Wondering how much cash you need beyond the down payment to buy in Seattle? You are not alone. Closing costs can feel murky, and totals can change based on loan type, price, and timing. In this guide, you will learn what Seattle buyers typically pay, how each cost breaks down, who usually pays what in King County, and how to prepare your funds with confidence. Let’s dive in.
What closing costs cover in Seattle
Closing costs are the fees needed to finalize your purchase and loan. In Seattle and King County, they usually include:
- Lender fees and services
- Title insurance and escrow/closing services
- Prepaids and escrow reserves for taxes and insurance
- Inspections and any HOA-related charges
- Government recording and transfer-related fees
Each item serves a different purpose, and some are negotiable or vary by local custom.
How much to budget
Most Seattle buyers should plan on total closing costs of about 2% to 5% of the purchase price, not including your down payment. Your exact number depends on your loan, whether you pay points, how prepaids fall based on the calendar, and which party pays certain title or escrow items.
Here are simple ballparks for planning:
- $600,000 purchase: 2% = $12,000 | 3.5% = $21,000 | 5% = $30,000
- $850,000 purchase: 2% = $17,000 | 3.5% = $29,750 | 5% = $42,500
- $1,200,000 purchase: 2% = $24,000 | 3.5% = $42,000 | 5% = $60,000
Use these only as planning ranges. Your lender’s Loan Estimate and your final Closing Disclosure will show your actual numbers.
Who pays what in King County
Real estate customs are set by contract, and everything is negotiable. In practice around Seattle and King County:
- The seller customarily pays Washington’s Real Estate Excise Tax (REET).
- Sellers often pay for the owner’s title insurance policy, although this is a common convention rather than a rule.
- Buyers usually pay lender fees, appraisal, the lender’s title policy, their share of escrow/settlement and recording related to the mortgage, inspections, and prepaid items.
If you want seller-paid credits toward your costs, they must be negotiated in the offer and approved by your loan program.
Prepaids and escrow explained
Prepaids and escrow reserves are a large part of your cash to close. They are not lender fees. They set up your homeownership bills and your mortgage’s escrow account.
Property taxes
King County property taxes are prorated at closing. If your loan has an escrow account, your lender usually collects a few months of taxes upfront so they can pay the bill when due. The amount depends on your closing date and the county’s payment cycle.
Homeowners insurance
Lenders typically require proof of a paid first-year premium at closing. Many loans also collect a couple of months of insurance reserves for your escrow account.
Prepaid mortgage interest
Interest starts the day you close. You will pay daily interest from your closing date to the start of your first regular payment.
HOA dues and assessments
If the home or condo has an HOA, you may need to prepay dues or cover any transfer or move-in fees set by the association.
Lender fees you will see
Your lender’s costs cover underwriting and setting up the loan. Common items include:
- Origination, processing, and underwriting fees (flat amounts or a small percent of the loan)
- Appraisal fee
- Credit report, tax service, and flood certification
- Optional discount points to lower your interest rate
- Mortgage insurance premiums or private mortgage insurance if required by your program
Ask for a Loan Estimate within three business days of applying, then compare estimates across lenders so you understand trade-offs and credits.
Title and escrow charges in Washington
Title and escrow protect the transaction and your ownership:
- Lender’s title insurance protects your lender’s interest and is typically a buyer cost.
- Owner’s title insurance protects your ownership. In many Seattle-area deals, sellers pay this premium, but it is negotiable.
- Escrow or settlement fees pay the closing company for handling funds and documents. These fees are often split or assigned by the contract.
Your title or escrow company will show exact premiums and fees on your settlement statement.
Inspections and optional costs
Most buyers order inspections during the contingency period. Typical options include whole-home, sewer scope, pest, chimney, or roof inspections. These are usually a few hundred dollars each and are paid outside of closing.
Other situational costs can include HOA transfer fees, well or water tests, or negotiated repairs.
Government and recording fees
The county charges to record your deed and your mortgage documents. Buyers often pay the recording fee for the mortgage. Deed recording and some other items are allocated by your contract.
In Washington, the Real Estate Excise Tax (REET) is generally a seller responsibility in typical transactions.
Ways to lower your cash to close
You have options to manage or reduce your final cash requirement:
- Compare lenders and ask about rate-credit trade-offs. A lender credit can offset some fees in exchange for a slightly higher rate.
- Request seller concessions in your offer. Limits vary by loan program. For example, FHA commonly allows seller-paid closing costs up to 6% of the sale price. Conventional limits vary based on your down payment. Your lender will confirm current rules.
- Time your closing date. Closing near the end of the month can reduce prepaid interest.
- Review title and escrow allocations. In many local deals, sellers pay the owner’s title policy and sometimes a portion of escrow fees, but confirm in your contract.
- Avoid last-minute changes that trigger re-disclosure or re-underwriting, which can add time and cost.
Timeline: from estimate to keys
Here is a simple path to stay organized and on schedule.
At application
- Request a Loan Estimate within three business days of applying. Use it to compare fees, rate, and lender credits.
- Provide bank statements, pay stubs, tax returns, and proof of funds early. If you will use gift funds, ask for the gift letter format and documentation your lender needs.
Before closing
- Review your Closing Disclosure. Federal rules require your lender to deliver it at least three business days before you sign. Compare it to your Loan Estimate and ask about changes.
- Confirm your exact cash to close and how to deliver funds. Most closings require a wire or cashier’s check.
- Protect yourself from wire fraud. Call your escrow officer using a known, verified phone number to confirm wiring instructions. Do not rely only on email.
Closing day
- Bring a government-issued photo ID and any documents the title company requests.
- Send your final funds as instructed and confirm receipt.
- After signing, the title company records the deed and mortgage with the county. Once recorded, you get keys per your contract.
Avoid common mistakes
- Not shopping lenders for both rate and fees.
- Waiting to gather funds or making large, unexplained deposits. Your lender may need extra documentation, which can slow things down.
- Assuming the seller pays the same items on every deal. Seattle customs vary, and the contract controls.
- Ignoring wire-fraud risk. Always verify wiring instructions by phone with your known escrow contact.
If you want a clear read on your own numbers for a Seattle or North Seattle purchase, reach out to Chris Haynes for a quick closing cost review, a lender-introduction plan, and negotiation strategies that fit your budget.
FAQs
What are typical buyer closing costs in Seattle?
- Plan for about 2% to 5% of the purchase price, excluding your down payment. Your loan program, prepaids, and negotiated items drive the final number.
Who pays Washington’s Real Estate Excise Tax?
- In Washington, the seller generally pays REET in typical transactions, while buyers handle loan-related fees and their prepaids.
How are prepaids different from lender fees?
- Prepaids fund taxes, insurance, and daily interest that start your escrow account and first payments. Lender fees pay for creating and underwriting your loan.
When will I know my exact cash to close?
- Your Closing Disclosure is due at least three business days before closing. It shows your final cash to close so you can arrange a wire or cashier’s check.
Can a seller pay my closing costs?
- Yes, within loan-program limits. FHA commonly allows up to 6% of the sale price, and conventional programs set limits based on your down payment.
Do I need an owner’s title insurance policy?
- It is not required by lenders, but it protects your ownership. In many Seattle-area deals, sellers pay this premium, yet it is negotiable and set by contract.
What inspections should I budget for?
- Many buyers order a general home inspection and may add sewer scope, pest, chimney, or roof inspections. Costs are usually a few hundred dollars each.
How can I avoid wire-fraud scams at closing?
- Always confirm wire instructions by calling your escrow officer at a known, verified phone number. Do not rely on emailed instructions alone.
