What are closing costs?

Closing costs are all the one-time fees due at signing — typically 2-5% of the purchase price in Washington. They break into three buckets. Lender fees: origination, underwriting, processing, credit report, appraisal (about $700-$900). Third-party fees: title insurance (lender's policy is required, owner's policy is optional but I always recommend it), escrow/closing fees, recording fees, and any state/county transfer taxes (Washington uses REET — real estate excise tax — typically paid by the seller, not the buyer). Prepaids: property taxes and homeowners insurance held in your escrow account, plus prepaid interest from closing day to month-end. On a $500,000 home you're typically looking at $10,000-$18,000 total. The good news: closing costs are negotiable. We can ask the seller to credit you 2-3% (very common in slower markets), use lender credits to offset costs in exchange for a slightly higher rate, or roll some costs into the loan on a refinance. I'll give you a written estimate within 24 hours of starting your file so there are no surprises.