What you can negotiate vs. what's fixed
Negotiable: origination, processing, underwriting, application, lender title. Fixed: transfer taxes, recording, appraisal (kind of — shop lenders, not vendors), prepaids. Get Loan Estimates from 3 lenders and put them side by side.
Seller concessions: free money if asked
On a $400K purchase with 5% down, you can ask the seller to credit 3% ($12K) at closing. Most buyers don't ask. Sellers in slow markets will agree because the price stays on comps — they're effectively financing your closing costs into the loan.
Why prepaids vary by closing date
Closing on the 1st: ~30 days of prepaid interest. Closing on the 28th: ~2 days. Same loan, $1,500–$2,000 difference in cash to close. Target end-of-month closings to minimize prepaid interest.
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Read the guideFAQ
Can closing costs be rolled into the loan?
Most can't — but you can take a 'lender credit' (worse rate in exchange for lender paying costs). Math the break-even before accepting; usually only worth it if you'll refi or sell within 3 years.
Do I need cash for an escrow shortage?
Yes — at closing, your lender collects 2–6 months of taxes/insurance to set up the escrow account. This is normal and accounted for above as 'prepaids.'
Are points worth it?
1 point (1% of loan) typically buys 0.25% off the rate. Break-even is 5–7 years. Only buy points if you'll hold the loan longer than that.
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