency protects you.
Start Your Home Search
The home search is where it gets exciting! But going in with a clear picture of your needs — and a great agent by your side — is what separates a fun experience from a frustrating one.
Must-Haves (non-negotiables):
- Number of bedrooms and bathrooms
- School district or proximity to work
- Minimum square footage
- Garage or parking requirements
Nice-to-Haves (bonuses):
- Finished basement or bonus room
- Large backyard or specific outdoor features
- Updated kitchen or bathroom finishes
- Main floor laundry
- Grand Rapids — vibrant city living, diverse neighborhoods
- Ada & Cascade — top-rated schools, suburban feel
- Kentwood & Wyoming — affordability & convenience
- Forest Hills — award-winning schools, family-friendly
- East Grand Rapids — walkable, prestigious, lakefront
- Rockford & Lowell — small-town charm, great commute
- Holland & Zeeland — lakeside living, strong community
Beyond the staged decor, pay attention to: natural light, traffic noise, water pressure, age of the roof and HVAC system, signs of water staining on ceilings, the condition of the basement, and the general feel of the neighborhood at that time of day.
- Your agent's MLS portal — most accurate, fastest updates
- Zillow & Realtor.com — good for browsing but can lag 24–48 hrs behind MLS
- Request "coming soon" alerts from your agent for off-market homes
- Drive target neighborhoods on weekends to spot FSBO signs
- Be ready to move fast — popular homes in Grand Rapids can receive multiple offers within hours
- Have your pre-approval letter updated and ready
- Know your absolute maximum price before you fall in love
- Trust your agent's guidance — they've seen this before
Don't tour more homes than you need to. After 8–10 showings, "decision fatigue" is real — every home starts to blend together. Be specific with your criteria and let your agent filter out the noise so you only see homes that truly have potential.
Make an Offer
You found "the one." Now it's time to act! Your agent will help you craft a compelling, strategic offer that protects your interests while being competitive enough to win.
- Purchase price — the amount you're offering
- Earnest money deposit — shows you're serious (see below)
- Contingencies — inspection, financing, appraisal
- Closing date — typically 30–60 days out in Michigan
- Personal property requests — appliances, fixtures, etc.
- Seller concessions — closing cost help if applicable
- Pre-approval letter — included with the offer
Earnest money is a "good faith" deposit that goes into escrow after your offer is accepted. In Michigan, it's typically 1–3% of the purchase price.
This money is applied to your down payment or closing costs at closing. If the seller accepts and you back out without a valid contingency reason, you may lose it — so only waive contingencies with extreme caution.
| Contingency | What It Does | Timing (Michigan) |
|---|---|---|
| Inspection | Lets you hire an inspector and negotiate issues found | 7–10 business days |
| Financing | Protects you if your loan is ultimately not approved | Until closing or set date |
| Appraisal | Protects you if the home appraises below purchase price | Within financing timeline |
In a competitive market, your agent may suggest an escalation clause (automatically outbid other offers up to a cap) or a personal letter to the sellers. They'll advise on what contingencies are reasonable to keep vs. release — never waive the inspection contingency without serious thought.
Congratulations — you're "under contract!" Your agent will send the signed Purchase Agreement to all parties. The clock starts on your contingency periods, your lender kicks into gear, and you'll schedule your home inspection right away.
The Home Inspection
The home inspection is one of the most important steps in the process. A licensed inspector gives you an unbiased, detailed look at the condition of your potential home — protecting you from costly surprises after closing.
Attend your home inspection! A great inspector will walk you through the entire home, explain what they're finding in real time, and teach you important things about maintaining the home. Budget about 2–3 hours and bring a notepad.
- Roof condition, age, and flashing
- Foundation, structure, and crawl space
- Electrical system (panel, wiring, outlets)
- Plumbing (water pressure, drainage, water heater)
- HVAC systems (furnace, A/C, ductwork)
- Insulation and ventilation
- Windows, doors, and exterior siding
- Garage, driveway, and grading
- Radon — Michigan has elevated radon levels in many areas. Always test!
- Older knob-and-tube wiring — common in older Grand Rapids homes
- Basement moisture — common in Michigan due to freeze/thaw cycles
- Sewer scope — important for homes 30+ years old in the city
- Well & septic — if applicable, get separate inspections
| Option | What It Means |
|---|---|
| Accept As-Is | Proceed without requesting repairs or credits |
| Request Repairs | Ask seller to fix specific items before closing |
| Request a Credit | Seller reduces price or gives cash credit; you handle repairs after closing |
| Cancel Contract | Walk away with earnest money refunded (within contingency period) |
A standard home inspection in the Grand Rapids area typically costs $350–$500 for a single-family home, depending on size. Add $100–$150 for radon testing, and $150–$200 for a sewer scope. These are costs paid by you, the buyer — and they're absolutely worth every penny.
Appraisal & Final Loan Approval
While you're handling inspections, your lender is busy verifying everything behind the scenes. The appraisal is a major milestone — and getting your "Clear to Close" means the finish line is in sight!
Your lender orders an independent appraisal to confirm the home's market value. The appraiser inspects the property and compares it to recent nearby sales. This protects the lender from over-lending.
Cost: $500–$750 in Michigan, typically paid upfront by the buyer.
Timeline: 1–2 weeks for the report.
- Renegotiate the price with the seller to match appraised value
- Make up the difference in cash (appraisal gap coverage)
- Challenge the appraisal with comparable sales your agent provides
- Cancel the contract if you have an appraisal contingency — and get your earnest money back
"Clear to Close" is the golden phrase you want to hear from your lender. It means underwriting has approved your loan and all conditions have been met. Once you receive your CTC, your closing date is officially on! Expect it 3–7 days before your closing date.
Your lender requires proof of homeowner's insurance before closing. Shop for insurance early — get at least 3 quotes. You'll need to provide your lender with the policy information (binder letter) before your closing date. Ask H. Homes for a referral to trusted local insurance providers in West Michigan.
- Do NOT open new lines of credit or apply for new credit cards
- Do NOT make large deposits or transfers without consulting your lender
- Do NOT change jobs or become self-employed
- Do NOT make large purchases (car, furniture, appliances) before closing
- Do NOT co-sign on any loans for anyone else
Even after you receive a "Clear to Close," lenders sometimes do a final credit check right before closing. This is why it's so important to avoid any financial changes during the entire home purchase process — not just at the beginning!
The Final Walkthrough
Just before closing — typically 24 to 48 hours before — you'll do one last visit to the home. This is your chance to confirm everything is exactly as agreed before you sign on the dotted line.
- All agreed-upon repairs have been completed
- All items included in the sale are still present (appliances, fixtures)
- No new damage has occurred since your inspection
- All personal property belonging to the seller has been removed
- Utilities are still on (run water, test outlets, check A/C or heat)
- Garbage has been removed from the property
- Garage door openers, mailbox keys, and access codes are available
Don't panic — but do communicate with your agent immediately. Depending on the issue, you have a few options:
- Request the seller fix it before closing
- Negotiate a closing credit to cover the repair cost
- In rare cases, delay closing until resolved
- In serious situations, your agent can advise on cancellation rights
Document the home's condition during the final walkthrough with photos and a video walkthrough on your phone. Note the condition of each room, appliances, and any agreed-upon repairs. This protects you in case any disputes arise after closing.
After the final walkthrough, get a good night's sleep! Tomorrow you'll officially become a Michigan homeowner. Make sure you know what to bring, where to go, and approximately how long the signing will take. Your agent will have everything coordinated.
Closing Day!
This is the moment you've been working toward. Closing day is when ownership officially transfers to you — you'll sign the final documents, funds will be exchanged, and you'll get your keys. Let's do this!
- Valid government-issued photo ID (driver's license or passport)
- Cashier's check or proof of wire transfer for closing costs & down payment
- Checkbook for any last-minute small adjustments
- Your homeowner's insurance binder (if not already submitted)
- Any remaining documents requested by your lender or title company
- You'll meet at a title company or real estate attorney's office
- Sign the promissory note (your promise to repay the loan)
- Sign the mortgage/deed of trust
- Sign the Closing Disclosure confirming all fees
- Title company records the deed with Kent County
- Funds are disbursed — and you get the keys!
Michigan is an attorney state for real estate closings, which means a licensed real estate attorney or title company will facilitate the closing. You do NOT need to hire your own attorney, as this is handled by the title/closing company — but you always have the right to have legal counsel if you choose.
Michigan buyers typically pay 2–4% of the purchase price in closing costs. This includes lender fees, title insurance, attorney fees, prepaid taxes and insurance, and recording fees. You'll receive a Closing Disclosure at least 3 business days before closing so there are no surprises.
Ready to Start Your Journey?
Devon Higgins at H. Homes is ready to guide you through every step of buying a home in Grand Rapids and West Michigan. Family-focused, no-pressure, and deeply knowledgeable about the local market.
Connect With H. Homes →Closing is complete — the home is YOURS! Congratulations on this incredible milestone. The H. Homes team celebrates with every client at this moment and remains a resource long after closing. Welcome home!
You've Completed the Walkthrough!
You now have a solid understanding of the Michigan home buying process from start to finish. When you're ready to take the next step, H. Homes is here for you.