Avoid Paying Unnecessary Fees by Lowering Your Closing Costs—Here’s How

Dusty Rhodes • May 6, 2024

The hardest part’s over because you’ve found the perfect house. Now you have to go through negotiations to buy the house and determine your closing costs.


Closing costs are expenses in the home-buying process that typically equal 2% to 5% of your loan’s value, which can make them very pricy if you’re buying an expensive property.


Borrowers might be able to reduce closing costs with the right negotiation tactics. Wondering how to lower closing costs? Here are several tips to try before you sign off on your purchase.

What are closing costs?

Closing costs are fees that occur when finalizing a real estate transaction on the sale or purchase of a house. Once the property is transferred into your name, these fees are due. Both homebuyers and sellers pay closing costs, but it varies who pays closing costs and how much they pay.


A home loan amount, a property’s location, and a home buyer’s credit score are some of the factors determining closing costs. Some state laws also require professional services that increase a transaction’s closing costs.


Many closing costs are negotiable among homebuyers, sellers, and mortgage lenders. If you’re buying a property, it’s crucial to research and shop around for home loans before choosing a lender.


Can closing costs be negotiated?

There is some negotiation possible, and the following includes ways to possibly lower your closing costs.


Did you review your loan estimate form?

Before you close on your home, your chosen lender will provide you with a contract covering all the details of the agreement. In it, you’ll find information such as your monthly payment amount and interest rate, as well as the percentage owed for closing costs. Remember that things like a low credit score can contribute to a higher interest rate, so try to have more than the minimum credit score.


In reviewing these numbers, you might find that your closing costs are higher than what you’re willing to pay. Don’t hesitate to shop around at other banks and lenders, which might offer you a better deal, including lower closing costs.


Did you research lender fees?

Double-check the lender fees you have to pay to obtain your loan, as you can sometimes save money here, too. Your lender will charge an origination fee. You probably can’t get out of paying this, but your loan agreement could contain other negotiable fees. There’s no harm in asking your lender about these.


This is an area in which it would help to have other loan possibilities for reference. If your chosen lender tacks on more fees, show them your options and negotiate a lower rate or move on to a new lender.


Do you know what you are paying for?

It’s vital to understand closing costs before you go into negotiations. Of course, you have your responsibilities as the buyer—you must pay the application fee, attorney fees, credit report fees, and more. But you should also know what the seller should cover on their end of the deal.


For example, they should contribute to the closing costs, especially when the market is working in the buyer’s favor. To that end, the seller should also cover the real estate agent commissions.


Can you add the closing costs to your mortgage?

You can lower or avoid paying closing costs upfront by folding them into your mortgage. Some lenders will be open to this option, wherein they pay the closing costs for you upfront and then tack that price into your home loan.


This will save you cash in the short term, but you will end up paying more for your closing costs over time since your loan repayments will come with added interest.


Did you look for financial aid?

First-time homebuyers might be able to get a bit of financial relief when they purchase a property. Many grants can help lower the costs of the home-buying process to encourage more people to get into the real estate market.

For instance, if you choose a Fannie Mae loan to buy one of their foreclosed properties, you might be eligible for closing costs as low as 3%. There are also loan programs for those who have, for example, poor credit history, a low down payment, or veteran status.


Local governments or nonprofit organizations may also provide grants for the home-buying process. These programs mostly favor first-time home buyers, and they help cover your down payment and/or closing costs.


Did you research vendors?


As soon as you get your loan, skip to the part where it describes the vendors who can help you through the closing process. Sometimes the people selected by your bank will charge more than ones you can find yourself.


Do your due diligence to ensure you have the least expensive vendors possible. You can ask your lender for other potential vendors they might not have listed on the loan. This research could save you hundreds of dollars in closing costs.


How to lower closing costs

When figuring out how to lower closing costs, it’s most important to understand where you can save money. Even though each real estate deal is different, there are typical closing costs that homebuyers can expect.


Application fee: Before applying for a mortgage, ask your lender if they charge an application fee. If so, make sure you understand what it covers. Application fees are sometimes negotiable, but you might need leverage in your negotiations. That’s why it’s essential to shop around and know what other lenders charge for an application fee.


Appraisal: In most deals, you’ll need to pay an appraisal company to assess the property’s fair market value. Sometimes though, you won’t have to pay this fee, so be sure to discuss with your lender.


Association dues: If you’re buying a property in a homeowners or condo association, you may have to pay your annual association dues at closing. The buyer and seller can split this cost, and you may owe only a prorated amount of the association’s annual dues if you buy a property partway through the year.


Attorney fees: Some states require lawyers to review a real estate transaction’s closing documents. If so, both the buyer and seller have their own legal representation.


Courier fee: Your lender may use a courier to deliver documents required to close a deal. Doing so can expedite finalizing the transaction, but you may pay for this courier fee as a result.


Credit report fee: Your mortgage lender will run a tri-merge credit report. The reports are your credit scores and history from the three major credit bureaus. Depending on the lender, you may not get charged for this, but you’ll have to ask.


Discount points: These “points” represent money you pay your lender at closing to receive a lower mortgage rate. One discount point equals 1% of your home loan amount in exchange for dropping your interest rate by 25 percent. For example, if you pay your lender $1,000 on a $100,000 mortgage loan, your 4% interest rate drops to 3.75%.


It’s important to have a conversation with your lender about what your options are with these points, especially since points are not required. Using points makes sense on paper but paying more upfront may not work for everyone. For those who don’t plan to live in their home long-term or are likely to refinance, this isn’t the best option.


Escrow deposit and fee: Many lenders require you to have an escrow account for your expected property taxes and homeowner’s insurance premium. Your lender makes your insurance and tax payments for you using the money you deposit into your escrow account.


If you’re required to set up an escrow account, a title company, escrow company, or a lawyer will manage the process. They’ll charge a fee for doing so. Often, home buyers and sellers agree to split this cost. You can ask about these costs upfront to make sure they fit within your budget.


(Pro tip: It’s always a good tip to confirm with your city or county that your taxes have actually been paid!)


Flood hazard determination fee: The U.S. government requires a flood risk assessment for all real estate transactions. A third party handles the evaluation, and they’ll charge you a fee for their service. You’ll have to pay for flood insurance if they determine your property is in a flood zone. Be sure to keep this possible expense in mind when choosing a property.


Homeowner’s insurance: Homeowner’s insurance is usually not required by law, yet most lenders require it. It is a good idea to have it in case of damage to the property, and you’ll usually pay your first year’s insurance premium at closing.


Mortgage broker fee: You can hire a mortgage broker to help you find mortgage loans. If you do, they’ll charge you a commission based on the percentage of your loan amount. This is usually between 0.5% and 2.75% of the property’s purchase price. To save money, you could look for loans yourself.


Origination fee: Most lenders charge a loan origination fee when processing your home loan application, which is usually 1% of your loan amount. Not all lenders charge an origination fee, however, so, again, it’s essential to research different mortgage lenders.

  • Upfront: You pay the entire cost of your PMI at closing.
  • Split: You pay part of your PMI costs upfront, and your lender folds the balance into your monthly mortgage payment.
  • Monthly: You pay nothing on your PMI at closing, and your lender adds your entire PMI balance to your monthly mortgage payment.
  • Lender-paid: Your mortgage lender covers your PMI costs in exchange for raising your interest rate; this method can save you money at closing but cost you more over time.


Recording fees: Local governments require a copy of your title before it will recognize you as the property’s legal owner. Your title company usually handles this transaction, and they’ll charge you a fee for that service. However, that’s not always the case, so be sure to ask.


Title search fee: Before you can purchase a property, someone must verify its ownership. A title company handles this process, ensuring no one else can claim the property after you purchase it. The company charges a fee for this service, and it often comes hand-in-hand with title insurance, which protects the buyer from future claims against the property. This fee varies by location and property; it ranges from $200 to $1,000. You can save money by searching for a title company within your budget.


Overall, to save money, you should compare lenders and their fees to make sure you’re getting the best possible deal. You’ll see these fees on a document called a closing disclosure. These are the different costs to consider when buying a home.



Source: BiggerPockets Blog

Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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Balancing Wants vs. Needs in Your First Home

By Dusty Rhodes • May 18, 2026
Buying your first home comes with a mix of excitement and pressure, especially when it comes to balancing wants vs needs in first home decisions. It’s easy to get drawn to stylish finishes and dream features, but the most successful buyers focus first on how a home functions day to day – and what they can realistically afford, often using tools like a home affordability calculator to stay grounded. Striking the right balance early can make the difference between a home that simply looks good and one that truly supports your lifestyle. In this guide, we break down how to separate must-haves from nice-to-haves so you can make a confident, practical decision. From navigating your home search in Spokane, WA , to settling into a new space in Austin, TX , these insights are designed to help buyers in any market make smarter choices. What’s the difference between wants and needs in a first home? When buying your first home , understanding the difference between wants and needs is one of the most important steps in making a confident decision. “Needs are the must-haves that make a home work. Good access, enough space for your furniture, a functional layout, and a location that fits your routine are essential,” states Rob Romano, Director of Operations at Coutu Movers . “Wants are the extras that make the home feel great, but don’t impact how easily you can actually live in it or move into it.” Needs are the foundation of a home that works for you day to day. These are the elements that directly impact how easily you can live in the space. Wants, on the other hand, are features that make a home feel more personalized or visually appealing, but aren’t essential. Rob Romano recommends: “From our experience handling high-end moves, clients who get clear on their needs early make better decisions and avoid common headaches on moving day – such as tight spaces, tricky access, or furniture that simply doesn’t fit. When the fundamentals are right, the entire move – from packing to final placement – runs smoother and feels a lot less stressful.” How your budget shapes wants vs. needs Your budget plays a major role in defining what counts as a need versus a want. What fits comfortably within your monthly payment should guide your priorities – not stretch them. Look beyond the purchase price and consider your total monthly cost, including your mortgage , taxes, home insurance , and maintenance. If a home pushes your budget to the limit, features that were once “wants” can quickly become financial stressors. It also helps to leave room for unexpected expenses like repairs or higher utility bills. Choosing a home that fits your budget comfortably gives you more flexibility – and the option to upgrade over time without added pressure. Why function should always come first It’s easy to fall in love with a home based on how it looks, but how it works is what truly shapes your day-to-day experience. A well-designed space makes everything from moving in to settling down feel easier, while a beautiful but impractical home can quickly become frustrating. “The biggest mistake buyers make is prioritizing how a home looks over how it functions,” says Raymond Correira, owner of Correira Brothers’ Moving & Storage . “A true need is anything that reduces friction – layout, storage, accessibility, and how easily the home can be moved into and lived in day-to-day. Most ‘wants’ fade quickly if the space isn’t practical.” Key elements of a functional home include: A layout that flows naturally and fits your lifestyle. Adequate storage to keep spaces organized and clutter-free . Easy access for moving furniture and daily use. Practical room sizes that accommodate how you actually live. Thoughtful design that fits your lifestyle . The hidden costs of prioritizing wants over needs Focusing too heavily on wants can feel rewarding at first, but it often leads to unexpected challenges down the line. While cosmetic features and trendy finishes may make a home feel move-in ready, they can distract from deeper issues that are far more expensive and difficult to fix. Over time, those overlooked “needs” can turn into costly renovations, daily frustrations, or even limitations on how you use your space. Common hidden costs include: Reworking a layout that’s inefficient or awkward. Updating outdated systems such as electrical, plumbing, or HVAC. Addressing structural issues or foundational concerns. Expanding spaces that don’t meet your needs. Retrofitting storage or functionality that wasn’t there to begin with. “After years of working on homes across the Carolinas, we always tell buyers to prioritize structure over style,” suggests Lauren Garlock, controller at BGC Expert Contractors . “A bad layout or aging infrastructure is costly to fix, but outdated finishes are an easy upgrade. Buy for the structure, renovate for the style.” Common wants vs. needs examples for first-time buyers When you’re house hunting , it’s easy for wants to feel like needs – especially when a home is beautifully presented. Breaking things down side by side can help you stay focused on what truly matters for your day-to-day life.

Before You Fall in Love with a House, Do This First.

By Dusty Rhodes • April 20, 2026
Be honest. Have you started looking at homes online yet? If you have, it’s already time to get pre-approved . Because here’s what not enough people know. If buying a home is on your radar – even if it’s more of a someday plan than a right now plan – you don’t want to wait until later on in the process to tackle this step. No matter what you’ve heard, pre-approval isn’t about commitment . It’s about clarity . And here are the two big ways pre-approval sets you up for success. You Know Your Numbers Up Front During the pre-approval process, a lender will walk through your finances and tell you what you can borrow based on your income, debts, credit score , and more. And once you have that number, your search becomes a lot more focused. With a mortgage pre-approval, you know what you can borrow, so it’s easier to figure out your ideal price point, and what you can actually afford. And that clarity is key. Because if you just start browsing online and just guess at your price point, you run the risk of falling for a house that’s outside of your price range – or missing out on ones that aren’t. You want this number to be clearly defined before your search. Here’s why. You Can Move Quickly When You Find the One This is how a lot of home searches go today. You scroll through listings just to see what’s out there, and then it happens. You fall in love with something you’ve seen online. If you’re already pre-approved? You’re probably in great shape. But if you’re not… Instead of being able to jump on that house and quickly make an offer, you have to scramble to get a lender, gather the financial documents, and then submit the necessary pre-approval paperwork first. And while you’re waiting to hear back from your lender, someone else who’s more prepared could beat you to the house. As Bankrate explains: “The best time to get a mortgage preapproval is before you start looking for a home. If you find a home you love but don’t have a preapproval in hand, you likely won’t have time to get preapproved before you need to make an offer...” And that’s avoidable, with the right prep. Because while you can’t control when the right home shows up, you can be ready for it. Think of it like showing up to the starting line with your shoes tied and your warm-up done – while everyone else is still looking for parking. It’s not about rushing your timeline. It’s about removing the delay between finding the right home and being able to move on it. One Thing You Need To Know About Pre-Approvals Speaking of timing, pre-approvals do have an expiration date. So, be sure to ask your lender how long it’s good for. The Mortgage Reports explains: “ Mortgage preapproval letters are typically valid for anywhere from 30 to 90 days. However, a preapproval can be updated and extended if the lender re-checks your information.” Doing the right prep and knowing this information can make the whole process a lot smoother. You don’t have to be ready to buy to be ready to buy. Getting pre-approved doesn’t mean you’re committing to buy right now. It just means you’ve taken a step to understand your numbers. And when a home catches your attention, you’re prepped and good to go. Bottom Line Ask yourself this: if your perfect home popped up tomorrow, would you be ready to make a move? If the answer is no and you want to buy, it may be time to get pre-approved. You don’t feel behind before your search even officially kicks off.

How to Form New Habits To Keep Your Home Clutter-Free

By Dusty Rhodes • April 13, 2026
Tired of an untidy house? Try a new approach by adopting habits that automatically keep your home orderly Keeping our homes orderly and free of clutter is a struggle for many of us, especially if we’re not naturally organized . If you fall into this category, there’s definitely hope — you just may need to change your habits. Before you roll your eyes and shrug off that idea as impossible, let me tell you what has helped me keep a tidier home. I tried a concept called the “habit loop,” which is described in The Power of Habit: Why We Do What We Do in Life and Business, the best-selling book by Charles Duhigg. The habit loop consists of three steps: cue, routine and reward. The cue is a reminder that initiates the new behavior. The routine is the behavior itself. The reward is the benefit you get from implementing the new behavior. Duhigg says that during the first two weeks of developing a new habit, it’s important to give yourself a treat that you really enjoy right after you complete the new behavior. This will teach your brain to enjoy the new routine. While I’m a professional organizer and really do enjoy decluttering and organizing, I also have an extremely busy life and like to do a lot of other things besides organizing my house. Using the habit loop really helped me get into daily, automatic tidying habits. Perhaps this approach could offer a fresh, effective way for you too to conquer clutter in your home. Here’s how I use it. Tackle Your Own Spaces First If you want to form new no-clutter habits, it’s usually easiest to begin by dealing with your own possessions in spaces you don’t share with all family members. Personally, I live with some wonderful but messy people, so if you’re in the same situation, I recommend you start with your bedroom and bathroom. Duhigg says there’s no precise time frame for how long it takes to form a new habit, but other researchers report it takes 21 to 66 days or even longer. Personally, I needed 21 to 45 days of the habit loop to form a new habit, depending on what the routine was. After that, the behavior became automatic. 1. Make your bed. No matter how messy the bedroom is, a made bed makes it neater. To create a cue for making the bed, pick something you do without fail every day, such as turning off your alarm. It’s best to do the new behavior as soon as possible after the reminder. (I sometimes get distracted if I don’t make my bed right after my cue, and then the bed might remain unmade all day.) After you make the bed — or, for that matter, after you do any new task you’re trying to make habitual — be sure to reward yourself. Your reward can be as simple as a silent “Good job!” you tell yourself or as ritualistic as brewing your morning cup of coffee and then enjoying sipping it. Just remember to give yourself a compliment or perk for working toward your tidy-house goal. 2. Clear your bathroom counters. Brushing my teeth has become the cue I use to trigger my habit of clearing my bathroom counters both morning and night. Each morning after I brush, I put away my makeup, hair products, blow dryer and toothpaste. Then I wipe off the water that has collected on the countertops. I repeat the routine at night, putting away my lotion and other nighttime beauty products. Then I congratulate myself on a job well done. Though I didn’t get it right the first few days, within 21 days I knew I’d managed to develop this habit when I automatically began clearing the counters after brushing. For me, coming home to a clean bathroom is the greatest reward! 3. Put away your attire after wearing it. On most days I wear two different outfits, one for work and one for exercise. If I’m not paying attention to where I put my things, a mess can quickly build up. So I decided that removing my clothes would be the cue to place dirty clothes in the hamper and those I’ll wear again neatly in the closet. If you share a closet with a partner who doesn’t want to participate in this routine, you have a couple of options: You can put your partner’s clothes away or leave them out, knowing that at least half the mess is put away. Since nagging or brooding rarely changes other people’s habits, it might be better to give yourself a reward for cleaning up your own mess and move on. Tackle Common Rooms Next As you move into the common areas of your home, prepare for potential barriers to establishing tidy habits since you may be dealing with other family members’ messes. While this can be frustrating, if family members aren’t cooperative I recommend simply focusing on clearing your own mess. Hopefully, your new habits will eventually rub off on your family. If not, well, your home will still be less cluttered than it was before your new habits. 4. Unbury coffee and end tables. Your cue for clearing the tables in your living room could be turning off the television or putting down the book you were reading. Remove cups, glasses and bowls from the room’s flat surfaces and place them in the dishwasher. Put magazines back in their rack or recycle those you’ve finished reading. Place remote controls in a basket next to the television. Put away books and papers and anything else left cluttering the room. Then congratulate yourself. Your living room will look great in the morning when you start your day. 5. Clear the kitchen counters. Mail, school papers, ear buds, cellphones, vitamins, dog treats, receipts, tissue boxes, keys and more can litter kitchen countertops, making food prep difficult. Plus, this type of miscellaneous debris makes the kitchen look messy and disorganized even if cooking surfaces are cleared. My personal cue for clearing my countertops each night is closing my dishwasher door after I load it. I then scan all the miscellany on the counters and quickly sort and put everything in its place. This may take me an extra 10 minutes, but by doing it each evening I find it is easier to keep the counters clear during the day. I then reward myself with a small piece of chocolate since this habit is much harder to implement than others! My other reward is coming downstairs in the morning to a clean kitchen. 6. Tidy your front hall. I walk through my front hallway on the way to bed and use the walk as my cue to tidy up the space. We have a hall closet where I can store shoes and coats, and each family member has a basket in the closet for personal items. If you don’t have a front hall closet, you might consider storing catchall baskets under a decorative table. I tell myself, “Great job!” before I head off to bed. It’s wonderful having a clutter-free front hall, especially when unexpected visitors stop by. Develop New Habits on What You Bring Into Your Home 7. Manage your mail. Mail is a major source of clutter in many homes. To cut down on the volume, you might want to receive bills and magazines electronically. There are also tools available for unsubscribing from catalogs and unsolicited credit card offers; visit DMAchoice.org or Catalogchoice.org for more information. Even with these steps, mail still has a way of piling up and causing a mess. One relatively easy habit to develop is sorting your mail before you enter the house. I collect my mail from the mailbox and walk directly to my recycling bin, where I immediately place advertising circulars. I then open unfamiliar envelopes (which usually are ads) and toss them in the bin. Since I receive most of my statements electronically, I’m left with very little to bring inside. Remaining items go into an inbox for incoming mail. I then give myself a pat on the back for preventing clutter from entering my house. 8. Be intentional with your purchases. Another habit to consider implementing is being mindful of your purchases. I’ve developed the habit of thinking seriously about the clutter factor of every purchase before buying. As I reach for my credit card, I am reminded to stop and consider whether I already own something that will suffice. I also think about where I’m going to store the item or what I’ll get rid of to make room for the new purchase. For example, when I’m considering a new pair of pants, I ask myself what I have in my closet that might be similar. If I already have too many similar items and don’t want to part with any I already own, I skip the new purchase. I use a similar approach when considering household and kitchen items. My purchases are always intentional because I’m working hard to live in a clutter-free home. I deserve a big pat on the back for working on this habit. I’m not only reducing clutter but I’m also leaving more money in my bank account at the end of the month to spend on things I truly want or need.