You’ve spent months finding the right home, negotiated a fair purchase price, and finally got an accepted offer. Then you sit down at the closing table and discover you owe thousands of dollars you never fully budgeted for. This is one of the most common and most frustrating surprises in real estate, and it happens to buyers at every price point.
Closing costs on a typical home purchase run between 2% and 5% of the loan amount, according to CFPB guidance. On a $380,000 loan, that’s $7,600 to $19,000 in additional cash required to close. The gap between what you budgeted and what you actually owe often comes down to one thing: nobody walked you through the numbers before you got to the table.
That changes here. As a soft credit pull mortgage broker with access to 500+ wholesale lenders, Duane Buziak at Coast2Coast Mortgage LLC gives buyers in Virginia, Florida, Tennessee, and Georgia a real line-by-line closing cost estimate before any hard inquiry touches their credit file. The NoTouch Credit Pull process delivers a no hard inquiry mortgage pre approval so you can see your actual Loan Estimate, compare it against any other lender’s offer, and make a fully informed decision without any credit score impact. This article breaks down every closing cost category with real dollar figures, explains the structural difference between broker and retail lender fee models, and gives you a clear action path to close with confidence.
The Two Buckets Every Closing Cost Falls Into
Before you can negotiate closing costs, you need to understand how they’re organized. Every cost that appears on your Loan Estimate fits into one of two primary categories: lender fees and third-party fees. Understanding which is which determines exactly where you have leverage.
Lender Fees (Negotiable): These include origination charges, underwriting fees, and discount points. Origination fees compensate the lender or broker for processing your loan. Underwriting fees cover the cost of evaluating your file. Discount points are prepaid interest you pay upfront to buy down your interest rate. These fees are directly controlled by the lender, which means a broker working across 500+ wholesale lenders can reduce or eliminate them entirely using lender credits, a mechanism we’ll explain in detail in the next section.
Third-Party Fees (Less Negotiable, But Shoppable): Title insurance, settlement attorney fees, appraisal costs, and recording fees are charged by parties outside the lender. You don’t negotiate these with your broker, but you do have the legal right to shop for some of them independently. The CFPB Loan Estimate separates these into “services you can shop for” and “services you cannot shop for,” which is a distinction that can save you hundreds of dollars if you use it strategically.
The second major category that confuses buyers is prepaid items and escrow reserves. These are not fees in the traditional sense. They are cash requirements tied to your loan and property ownership. Prepaid interest covers the days between your closing date and your first full mortgage payment. Homeowners insurance premiums are collected upfront. Property tax reserves fund your escrow account so your lender can pay your tax bill when it comes due. These amounts flow back to you indirectly over time, but they require real cash at closing, and many buyers mistake them for lender profit. They are not.
Your legal protection in all of this is the Loan Estimate. Federal law under the TILA-RESPA Integrated Disclosure Rule, enforced by the CFPB, requires every lender to deliver a standardized Loan Estimate within three business days of receiving a completed loan application. This document itemizes every cost, organized by category, with clear labels for fees that can and cannot change. It is the baseline document you should use to compare every offer you receive. If a lender won’t give you one, that is a serious red flag.
Real Numbers: What a $400,000 Purchase Actually Costs to Close
Abstract percentages don’t help you budget. Real numbers do. Here’s a realistic, line-by-line closing cost breakdown for a $400,000 purchase with 5% down, resulting in a $380,000 loan amount.
Origination Fee: $950–$1,900 (0.25%–0.5% of loan amount on the wholesale side; retail lenders often charge 1% or embed the equivalent in the rate spread)
Underwriting Fee: $500–$895 (lender-specific; some wholesale lenders charge none)
Appraisal Fee: $500–$700 (third-party, lender-ordered; varies by property type and location)
Title Insurance (Lender’s Policy): $800–$1,200 (required by lender; owner’s title policy is separate and optional but strongly recommended)
Owner’s Title Insurance: $400–$600 (one-time purchase; protects your ownership interest)
Settlement/Attorney Fee: $400–$800 (required in attorney-closing states: VA, TN, GA; Florida uses title agents but attorney closings are common)
Recording Fees: $100–$250 (government charge to record the deed and mortgage; varies by county)
Credit Report Fee: $25–$75 (lender-ordered; typically non-negotiable)
Prepaid Interest: $600–$900 (depends on closing date; closing at month-end minimizes this)
Homeowners Insurance Prepaid (12 months): $900–$1,800 (varies by property, location, and coverage level)
Escrow Reserves (Property Taxes, 2–3 months): $1,500–$2,700 (based on your local tax rate; this money is yours, held in escrow)
Realistic Total Range: $8,000–$13,000 for a well-shopped transaction on a $380,000 loan. This aligns with the CFPB’s 2%–5% guidance and reflects the lower end achievable through wholesale lender access and strategic use of lender credits.
Now here’s the math that makes rate AND closing costs matter simultaneously. On a $380,000 loan, the difference between a 6.5% rate and a 6.875% rate produces a monthly payment of approximately $2,402 versus $2,496. That’s $94 per month, or $1,128 per year, every year for the life of the loan.
This is where lender credits become a strategic tool rather than a gimmick. If a lender offers you a 6.875% rate but credits you $3,000 toward closing costs, your out-of-pocket at closing drops significantly. The break-even point on that trade-off: divide the credit amount by the monthly payment increase. $3,000 divided by $94 equals approximately 32 months. If you plan to keep the loan longer than 32 months, paying the lower rate makes more financial sense. If you expect to sell or refinance within three years, taking the lender credit and the slightly higher rate may cost you less overall. A broker with access to multiple rate sheets can model both scenarios and show you the actual numbers for your specific file.
Broker vs. Retail Lender: Why the Fee Structure Is Fundamentally Different
The reason closing costs vary so dramatically between lenders isn’t random. It’s structural. Retail direct lenders like Rocket Mortgage and Movement Mortgage operate on a single rate sheet with overhead built into every transaction. A broker like Duane Buziak at Coast2Coast Mortgage LLC operates on a wholesale model, where compensation is disclosed as a flat fee on the Loan Estimate and the rate is sourced from a competitive wholesale marketplace.
Here is how the structural differences break down across the factors that matter most to your closing costs:
| Feature | Duane Buziak / Coast2Coast (Broker) | Rocket Mortgage (Retail) | Movement Mortgage (Retail) |
|---|---|---|---|
| Rate Source | 500+ wholesale lenders, competitive marketplace | Single retail rate sheet | Single retail rate sheet |
| Origination Fee Transparency | Flat broker fee disclosed on Loan Estimate | Fee embedded in rate spread; less visible | Fee embedded in rate spread; less visible |
| Lender Credit Access | Multiple lender credit options across 500+ lenders | Limited to internal pricing options | Limited to internal pricing options |
| Soft-Pull Pre-Approval | Yes — NoTouch Credit Pull, no hard inquiry | Not advertised as standard product | Not advertised as standard product |
| Non-QM / Specialty Products | Full access: DSCR, Bank Statement, ITIN, Foreign National, VA to 500 FICO | No Non-QM programs | Limited Non-QM access |
| Loan Estimate Comparison | Invite borrowers to compare — Dare to Compare | Single offer presented | Single offer presented |
The key transparency difference is broker compensation disclosure. Federal law requires brokers to disclose their compensation as a line item on the Loan Estimate. When you work with Duane Buziak, you see exactly what the broker fee is. Retail lenders, by contrast, build their profit into the rate spread, which means the margin isn’t a separate line item you can evaluate. It’s baked into the rate itself, making it harder to identify and compare.
This is the foundation of the Dare to Compare challenge. Duane shops 500+ wholesale lenders for every file and actively invites borrowers to bring competing Loan Estimates from any lender. The structural advantage of wholesale access means the comparison almost always favors the broker model on total cost, but the invitation to compare is itself the proof. Retail lenders rarely make the same offer.
Fees You Can Shop, Fees You Can’t, and Where Negotiation Actually Lives
The CFPB Loan Estimate organizes third-party fees into two labeled sections: “Services You Can Shop For” and “Services You Cannot Shop For.” This distinction is one of the most underused cost-reduction tools available to buyers, and most people never look at it.
Services you can typically shop for include title insurance, settlement agents or closing attorneys, title search fees, and pest inspection fees. You are legally permitted to select your own provider for these services, and price differences between providers can range from a few hundred to over a thousand dollars depending on the market. Your lender is required to provide a written list of approved providers, but you are not required to use them.
Services you typically cannot shop for include the appraisal (lender-ordered to ensure independence) and the credit report fee. These are assigned by the lender and are generally non-negotiable.
This is also where the soft pull mortgage broker advantage becomes concrete. Starting your rate search with a NoTouch Credit Pull means you can collect and compare multiple Loan Estimates from multiple lenders without triggering a single hard inquiry. Traditional rate shopping carries the risk of multiple hard pulls damaging your credit score before you’ve even committed to a lender. With a no credit hit mortgage application approach, you eliminate that risk entirely. You gather real Loan Estimates, compare the “can shop” line items across providers, and make your selection from a position of full information.
Seller concessions add another layer of strategy, particularly in Virginia, Florida, Tennessee, and Georgia markets. Negotiating seller-paid closing costs is a common and legitimate tactic. On conventional loans, sellers can contribute up to 3% of the purchase price toward buyer closing costs when the buyer is putting less than 10% down, and up to 6% when the buyer puts 10% or more down. FHA loans allow seller concessions up to 6% of the purchase price. These contributions don’t make closing costs disappear. They shift who writes the check. The costs still exist and still appear on the Loan Estimate, but the seller funds them at closing rather than the buyer.
State-Specific Closing Cost Factors in Virginia, Florida, Tennessee, and Georgia
Closing costs aren’t uniform across state lines. Each of the four states where Duane Buziak is licensed has specific taxes, legal requirements, and local customs that affect your total cash to close. Here’s what buyers in each state need to know.
Virginia: Virginia is an attorney-closing state, meaning a licensed real estate attorney must conduct the closing. Settlement attorney fees typically run $400–$800. Recordation taxes apply to both the deed and the deed of trust (mortgage). By custom, the buyer pays the deed of trust recordation tax and the seller pays the grantor’s tax, though this is negotiable. VA loan borrowers in Virginia should also budget for the VA funding fee, which is charged by the Department of Veterans Affairs, not the lender. Per VA.gov, the 2026 funding fee schedule is: 2.15% of the loan amount for first-time VA use with no down payment, 3.3% for subsequent use with no down payment, 1.5% with 5% or more down, and 1.25% with 10% or more down. This fee can be financed into the loan amount.
Florida: Florida buyers face two state-specific taxes that don’t exist in most other states. The documentary stamp tax on the mortgage note is $0.35 per $100 of loan amount. On a $380,000 loan, that’s $1,330. The intangible tax on the mortgage is $0.20 per $100 of loan amount, adding another $760 on the same loan. Together, these two taxes add over $2,000 to a Florida buyer’s closing costs compared to states without them. Florida title insurance rates are state-regulated, which limits price variation but also means you can verify you’re being charged correctly.
Tennessee: Tennessee is an attorney-closing state, and recording fees vary by county, so your Loan Estimate will reflect the specific county where your property is located. Tennessee has no state income tax, which is a long-term financial benefit, but it does not reduce your closing costs directly. Buyers should confirm local customs around who pays which fees, as these vary between counties and can affect your negotiating position.
Georgia: Georgia is also an attorney-closing state. Georgia charges a transfer tax of $1.00 per $1,000 of the purchase price, paid by the buyer by custom. On a $400,000 purchase, that’s $400. Attorney closing fees in Georgia typically run $400–$700. As with Tennessee, local customs vary, and your purchase contract should specify who pays which costs to avoid surprises at closing.
8 Questions Buyers Always Ask About Closing Costs
Q1: Can closing costs be rolled into the loan?
In most cases, you cannot roll closing costs into a purchase loan because the loan amount is capped at the appraised value or purchase price. However, lender credits effectively achieve a similar result by offsetting closing costs in exchange for a slightly higher interest rate. VA loans allow the VA funding fee to be financed into the loan amount.
Q2: What is a no-closing-cost mortgage and what does it actually cost you?
A no-closing-cost mortgage means the lender covers your closing costs by charging a higher interest rate. The costs don’t disappear; they’re converted into a higher monthly payment over the life of the loan. On a $380,000 loan, even a 0.25% rate increase adds roughly $57 per month, or $684 per year. Over five years, that’s $3,420, which often exceeds the original closing costs.
Q3: How do I read a Loan Estimate?
The CFPB Loan Estimate is a three-page standardized form. Page one shows your loan terms and projected monthly payment. Page two breaks down all closing costs by category, including which services you can shop for. Page three shows your cash to close and allows you to compare offers side by side. Focus on Section A (origination charges) and Section B/C (services you can and cannot shop for) when comparing lenders.
Q4: What is the difference between closing costs and prepaids?
Closing costs are fees paid to the lender, title company, and government for processing and recording your loan. Prepaids are upfront deposits for ongoing expenses like homeowners insurance, property taxes, and interest. Prepaids are not lender profit; they are your own money held in escrow or paid to your insurance carrier. Both appear on the Loan Estimate and both require cash at closing.
Q5: Can I get a mortgage pre-approval without a hard pull?
Yes. Mortgage pre approval without hard pull is exactly what the NoTouch Credit Pull process delivers. A soft credit pull mortgage review gives Duane Buziak the information needed to provide a real rate quote and closing cost estimate without any hard inquiry appearing on your credit report. This means a no credit hit mortgage application is your starting point, not a risk you take before you’re ready to commit.
Q6: What fees are non-negotiable?
Government fees such as recording charges and transfer taxes are set by law and cannot be negotiated. The appraisal fee is lender-ordered and typically non-negotiable. What is negotiable: origination fees, lender credits, and which title or settlement provider you use. A broker with wholesale access has more levers to pull on the negotiable side than a retail direct lender.
Q7: How much should I budget for closing costs in Virginia, Florida, Tennessee, or Georgia?
Budget 2%–4% of your loan amount as a baseline, then layer in state-specific costs. Florida buyers should add approximately $2,000+ for doc stamp and intangible taxes. Virginia VA loan borrowers must account for the VA funding fee (1.25%–3.3% of loan amount depending on down payment and usage). Georgia buyers add the $1 per $1,000 transfer tax. Tennessee costs are closer to the national baseline but vary by county. A real Loan Estimate from a licensed broker is the only way to get an accurate number for your specific transaction.
Q8: What happens if my closing costs change between the Loan Estimate and Closing Disclosure?
Federal law limits how much certain fees can increase. Lender fees in Section A cannot increase at all between the Loan Estimate and Closing Disclosure. Third-party fees for services you did not shop for can increase by no more than 10% in total. Fees for services you shopped for yourself can change without limit if you chose a provider not on the lender’s approved list. If you receive a Closing Disclosure with significant increases, ask your lender for a written explanation and compare it line by line against your original Loan Estimate.
Content prepared by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC, NMLS #376205
Get Your Full Closing Cost Estimate in VA, FL, TN, or GA — No Credit Hit Required
If you’re buying a home in Virginia, Florida, Tennessee, or Georgia and you want to know exactly what you’ll pay to close before you’re sitting at the table, the NoTouch Credit Pull is your starting point. There’s no hard inquiry, no credit score impact, and no obligation. You receive a real Loan Estimate with every cost itemized, the same document your lender is legally required to provide, before you’ve committed to anything.
This is the soft credit pull mortgage advantage that separates a broker from a retail lender. Once you have Duane’s Loan Estimate in hand, bring any competing offer you’ve received. The Dare to Compare challenge is an open invitation: compare the origination fees, the rate, the lender credits, the total cash to close. The wholesale rate access and flat-fee broker compensation structure are built to win that comparison, but the proof is in the numbers on your specific file, not in a marketing claim.
To get started, call 804-212-8663 or Schedule your free consultation today. Duane Buziak, NMLS #1110647, is licensed to originate mortgage loans in Virginia, Florida, Tennessee, and Georgia only. This offer is not available in all states.