Closing costs are the fees beyond the purchase price, due on the day the sale completes. Buyers are frequently surprised by them, which is avoidable — your lender must give you estimates in writing well before closing.
What buyers typically pay
Lender charges. Origination, underwriting and processing fees, plus any discount points you chose to buy the rate down.
Appraisal. The lender’s independent valuation. Often paid up front rather than at closing.
Credit report and verification fees. Small, but they add up.
Title charges. The lender’s title policy, and possibly a share of escrow fees.
Recording fees. Paid to the county to record the deed and the deed of trust.
Prepaid interest. Interest from your closing date to the end of that month.
Escrow reserves. If you will pay taxes and insurance through the lender, they collect several months up front to seed the account.
First year’s homeowner’s insurance. Usually paid in full at or before closing.
What sellers typically pay
Real estate excise tax. Washington charges an excise tax on the sale of real property. The seller is the one normally responsible for paying it — though if it goes unpaid it can become the buyer’s problem, which is one more reason to close through escrow properly.
The state portion is graduated, meaning higher-priced sales pay a higher rate on the portion above each threshold, and local jurisdictions add their own amount on top. The rates and thresholds are adjusted periodically, so check the Washington Department of Revenue for current figures rather than relying on a number you read somewhere.
Their existing mortgage payoff. Including any prepayment penalty.
Outstanding property taxes up to the closing date, prorated.
Real estate commissions, per their listing agreement.
The owner’s title policy, frequently though not universally.
What is negotiable
More than people assume. Who pays escrow fees, who pays the owner’s title policy, and whether the seller contributes toward your closing costs are all terms of the deal, not fixed rules.
Seller-paid closing costs are worth understanding properly. A seller contributing toward your costs can meaningfully reduce the cash you need on the day — though it typically shows up in a slightly higher price, and lenders cap how much a seller may contribute depending on your loan type and down payment. It is a useful tool when cash to close is your binding constraint rather than the price.
The documents that tell you the truth
Within three business days of your application, your lender must provide a Loan Estimate — a standard form, which means you can lay two lenders’ versions side by side and genuinely compare them.
At least three business days before closing you receive the Closing Disclosure, showing the final figures. Compare it against the Loan Estimate. Ask about anything that moved. Some items are allowed to change, some are not, and the three-day window exists precisely so you have time to question them.
Bring us anything on either document that looks wrong. We have seen a lot of these.