Closing costs typically range from 2% to 5% of your total loan amount, adding thousands of dollars to your upfront homebuying expenses. While many buyers assume these fees are entirely non-negotiable, the reality is that you have the right to shop around for several of the services required to close your loan.
When you receive your official Loan Estimate from a lender, pay close attention to "Section C: Services You Can Shop For". While you cannot shop for the appraiser (the lender assigns one to ensure neutrality), you are completely free to choose your own providers for pest inspections, property surveys, and—most importantly—your settlement agent and Title Insurance provider.
Title insurance and settlement fees are often among the most expensive line items on your closing disclosure. By calling a few local title companies to compare their rates rather than just accepting the lender's default recommendation, you can easily save hundreds of dollars at the closing table.
Use the Consumer Financial Protection Bureau's (CFPB) interactive Loan Estimate explainer to see exactly where these shoppable services are listed on your paperwork.