It depends on the bank. You can ask to reduce the closing costs and sometimes they will agree and sometimes they will not agree. It is like any other seller—just ask unless they say no concessions allowed. Keep in mind that when you are asking for concessions, you are making your offer less competitive because that tells the seller you are short on cash and may not be as strong of an offer. When a seller is dealing with multiple offers, you want to appear strong in your offer against the other offers. If you absolutely need it then ask for it, but if you don't need it and just want to see if they will pay and you're in a multiple offer situation, it probably is not a good idea to ask for reduced closing costs. If you are an investor, you might be able to deduct these costs but check with an accountant first as tax laws change frequently. If you can deduct the closing costs, then it is best not to ask for them.