If you're buying a home in Mid-Michigan and your offer has been accepted, you've probably already been through a lot — house tours, negotiations, inspections, and now the appraisal. Getting past the appraisal milestone is a big deal, and it's natural to wonder: what happens next? As a Mid-Michigan REALTOR® who has guided countless transactions through to closing, I want to walk you through exactly what to expect from the appraisal through closing day — so you can feel confident and prepared for every step.

What the Appraisal Actually Tells You

First, a quick recap. The home appraisal is an independent assessment of the property's market value, ordered by your lender and conducted by a licensed appraiser. Its purpose is to confirm that the home is worth what you've agreed to pay. If the appraisal comes in at or above the purchase price, you're in good shape — the lender will proceed with financing. But what happens if it doesn't?

What Happens If the Appraisal Is Low

A low appraisal — where the appraiser's value comes in below the agreed-upon purchase price — is one of the most common speed bumps in a real estate transaction. It's stressful, but it's not a deal-breaker. Here are your main options:

Negotiate with the seller. The most straightforward solution is to ask the seller to reduce the purchase price to the appraised value. In many cases, sellers are willing to negotiate because they want the deal to close. If the home was priced aggressively or the market shifted during the transaction, this is a reasonable approach.
Split the difference. Sometimes buyer and seller agree to meet in the middle — the buyer brings a little extra cash to closing, and the seller reduces their price by a corresponding amount. This compromise keeps the deal moving while sharing the gap.
Challenge the appraisal. If you believe the appraiser overlooked comparable sales or made errors, your lender may allow a reconsideration of value. This requires providing additional comparable data and is not guaranteed to succeed, but it's worth pursuing when the numbers support it.
Walk away. If the gap is too large and neither party can bridge it, the financing contingency in your purchase agreement protects you. You can exit the transaction and recover your earnest money deposit. This is exactly why contingencies exist — they protect buyers when circumstances change.

In my experience, low appraisals are most common in rapidly appreciating markets or with unique properties that are difficult to compare. Mid-Michigan's varied housing stock — from historic homes in Clarkston to new construction in Grand Blanc — means appraisals sometimes require extra attention. Having an agent who understands local comparable sales makes a significant difference in these situations.

Title Work: Protecting Your Ownership

Once the appraisal is cleared, the title company takes center stage. Title work is one of the most important behind-the-scenes steps in the closing process, and it's essential to protecting your investment.

The title company conducts a thorough search of public records to verify that the seller has legal ownership of the property and that there are no outstanding liens, judgments, encumbrances, or legal issues that could affect your ownership. In Michigan, this search covers the county Register of Deeds records and typically includes a review of mortgages, tax liens, mechanic's liens, judgments, and easements.

If any issues surface — an unpaid contractor lien from a previous renovation, an unresolved tax obligation, or a boundary dispute — they need to be resolved before closing. This is where having an experienced agent and a responsive title company matters. I coordinate with the title company throughout this process to make sure issues are addressed promptly and don't delay your closing.

Once the title is cleared, you'll receive title insurance — both a lender's policy (required by your mortgage company) and an owner's policy (which I strongly recommend). Owner's title insurance protects you from financial loss due to title defects that weren't discovered during the search. It's a one-time cost at closing and provides peace of mind for as long as you own the home.

The Closing Disclosure

In Michigan, your lender is required to provide the closing disclosure (CD) at least three business days before closing. This document outlines every financial detail of the transaction — your loan terms, monthly payment, closing costs, and the funds you'll need to bring to the table.

This is not a document to skim. Compare it line by line against your original loan estimate. Look for any significant changes in fees, interest rate, or loan terms. If something looks different or unexpected, contact your lender immediately — and let your agent know too. Three business days may sound like a lot, but issues that arise late in the process need time to resolve. For a detailed breakdown of typical costs, see my guide to Michigan's transfer tax and closing cost breakdown.

The Final Walkthrough

The final walkthrough typically happens 24 to 48 hours before closing. This is your opportunity to verify that the property is in the condition agreed upon in the purchase agreement. For buyers, it's not a second home inspection — it's a confirmation that negotiated repairs have been completed, the seller has vacated, and no new damage has occurred.

Here's what I recommend doing during the walkthrough:

Run every faucet and flush every toilet to check for plumbing issues.
Test every light switch, outlet, and appliance.
Open and close every door and window.
Check that all negotiated repairs have been completed and look for repair receipts.
Walk the basement for any signs of new moisture or water intrusion.
Verify that all fixtures included in the sale are still in place.
Confirm the property is clean, empty, and ready for your move-in.

The walkthrough takes about 30 minutes, but it can prevent expensive surprises after you've already signed. I've caught missing appliances, incomplete repairs, and new damage during walkthroughs — issues that were resolved before closing because we caught them in time.

What to Bring to Closing Day

Preparation makes all the difference on closing day. Here's your checklist:

Government-issued photo ID — Driver's license or passport for both buyers.
Cashier's check or wire transfer confirmation — For your closing funds. Verify the exact amount with your title company a few days before closing. Never trust emailed wire instructions without calling to verify — wire fraud is a real and growing threat.
Proof of homeowner's insurance — Your lender requires proof of coverage before funding the loan.
Your closing disclosure — Print or bring a digital copy so you can compare final numbers.
Any outstanding documents your lender requested — Check with your loan officer a few days beforehand.

The Closing Appointment

The closing appointment typically lasts 60 to 90 minutes at the title company's office. Both buyer and seller (or their authorized representatives) attend. The closing agent will walk you through each document — the promissory note, deed of trust or mortgage, settlement statement, and various disclosures. You'll sign your name many times, and I mean many. Take your time, read what you're signing, and don't hesitate to ask questions.

Once both parties have signed, the title company disburses funds and the deed is recorded with the county Register of Deeds. In Michigan, recording typically occurs the same day or the next business day. Once the deed is recorded, you receive the keys. In most cases, you'll walk out with keys in hand the same day.

After Closing: What Comes Next

With the keys in your hand, the real work begins — making the house your own. Understanding the ongoing costs of homeownership, setting up utilities, planning your move, and getting familiar with your new neighborhood. For tips on what to tackle first, read my guide to seasonal home maintenance.

The relationship doesn't end at closing. I'm here as a resource for questions, contractor recommendations, and anything else that comes up as you settle into your new home.

If you're approaching closing or just starting the home buying process, I'd love to help. Schedule a consultation, call me at 810-513-3335, or reach out through my contact page. I'll make sure you feel prepared, protected, and excited about what's ahead.

What Happens After the Appraisal? Next Steps to Closing