We're proud to share that Sonic Loans founder Charlie Shami was recently featured in a Redfin guide on one of the most common questions home buyers ask: can you actually negotiate closing costs?
The article — Can You Negotiate Closing Costs When Buying a Home — brings together perspectives from real estate attorneys, lenders, and housing directors across the country. Charlie was invited to weigh in from the lender side of the table, where buyers usually have more room to negotiate than they realize.
What Charlie Told Redfin
Charlie's core message in the piece is simple, and it's one we repeat to almost every Sonic Loans client:
"When buying a home, closing costs, just like anything else, are always negotiable. Every fee, or cost, can usually be negotiated."
— Charlie Shami, founder of Sonic Loans, Sonic Title, and Sonic Realty (via Redfin)
He also pointed out that those costs don't have to come out of the buyer's pocket at all. They can be paid by the seller as seller credits (sometimes called seller concessions), by the lender as lender credits, or in some cases absorbed by the agents in the deal.
Knowing the Limits Before You Ask
Charlie's other big point in the Redfin article is that you have to know what your loan program actually allows before you start negotiating. Conventional loans generally cap seller-paid closing costs at 3% of the purchase price, while FHA and VA loans typically allow up to 6%. USDA loans have their own rules.
That ceiling matters. If you ask for 6% in seller credits on a conventional loan, the extra is wasted — your lender can't apply it. A good loan officer will tell you up front exactly how much you're allowed to ask for, and what those credits can cover.
As Charlie told Redfin, seller and lender credits "can go towards things like origination, title fees, and third-party costs, but cannot be applied toward your down payment." That last part trips up a lot of buyers — credits reduce what you owe at the closing table, but they don't replace the cash you need for your down payment.
Where Most Buyers Leave Money on the Table
The Redfin guide does a great job laying out the practical playbook, and we'd add a few notes from what we see day to day at Sonic Loans:
- Compare Loan Estimates line by line. Two lenders can offer the same rate but charge wildly different origination, processing, and underwriting fees. Page 2 of your Loan Estimate is where the real differences live.
- Shop your title and settlement services. Buyers in Michigan are allowed to choose their own title company in most cases. At Sonic Title we publish our fees publicly so there's nothing to negotiate against — what you see is what you pay.
- Ask the seller before you assume the answer is no. In a balanced or buyer-leaning market, sellers will often cover several thousand dollars in closing costs to keep a deal moving. The worst answer you'll get is "no."
- Use lender credits when cash is tight. Slightly higher rate, lower closing costs. It's not free money, but for buyers who plan to refinance within a few years anyway, it can be a smart trade.
The One Sentence Worth Remembering
Charlie closed his contribution to the Redfin piece with a line we've put on the wall here more than once:
"You don't get what you don't ask for, so don't be shy to ask."
That's the whole game with closing costs. Most buyers never ask, assume the number on the page is the number they have to pay, and write the check. The buyers who do ask — politely, with a clear understanding of what their loan program allows — routinely save thousands.
Read the Full Article
You can read Charlie's full quotes alongside contributions from attorneys at Mancuso Carey, Misa Lazovic of Kredium, Saul Porter of Northfield Community LDC, and Emily Blackmer of Finally Home in the full Redfin guide here:
Can You Negotiate Closing Costs When Buying a Home | Redfin & Rocket
If you're getting ready to buy in Metro Detroit and want a Loan Estimate you can actually negotiate from, talk to our team or call (313) 488-4888. We'll walk you through every fee on the page — and tell you which ones we think are worth fighting for.