Closing costs are the fees due when your home purchase finalizes — separate from your down payment. In Washington, buyers typically pay about 2%–4% of the purchase price in closing costs: roughly $16,000–$32,000 on an $800,000 home. Here's exactly what those costs cover, who pays what, and how to budget — and trim — them.
Lender fees
If you're financing, your lender charges fees to originate the loan. These commonly include a loan origination fee, an appraisal (about $600–$900 in the Seattle area), a credit report fee, and sometimes discount points if you're buying down your rate. Because these vary widely, it pays to compare Loan Estimates from two or three lenders.
Escrow & title
Washington closings are handled by an escrow/title company that acts as a neutral third party. You'll see an escrow (settlement) fee, title insurance (a lender's policy, and often an owner's policy), and recording fees to register the deed. These typically total a few thousand dollars depending on price and provider.
Prepaids & reserves
Lenders collect certain costs in advance and set up an escrow account for ongoing bills:
- Prepaid interest from closing to your first payment.
- Homeowner's insurance — usually the first year paid up front.
- Property tax reserves — a few months held in escrow.
These aren't "fees" so much as bills you'd pay anyway, just front-loaded at closing.
Earnest money (a credit, not a cost)
Your earnest money deposit (typically 1%–3%, made when your offer is accepted) isn't an extra cost — it's applied toward your down payment or closing costs at the table. Budget for it as cash you'll need early, then see it credited back on your final statement.
What buyers do NOT pay in Washington
One piece of good news: Washington's real estate excise tax (REET) is customarily the seller's cost, not the buyer's. And since the 2024 changes to how agents are paid, buyer-agent compensation is negotiated directly — see who pays the buyer's agent in Washington.
Read your Closing Disclosure
At least three business days before closing, your lender must provide a Closing Disclosure itemizing every cost. Compare it line-by-line to your original Loan Estimate and ask about anything that changed. The CFPB's Closing Disclosure explainer is an excellent neutral reference, and their Owning a Home tools help you budget.
How to lower your closing costs
- Negotiate a seller credit toward your closing costs — common in balanced or slower markets.
- Shop lenders and title/escrow providers — fees genuinely differ.
- Use a flat-fee buyer's agent. Instead of a ~2.5% commission ($32,500 on a $1.3M home), a flat $2,999 keeps tens of thousands in your pocket — money that can cover your closing costs outright. Compare in flat fee vs. a traditional buyer's agent.
New to the process? Start with the first-time buyer guide, or see local market notes for Bellevue, Redmond, and Kirkland.
General information, not legal or financial advice. Costs, taxes, and customs vary by transaction and change over time — confirm current figures with your lender, escrow officer, and broker. Shi Hao Liu is a licensed WA real estate broker (License #26003789) with Kelly Right Real Estate. Verify any WA broker at the WA Department of Licensing.