Closing Costs in Washington: Complete Breakdown for Seattle Buyers

Complete breakdown of Washington closing costs: understand every fee, calculate your total cash needed, and learn proven strategies to reduce expenses by thousands.

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Your lender pre-approves you for $900,000. You have $90,000 saved for 10% down. You're ready to buy, right?

Not quite. You forgot about closing costs. In Seattle, closing costs typically run $15,000-25,000 depending on purchase price. That $90,000 down payment leaves you with $65,000-75,000 after closing costs - not enough for reserves.

In this article, you'll learn the complete breakdown of closing costs in Washington state, who pays what in Seattle's market, real examples at different price points, how to estimate your costs accurately, and strategies to reduce closing costs by thousands.

Table of Contents

Total Closing Costs Overview

Typical Range in Seattle

Buyer closing costs: 2-5% of purchase price (typically 2-3% for most buyers)

Examples:

  • $600,000 home: $12,000-18,000
  • $825,000 home: $16,500-24,750
  • $1,200,000 home: $24,000-36,000

Why the range:

  • Loan type (conventional, FHA, VA, jumbo)
  • Down payment amount
  • Lender fees vary significantly
  • Title insurance varies by price
  • Property taxes vary by county
  • Prepaid items vary by closing date

What's Included

Lender fees (20-25%):

  • Origination fee
  • Underwriting fee
  • Processing fee
  • Application fee

Title and escrow (25-30%):

  • Title insurance (owner's policy)
  • Escrow fee
  • Recording fees
  • Notary fees

Prepaid items (30-40%):

  • Property taxes (2-6 months)
  • Homeowners insurance (1 year)
  • Prepaid interest
  • HOA fees (if applicable)

Third-party services (15-20%):

  • Appraisal
  • Home inspection
  • Sewer scope
  • Credit report

Government fees (5-10%):

  • Recording fees
  • Transfer taxes (seller pays in WA, but affects negotiation)

Detailed Cost Breakdown

Lender Fees

Origination fee: $1,000-3,500

  • What it is: Fee for processing your loan
  • Typical: 0.5-1% of loan amount
  • Negotiable: Sometimes
  • Can be: Waived with higher rate

Example:

  • $700,000 loan
  • 0.5% origination: $3,500
  • 1% origination: $7,000

Underwriting fee: $500-1,000

  • What it is: Fee for reviewing and approving loan
  • Typical: $500-800
  • Negotiable: Rarely
  • Sometimes: Included in origination fee

Processing fee: $400-800

  • What it is: Fee for handling paperwork
  • Typical: $400-600
  • Negotiable: Sometimes
  • Sometimes: Included in origination fee

Application fee: $0-500

  • What it is: Fee to apply for loan
  • Typical: $0-300
  • Negotiable: Often waived
  • Red flag: If over $500

Credit report: $50-100

  • What it is: Cost to pull credit from three bureaus
  • Typical: $50-75
  • Negotiable: No
  • Standard: Industry cost

Flood certification: $15-25

  • What it is: Determines if property in flood zone
  • Typical: $15-20
  • Negotiable: No
  • Required: By lender

Tax service fee: $75-100

  • What it is: Monitors property tax payments
  • Typical: $75-90
  • Negotiable: No
  • Required: By lender

Total lender fees: $2,000-6,000

  • Credit unions: $1,000-2,000
  • Online lenders: $1,500-3,000
  • Big banks: $3,000-5,000
  • Brokers: $2,000-4,000 (plus broker fee if applicable)

Title and Escrow Fees

Title insurance (owner's policy): $1,500-3,500

  • What it is: Protects you from title defects
  • Cost: Based on purchase price
  • Who pays: Seller in Washington (but negotiable)
  • One-time: Premium paid at closing

King County examples:

  • $600,000 home: ~$1,800
  • $825,000 home: ~$2,200
  • $1,200,000 home: ~$3,000

Lender's title insurance: $500-1,000

  • What it is: Protects lender (not you)
  • Cost: Based on loan amount
  • Who pays: Buyer
  • Required: By lender

Escrow fee: $1,000-2,000

  • What it is: Fee for escrow company services
  • Cost: Based on purchase price
  • Who pays: Split 50/50 in Washington
  • Typical: $500-1,000 per party

King County examples:

  • $600,000 home: $1,200 total ($600 buyer, $600 seller)
  • $825,000 home: $1,500 total ($750 buyer, $750 seller)
  • $1,200,000 home: $2,000 total ($1,000 buyer, $1,000 seller)

Recording fees: $200-400

  • What it is: County fee to record deed
  • Cost: Set by county
  • Who pays: Buyer
  • King County: ~$250-350

Notary fees: $100-200

  • What it is: Fee for notarizing documents
  • Cost: Per signature
  • Who pays: Buyer
  • Sometimes: Included in escrow fee

Total title/escrow: $3,000-7,000

Prepaid Items

Property taxes: $1,500-6,000

  • What it is: Prepaid property taxes
  • Amount: 2-6 months depending on closing date
  • Who pays: Buyer
  • Varies: By county and closing date

How it works:

  • Property taxes due April 30 and October 31
  • Lender collects in advance
  • Held in escrow account
  • Lender pays when due

Example (closing October 1):

  • Annual taxes: $8,250
  • Next due: October 31 (1 month)
  • Lender collects: 3 months ($2,063)
  • Why 3 months: 1 month due + 2 month cushion

Example (closing March 1):

  • Annual taxes: $8,250
  • Next due: April 30 (2 months)
  • Lender collects: 4 months ($2,750)
  • Why 4 months: 2 months due + 2 month cushion

Homeowners insurance: $1,500-2,500

  • What it is: First year premium
  • Amount: Full year paid at closing
  • Who pays: Buyer
  • Required: By lender

King County typical:

  • Single-family home: $1,500-2,000/year
  • Townhome: $1,200-1,800/year
  • Condo (HO-6): $400-800/year

Prepaid interest: $500-2,000

  • What it is: Interest from closing to end of month
  • Amount: Depends on closing date
  • Who pays: Buyer
  • Varies: By closing date

How it works:

  • Interest accrues daily
  • First payment due 30 days after closing month ends
  • Prepay interest for partial month

Example (closing October 15):

  • Loan: $700,000
  • Rate: 6.5%
  • Daily interest: $125
  • Days until Oct 31: 16 days
  • Prepaid interest: $2,000

Example (closing October 30):

  • Loan: $700,000
  • Rate: 6.5%
  • Daily interest: $125
  • Days until Oct 31: 1 day
  • Prepaid interest: $125

Pro Tip: Close at end of month to minimize prepaid interest.

HOA fees: $0-1,500

  • What it is: Prepaid HOA fees
  • Amount: 1-3 months
  • Who pays: Buyer
  • Only if: Buying condo/townhome

Total prepaid items: $3,500-10,000

Third-Party Services

Appraisal: $600-1,200

  • What it is: Professional property valuation
  • Cost: Based on property type and price
  • Who pays: Buyer
  • When paid: Upfront (before closing)

Seattle typical:

  • Single-family: $600-800
  • Townhome: $600-800
  • Condo: $500-700
  • Jumbo (over $1M): $800-1,200

Home inspection: $500-800

  • What it is: Professional property inspection
  • Cost: Based on property size
  • Who pays: Buyer
  • When paid: Upfront (before closing)

Seattle typical:

  • Under 2,000 sqft: $500-600
  • 2,000-3,000 sqft: $600-700
  • Over 3,000 sqft: $700-900

Sewer scope: $300-500

  • What it is: Camera inspection of sewer line
  • Cost: Standard service
  • Who pays: Buyer
  • Highly recommended: In Seattle (old infrastructure)

Radon test: $150-250

  • What it is: Test for radon gas
  • Cost: Standard service
  • Who pays: Buyer
  • Less common: In Seattle (low radon area)

Survey: $400-800

  • What it is: Property boundary survey
  • Cost: Based on lot size
  • Who pays: Buyer (if required)
  • Usually not required: In Washington

Total third-party: $1,500-3,500

Government Fees

Recording fees: $200-400

  • What it is: County fee to record documents
  • Cost: Set by county
  • Who pays: Buyer
  • King County: ~$250-350

Transfer tax: $0 (seller pays in WA)

  • What it is: Tax on property transfer
  • Rate: 1.28-1.78% in King County
  • Who pays: Seller in Washington
  • Affects: Negotiation (seller factors into price)

Example:

  • $825,000 home
  • Transfer tax: ~1.6% = $13,200
  • Seller pays: $13,200
  • Buyer pays: $0

Total government fees: $200-400

Real Examples by Price Point

Example 1: $600,000 Home (10% Down)

Purchase price: $600,000
Down payment: $60,000 (10%)
Loan amount: $540,000
Loan type: Conventional

Lender fees:

  • Origination (0.5%): $2,700
  • Underwriting: $600
  • Processing: $500
  • Credit report: $75
  • Other fees: $200
  • Subtotal: $4,075

Title and escrow:

  • Lender's title insurance: $700
  • Escrow fee (buyer's half): $600
  • Recording fees: $250
  • Notary: $150
  • Subtotal: $1,700

Prepaid items:

  • Property taxes (3 months): $1,500
  • Insurance (1 year): $1,500
  • Prepaid interest: $1,000
  • Subtotal: $4,000

Third-party services:

  • Appraisal: $650
  • Home inspection: $550
  • Sewer scope: $400
  • Subtotal: $1,600

Government fees:

  • Recording: $250
  • Subtotal: $250

Total closing costs: $11,625
Percentage of price: 1.94%

Total cash needed:

  • Down payment: $60,000
  • Closing costs: $11,625
  • Reserves (6 months): $30,000
  • Total: $101,625

Example 2: $825,000 Home (10% Down)

Purchase price: $825,000
Down payment: $82,500 (10%)
Loan amount: $742,500
Loan type: Conventional

Lender fees:

  • Origination (0.5%): $3,713
  • Underwriting: $700
  • Processing: $600
  • Credit report: $75
  • Other fees: $250
  • Subtotal: $5,338

Title and escrow:

  • Lender's title insurance: $900
  • Escrow fee (buyer's half): $750
  • Recording fees: $300
  • Notary: $150
  • Subtotal: $2,100

Prepaid items:

  • Property taxes (3 months): $2,063
  • Insurance (1 year): $1,800
  • Prepaid interest: $1,500
  • Subtotal: $5,363

Third-party services:

  • Appraisal: $700
  • Home inspection: $600
  • Sewer scope: $400
  • Subtotal: $1,700

Government fees:

  • Recording: $300
  • Subtotal: $300

Total closing costs: $14,801
Percentage of price: 1.79%

Total cash needed:

  • Down payment: $82,500
  • Closing costs: $14,801
  • Reserves (6 months): $36,000
  • Total: $133,301

Example 3: $1,200,000 Home (20% Down)

Purchase price: $1,200,000
Down payment: $240,000 (20%)
Loan amount: $960,000
Loan type: Jumbo

Lender fees:

  • Origination (0.5%): $4,800
  • Underwriting: $1,000
  • Processing: $800
  • Credit report: $100
  • Other fees: $300
  • Subtotal: $7,000

Title and escrow:

  • Lender's title insurance: $1,200
  • Escrow fee (buyer's half): $1,000
  • Recording fees: $350
  • Notary: $200
  • Subtotal: $2,750

Prepaid items:

  • Property taxes (3 months): $3,000
  • Insurance (1 year): $2,200
  • Prepaid interest: $2,000
  • Subtotal: $7,200

Third-party services:

  • Appraisal: $1,000
  • Home inspection: $800
  • Sewer scope: $500
  • Subtotal: $2,300

Government fees:

  • Recording: $350
  • Subtotal: $350

Total closing costs: $19,600
Percentage of price: 1.63%

Total cash needed:

  • Down payment: $240,000
  • Closing costs: $19,600
  • Reserves (6 months): $48,000
  • Total: $307,600

Who Pays What in Washington

Standard Practice

Buyer typically pays:

  • Lender fees
  • Lender's title insurance
  • Appraisal
  • Home inspection
  • Sewer scope
  • Credit report
  • Half of escrow fee
  • Recording fees
  • Prepaid items (taxes, insurance, interest)

Seller typically pays:

  • Owner's title insurance
  • Excise tax (1.28-1.78%)
  • Half of escrow fee
  • Real estate commissions (5-6%)
  • Any agreed-upon repairs or credits

Everything Is Negotiable

In buyer's market:

  • Seller may pay some buyer closing costs
  • Seller may pay for repairs
  • Seller may offer credits
  • Buyer has leverage

In seller's market:

  • Buyer pays all standard costs
  • Buyer may waive inspection
  • Buyer may pay some seller costs
  • Seller has leverage

In balanced market:

  • Standard split applies
  • Some negotiation possible
  • Depends on specific situation

Strategies to Reduce Closing Costs

Strategy 1: Shop Lenders

Lender fees vary significantly:

  • Credit union: $1,000-2,000
  • Big bank: $3,000-5,000
  • Difference: $1,000-3,000

Action:

  • Get Loan Estimates from 3-5 lenders
  • Compare total lender fees
  • Choose lowest cost

Savings: $1,000-3,000

Strategy 2: Lender Credits

How it works:

  • Accept slightly higher rate
  • Lender gives credit toward closing costs
  • Trade-off: Higher monthly payment

Example:

  • Standard: 6.5% rate, $0 credit
  • With credit: 6.75% rate, $7,000 credit
  • Monthly payment increase: $115
  • Closing cost savings: $7,000
  • Break-even: 61 months

When it makes sense:

  • Cash is very tight
  • Planning to refinance within 3-5 years
  • Rates expected to drop

Savings: $3,000-10,000 upfront

Strategy 3: Seller Credits

How it works:

  • Negotiate seller to pay some closing costs
  • Typically 1-3% of purchase price
  • Reduces your cash needed

Example:

  • Purchase price: $825,000
  • Seller credit: 2% = $16,500
  • Your closing costs: $14,801
  • Net: Seller covers all closing costs

When it works:

  • Buyer's market
  • Property needs repairs
  • Seller motivated
  • Property overpriced

Limitations:

  • Can't exceed actual closing costs
  • Can't be used for down payment
  • Lender limits (typically 3-6% depending on loan type)

Savings: $5,000-20,000

Strategy 4: Close at Month End

How it works:

  • Prepaid interest is per-diem
  • Closing on day 30 = 1 day interest
  • Closing on day 1 = 30 days interest

Example:

  • Loan: $700,000 at 6.5%
  • Daily interest: $125
  • Close Oct 1: $3,750 prepaid interest
  • Close Oct 30: $125 prepaid interest
  • Savings: $3,625

Trade-off:

  • First payment comes sooner
  • Less time to move
  • Closing dates can be hard to control

Savings: $500-3,000

Strategy 5: Shop Title and Escrow

How it works:

  • Title and escrow fees vary
  • You can choose your own (for services you pay for)
  • Compare 2-3 companies

Typical savings:

  • Escrow fees: $100-300
  • Title insurance: $100-500
  • Total: $200-800

Seattle companies:

  • Chicago Title
  • Fidelity National Title
  • First American Title
  • Old Republic Title

Action:

  • Ask for quotes from 2-3 companies
  • Compare total costs
  • Choose lowest

Savings: $200-800

Strategy 6: Bundle Services

How it works:

  • Some companies offer package deals
  • Home inspection + sewer scope
  • Title + escrow from same company

Typical savings:

  • Inspection bundle: $50-100
  • Title/escrow bundle: $100-200

Savings: $150-300

Summary

Key takeaways:

  • Closing costs: 2-3% of purchase price in Seattle ($12,000-36,000 typical)
  • Lender fees vary most - shop 3-5 lenders to save $1,000-3,000
  • Prepaid items: 30-40% of closing costs (property taxes, insurance, interest)
  • Close at month end to minimize prepaid interest ($500-3,000 savings)
  • Seller credits can cover closing costs in buyer's market
  • Lender credits reduce upfront costs but increase rate
  • Total cash needed = down payment + closing costs + reserves
  • Budget 2.5-3% of purchase price for closing costs when planning

Next steps:

  1. Calculate your estimated closing costs using examples in this article
  2. Add to down payment to determine total cash needed
  3. Add reserves (6 months expenses) to total
  4. Compare to your savings - do you have enough?
  5. Get Loan Estimate from lender for accurate costs
  6. Shop lenders to minimize lender fees
  7. Plan closing date for end of month if possible

This article provides general information about closing costs in Washington and should not be considered financial advice. Actual costs vary by lender, property, and transaction. Request a Loan Estimate from your lender for accurate costs specific to your purchase.

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