Wondering how much cash you need to close on a home in Lynnwood? You are not alone. Closing costs can feel like a maze, especially when you are balancing a down payment, inspections, and moving plans. This guide breaks down what buyers in Lynnwood typically pay, how Washington rules affect your bottom line, and simple ways to reduce what you bring to the table. Let’s dive in.
How much to budget
Plan for about 5% - 7% of the purchase price in buyer-paid closing costs, not including your down payment. On a $500,000 home, that is roughly $25,000. Your actual amount depends on your loan program, lender, and the specifics of your offer. However there are also programs available to help you with these costs.
If you are paying cash, you will likely avoid lender fees, but you will still see title and escrow charges, recording fees, prepaid taxes and insurance, and inspection costs.
In Washington, buyers are responsible for to pay their own broker, unless the seller pays their broker for them. We will always ask the seller to pay our compensation and it becomes a point of negotiation with any offer you submit. Sellers always pay the state’s real estate excise tax (REET).
Common buyer closing costs
Here are the most common line items you will see on your Closing Disclosure or settlement statement.
- Loan origination and lender fees. This may include an origination fee, underwriting, processing, credit report, and optional discount points. Buyers usually pay these.
- Appraisal fee. Your lender orders the appraisal; buyers typically pay it. The cost varies by property type and complexity.
- Title insurance and title services. Lenders require a lender’s title policy. An owner’s policy is optional but recommended for buyer protection. In the Puget Sound area, buyers commonly pay both policies, but this is negotiable and varies by contract.
- Escrow or settlement fee. The escrow company coordinates funds, documents, and recording. This fee is often split between buyer and seller, but the split is negotiable.
- Recording and county fees. Snohomish County charges to record the deed and deed of trust. Buyers usually pay to record the mortgage documents; deed recording can be negotiated.
- Prepaid taxes and insurance. Expect prorated property taxes, plus a first-year homeowner’s insurance premium and initial escrow deposits if your lender escrows taxes and insurance.
- Mortgage insurance or funding fee. If you put less than 20% down on a conventional loan, you may pay private mortgage insurance (PMI) monthly or upfront. VA loans include a funding fee paid by the borrower unless a specific exemption applies.
- HOA and condo costs. You may see prorated dues, move-in/move-out fees, and condo document or transfer fees. Who pays which fee depends on local practice and your contract.
- Inspections. Buyers usually pay for the home inspection and any specialized inspections, such as pest, septic, or well.
- Prepaid interest. This covers interest from closing to the start of your first mortgage payment and depends on your rate and closing date.
- Miscellaneous charges. Courier, wire, flood certification, notary, and other administrative fees may appear.
For the most accurate figures, request a Loan Estimate from your lender and a fee worksheet or an estimated statement from your real estate agent.
Who pays what in Washington
Washington follows some common conventions that affect your total at closing:
- REET. The state’s real estate excise tax is generally a seller responsibility. A purchase contract could reassign it, but that is not typical for buyers.
- Commissions. Buyers are responsible for their own broker fees, unless the seller pays on their behalf, which is very common in today's market. Regardless, compensation is a point of negotiation in every contract. Sellers typically pay the listing and any negotiated buyer-broker commissions as part of their closing costs.
- Escrow fees. These are usually split 50/50 between the seller and the buyer.
- Title insurance. Lenders require a lender’s policy which is generally paid by the buyer. The Seller usually pays the owner's policy.
- Recording fees. Buyers commonly pay to record their mortgage documents. Deed recording is generally paid by the Seller.
Your settlement statement will outline the final allocation of every fee.
What to expect in the process
- Closers in Washington. Title and escrow companies typically coordinate Washington closings. They handle payoffs, documents, and recording with the county.
- Required disclosures. Your lender must provide a Loan Estimate early in the process and a Closing Disclosure at least three business days before you sign your loan. Review the Closing Disclosure carefully and ask questions right away.
- Recording and keys. After you sign, the title or escrow company funds the loan and records the deed with Snohomish County. The purchase contract sets when you take possession.
Local taxes, fees, and utilities
- Property taxes. Snohomish County administers property taxes. At closing, taxes are prorated based on the closing date. If your loan includes an escrow account, you will also fund initial deposits toward upcoming tax payments.
- County recording. Snohomish County sets recording fees for deeds and deeds of trust. Your escrow company will include the correct county charges on your settlement statement.
- City utilities and impact fees. For new construction or certain projects, the City of Lynnwood may charge utility connection or impact fees. Ask early if you are buying new construction or a recently developed property.
Quick checklist: top buyer costs
Use this short checklist to plan and compare estimates:
- Lender fees (origination, underwriting, credit report)
- Appraisal
- Title insurance and escrow
- Recording fees
- Prepaid taxes, homeowner’s insurance, and prepaid interest
- Inspections and applicable HOA/condo fees
Ways to lower closing costs
You can often reduce or manage what you bring to closing with a few smart steps:
- Ask for seller credits. In some market conditions, sellers may agree to contribute toward your closing costs. Your agent can advise on a strategy that fits the property and market.
- Consider lender credits or a rate buydown. Some lenders offer a credit toward closing costs in exchange for a slightly higher rate. Compare Loan Estimates to see which mix fits your timeline and budget.
- Shop insurance and escrow/title fees. Homeowner’s insurance premiums vary. Title premiums are regulated in Washington, but escrow and ancillary fees can differ. Ask for quotes.
- Finance allowable costs. Depending on the loan program, you may be able to roll certain costs into the loan amount, subject to loan-to-value limits and program rules.
- Explore down payment assistance. The Washington State Housing Finance Commission and local nonprofits offer programs for eligible buyers. These can reduce upfront cash needs for qualified applicants.
What to do next
- Get at least two Loan Estimates. Compare interest rates, points, and lender fees line by line.
- Ask title/escrow for a fee worksheet. Request a sample settlement statement for your target price range and the expected buyer/seller fee split.
- Review your Closing Disclosure early. You must receive it at least three business days before closing. Read every line and flag questions right away.
- Confirm county and city items. If you have questions about taxes, recording, or utility connection fees, ask your escrow officer which offices to contact for the most current schedules.
Buying a home should feel straightforward once you see each cost in context. If you want tailored numbers for a specific property or loan type, our team is ready to help you compare estimates and negotiate smartly. Reach out to our preferred lender, Jeff Miltenberger, at NFM Lending for a clear, local closing-cost game plan.
FAQs
What are typical closing costs for a $500,000 home in Snohomish County?
- Plan for roughly 5% - 7%, depending on your loan, lender fees, title/escrow charges, and prepaid items.
Do buyers pay Washington’s REET tax?
- No. Washington’s real estate excise tax is typically paid by the seller unless your purchase contract assigns it to the buyer.
When will I receive my Closing Disclosure before closing?
- For most mortgages, lenders must deliver the Closing Disclosure at least three business days before you sign, giving you time to review and ask questions.
How are property taxes handled at closing in Snohomish County?
- Taxes are prorated between buyer and seller based on the closing date. If your lender escrows taxes, you will also fund initial deposits at closing.
Can I roll closing costs into my mortgage in Washington?
- Sometimes. Certain costs can be financed if your loan program and loan-to-value allow it. Your lender can confirm what is eligible.
Who handles closings in Snohomish County?
- Title and escrow companies typically coordinate the closing, prepare settlement figures, and record documents with Snohomish County after funding.
