Average closing costs by state make a useful benchmark, but the number you pay comes down to line items you can change. Duane Buziak, NMLS #1110647, explains seven strategies for lowering closing costs in VA, FL, TN, GA, DC, NC, SC, and MD. Closing costs are the fees, taxes, and prepaid items due when a home purchase or refinance funds. The first strategy relies on the NoTouch Credit Pull, a soft credit pull mortgage pre-approval. It checks your credit without a hard inquiry, the kind of pull that is recorded on your credit report and can lower your score. That lets you gather competing offers with no credit hit mortgage application. One clarification up front: LowerMortgageRates is Duane Buziak, Coast2Coast Mortgage LLC (NMLS #376205), and is unaffiliated with Lower.com, a direct lender.
1. Compare Loan Estimates Using a NoTouch Credit Pull
Collect several Loan Estimates before you commit, because fees on the same loan differ from one provider to the next and you can only see that by comparing. A Loan Estimate is the standardized three-page form that lenders and brokers must give you after you apply, and the CFPB explains how to read it. The obstacle is usually fear of credit damage. A NoTouch Credit Pull removes it: it is a soft-pull pre-approval, so it shows your profile without the hard inquiry a standard application creates. Mortgage pre approval without hard pull means you can request offers from more than one place without stacking inquiries.
Suppose a buyer gathers three Loan Estimates in one week. The rates look nearly identical, yet Section A (origination charges) differs by several hundred dollars between the first and third. Without the side-by-side, that gap stays invisible.
- Request a NoTouch Credit Pull from a soft pull mortgage broker.
- Ask each provider for a Loan Estimate on the same loan amount, loan type, and lock period.
- Compare Sections A, B, and C, then the interest rate and APR.
- Note which fees are itemized and which are bundled under vague labels.
The common mistake is comparing interest rates alone. A lower rate paired with heavy origination and third-party fees can cost more in the first five years than a slightly higher rate with lean fees. Track the total of Sections A, B, and C across estimates, and how many offers you actually compared. Three is a workable minimum.
2. Use a Broker Who Shops 500+ Wholesale Lenders
A broker submits one file to many wholesale lenders, so pricing and fees compete for your loan instead of coming from a single rate sheet. Duane Buziak works with 500+ wholesale lenders through Coast2Coast Mortgage LLC. Because the file goes out once, you avoid repeating applications, and the no hard inquiry mortgage pre approval keeps the process quiet on your credit report.
Duane Buziak also runs a process called Dare to Compare: you bring the best Loan Estimate you already hold, and the broker tests it against wholesale pricing line by line. Suppose a buyer arrives with a retail estimate. If wholesale pricing beats it, the buyer switches. If not, the buyer keeps it and has lost nothing.
Structure matters when comparing providers. This table describes how each model is built, not who wins.
| Feature | Broker (Duane Buziak) | Retail direct lender (for example Rocket Mortgage, Movement Mortgage) | Online aggregator |
|---|---|---|---|
| Who funds the loan | One of many wholesale lenders chosen per file | The company itself | Partner companies that buy the lead |
| Number of pricing sources | 500+ wholesale lenders | One company’s rate sheet | Varies by marketplace |
| How compensation appears | Broker compensation disclosed on the Loan Estimate | Origination and other charges on the Loan Estimate | Paid by partners, then fees on their estimate |
| Soft-pull option | NoTouch Credit Pull | Ask before applying; policies vary | Varies; ask before submitting |
Practice is simple: share your best existing estimate, let the broker price it across lenders, and read the disclosed broker compensation. Ignoring that compensation is the classic error, since it appears on the Loan Estimate and belongs in your comparison. Loan size matters too. As of 2026, FHFA sets the conforming baseline at $806,500, with a high-cost ceiling of $1,249,125, and pricing changes above those limits. Measure total cost, meaning fees plus the rate’s effect, against the best offer you already have.
3. Separate Negotiable Fees From Fixed Government Costs
Not every closing cost can be negotiated, and the fastest way to save is to stop spending effort on fees no one controls. Sort each line into three groups: fees the lender or broker sets, fees you can shop, and taxes or charges set by the state or county. Only the first group is up for negotiation, and the second you handle by choosing providers.
Florida shows the point. As of this writing, the state charges documentary stamp tax on mortgage notes at $0.35 per $100 and a 0.2% nonrecurring intangible tax on the loan amount, per the Florida Department of Revenue. On a $400,000 loan that is $1,400 plus $800, or $2,200 that no lender can waive. Rates change, so confirm the current figures before you budget. The savings sit in origination, processing, and underwriting charges. Other states in our footprint have their own recording fees and transfer taxes, and who pays them can depend on local custom and your contract.
- Print the Loan Estimate and highlight each line in one of three colors: negotiable, shoppable, government-set.
- Ask the provider to justify or reduce every line in the negotiable group.
- Get the government-set total in writing so you can budget without surprises.
The mistake to avoid is treating taxes as lender fees and haggling over them. It wastes goodwill and time. Measure the dollar amount sitting in negotiable categories before and after your conversation. If the number does not move, compare that provider against another.
4. Shop Title Insurance and Settlement Services
You often get to pick your own title and settlement providers, and doing so directly lowers Section C of the Loan Estimate. Section C lists services you are allowed to shop for, and the Loan Estimate includes a written list of providers the lender suggests. You are not bound to it. The CFPB’s guidance explains the form’s structure and that you can shop these services.
Here is an illustration. Two written title quotes come back for the same purchase. In states where the premium itself is regulated, the premiums may be identical or nearly so. The settlement fee, endorsements, courier charges, and closing protection fees still differ, and together they can separate the two quotes by a meaningful amount.
- Find the shoppable services list on your Loan Estimate.
- Request written quotes from at least two title or settlement companies.
- Ask each to itemize the premium, settlement fee, endorsements, and any recording or courier charges.
- Compare full totals, then give the winner’s quote to your broker so the estimate is updated.
The frequent mistake is comparing only the premium. The premium is often the least flexible number, so the differences hide in the add-ons. Also check who is paying: in some states and markets, sellers customarily pick the title company, which shapes what you can change. Measure your revised Section C total against the original estimate, and do it before your rate lock date approaches so a change in provider does not delay closing.
5. Ask for Seller Concessions and Lender Credits
Closing costs can be offset two ways: the seller agrees to contribute, or you accept a slightly higher rate in exchange for a credit. Each lowers cash to close, but only one is free of long-term cost. A seller concession is negotiated in the purchase offer and is capped by the loan program. A lender credit is paid for through the rate, so you repay it over time in the monthly payment.
Take a labelled hypothetical. A $400,000 loan on a 30-year fixed at 6.5% has a principal and interest payment of about $2,528. At 6.875%, it is about $2,628, roughly $99 more per month. Suppose the higher rate carries a $4,000 lender credit. Divide $4,000 by $99 and you break even at about 40 months. Keep the loan for eight years and the credit costs you more than it saved. Sell or refinance in two, and you come out ahead.
- Ask your agent to include a seller concession in the offer where the market allows.
- Ask the broker to price the same loan with and without a lender credit.
- Divide the credit amount by the monthly payment difference to find break-even months.
- Compare that number with how long you realistically expect to hold the loan.
The mistake is taking a credit without checking break-even against your timeline. Measure cash to close and months to break even on any higher-rate trade. For context on where market rates sit, the Freddie Mac Primary Mortgage Market Survey publishes weekly national averages.
6. Use Down Payment and Closing Cost Assistance Programs
State and local assistance programs can cover part of your closing costs if you qualify, and they are among the largest single reductions available. Programs such as Dynamo and Turbo DPA exist to help eligible buyers with cash to close. Availability, income limits, purchase price caps, and funding vary by state and change often, so confirm current terms before relying on any of them. Housing finance agencies in Georgia and Tennessee, for example, run their own buyer programs, and other states in our footprint have similar ones.
Consider a first-time buyer in Georgia or Tennessee. After confirming eligibility, the buyer uses an assistance program to cover part of the closing costs. Cash needed at the table falls, though the program may come with a slightly different rate or a repayment feature. That trade is the reason to run the numbers.
- Check eligibility: income, credit, first-time buyer status, property location, and price limits.
- Complete any homebuyer education course the program requires.
- Ask the broker to match a compatible loan, since not every loan type pairs with every program.
- Reserve funds at the right stage, which for some programs is before you sign a contract.
Applying late is the common failure. Some programs need a reservation before the contract, and others run out of funding. A mortgage pre approval without hard pull lets you explore program fit early without affecting your score. Measure cash to close after assistance, and note any change in the monthly payment or interest rate that the program creates. A program that saves $5,000 up front but raises the payment noticeably is a trade, not a gift.
7. Time Your Closing Date and Rate Lock to Trim Prepaid Costs
Closing late in the month reduces prepaid interest, and a lock sized to your timeline avoids paying for days you do not need. Prepaids are costs collected in advance rather than fees for a service. They include interest from your closing date to month-end, plus initial escrow deposits for taxes and insurance. Because they are not fees, they will not be negotiated away, but you can control how large the interest piece is.
Illustrative math: on a $400,000 loan at 6.5%, interest accrues at about $71 a day ($400,000 x 0.065 / 365 = $71.23). Closing 10 days later in the month cuts prepaid interest by roughly $712. The catch is that your first payment is not due sooner or later in any meaningful way, so this moves cash from closing day into later months rather than erasing it. It helps most if cash to close is your bottleneck.
- Ask the broker for the per-day interest figure at your loan amount and rate.
- Align the closing date with the purchase contract and the seller’s timeline.
- Choose a lock period that covers the realistic time to close, plus a short cushion.
- Compare lock costs for different lengths before you commit.
Two errors show up. One is treating prepaids as junk fees and hunting for a reduction that does not exist. The other is a lock that is far too long, which costs money, or far too short, which expires before closing and can force an extension. Measure prepaid interest and lock cost across your closing-date options, then choose the combination with the lowest total.
Ten questions buyers ask about closing costs by state
What are average mortgage closing costs?
Average closing costs typically run a few percent of the loan amount, and the exact share depends on your state, county, loan type, and price. State averages published by data firms are benchmarks only. Your Loan Estimate is the figure that counts.
Why do closing costs differ by state?
They differ because taxes, recording fees, title insurance rules, and attorney involvement are set locally. Florida’s documentary stamp and intangible taxes, for instance, have no direct equivalent in every other state.
Which closing costs can I actually negotiate?
Origination, processing, underwriting, and similar charges set by the provider are negotiable. Shoppable services like title and settlement can be lowered by choosing another provider, and government taxes cannot be negotiated.
What is a Loan Estimate?
A Loan Estimate is a standardized form showing your loan terms, projected payments, and closing costs. The CFPB requires it shortly after you apply, which makes offers comparable.
What is a NoTouch Credit Pull?
A NoTouch Credit Pull is a soft-pull pre-approval that reviews your credit without a hard inquiry. A hard pull is recorded on your credit report and can lower your score, while a soft pull is not.
Can I compare offers without hurting my credit?
Yes, a soft credit pull mortgage pre-approval lets you gather offers without a hard inquiry. Ask each provider whether it uses a soft or hard pull before you authorize anything.
Is LowerMortgageRates the same as Lower.com?
No. LowerMortgageRates is Duane Buziak, NMLS #1110647, with Coast2Coast Mortgage LLC, NMLS #376205, and is unaffiliated with Lower.com, a direct lender.
How does a broker lower closing costs?
A broker submits your file to many wholesale lenders so pricing and fees compete. Duane Buziak works with 500+ wholesale lenders, and broker compensation is disclosed on your Loan Estimate.
What is Dare to Compare?
Dare to Compare is Duane Buziak’s process of testing your best existing Loan Estimate against wholesale pricing. If it cannot beat your estimate, you keep the one you have.
Are lender credits worth taking?
They are worth taking only if you leave the loan before break-even. Divide the credit by the extra monthly payment: a $4,000 credit against $99 more per month breaks even at about 40 months.
Where to start: two steps that expose every other saving
Begin with strategies 1 and 2. Collecting several Loan Estimates through a NoTouch Credit Pull costs nothing, carries no hard inquiry, and shows which lines are high, so it points you to the strategies worth your time. From there, work through fee negotiation, title shopping, credits, and assistance programs, and use timing last to fine-tune cash to close.
Don’t let uncertainty about mortgage rates cost you thousands. Discover your personalized options with a trusted mortgage professional who can compare rates across multiple lenders without impacting your credit score. Schedule your free consultation today and take the first step toward securing the best mortgage solution for your unique financial goals. Call 804-212-8663. Lower Mortgage Rates by Duane Buziak serves borrowers in VA, FL, TN, GA, DC, NC, SC, and MD only.