Closing costs are the fees and prepaid expenses due at the end of a real estate transaction. They are separate from your down payment, and they can surprise first-time buyers if they are not discussed early.
Your lender should provide a loan estimate that helps you understand your expected costs before you are deep into the process.
What Do Buyer Closing Costs Include?
Buyer closing costs may include:
- Loan origination or lender fees
- Appraisal fee
- Credit report fee
- Title-related fees
- Escrow fees
- Recording fees
- Prepaid property taxes
- Prepaid homeowners insurance
- Prepaid interest
- Mortgage insurance, if applicable
- Discount points, if you choose to buy down your rate
- HOA-related fees, if applicable
The exact amount depends on the purchase price, loan type, lender, closing date, taxes, insurance, and negotiated credits.
Are Closing Costs the Same as Cash to Close?
Not exactly.
“Cash to close” usually means the total amount you need to bring to closing. It includes your down payment plus closing costs, minus any credits or deposits already paid.
For example, your earnest money deposit may be credited toward your total amount due at closing.
Can the Seller Pay Some of My Closing Costs?
Sometimes, yes.
A buyer may ask the seller for a credit toward allowable closing costs. Whether that is realistic depends on the market, the property, the seller’s motivation, loan rules, and the strength of the rest of your offer.
In a competitive situation, asking for a large seller credit may make your offer less attractive. On a home that has been sitting, a seller credit may be more realistic.
What About Real Estate Excise Tax?
In Washington, real estate excise tax is usually paid by the seller. However, unpaid excise tax can create a lien issue, so it is still part of the overall closing process handled through escrow.
As a buyer, your main focus is usually your lender fees, title and escrow charges, prepaid expenses, and any buyer-side costs required by your contract or loan.
Why the Closing Date Matters
Your closing date can affect prepaid interest, tax prorations, and the amount needed at closing. Two buyers purchasing the same home at the same price may have different closing costs depending on when they close and how their loan is structured.
This is why your lender’s estimate matters more than a generic online calculator.
How to Prepare
Before writing offers, ask your lender for an estimate that includes:
- Down payment
- Closing costs
- Prepaids
- Estimated cash to close
- Monthly payment
- Taxes and insurance
- Any mortgage insurance
- Any assumptions used in the estimate
Then review that number with your agent so your offer strategy matches your actual comfort level.
The Bottom Line
Closing costs are normal, but they should not be mysterious.
As a Seattle buyer, you should know your estimated cash to close before you fall in love with a home. The clearer the numbers are upfront, the easier it is to make confident decisions when the right property appears.
