How much cash should you set aside for closing day in Spokane? If you are budgeting for a home, this is one of the biggest unknowns. You want to plan well, avoid surprises, and keep more money in your pocket. In this guide, you will learn what buyer closing costs cover, realistic ranges in dollars and percentages, local Spokane customs, and practical ways to reduce what you pay. Let’s dive in.
Start with a simple rule of thumb
Plan on about 2 to 5% of the purchase price for buyer closing costs. That aligns with national guidance for Washington buyers as well. The exact amount depends on your loan type, rate choices, and which third parties you use. For clear definitions and examples, review the Consumer Financial Protection Bureau’s overview of typical closing costs.
- $300,000 purchase: about $6,000 to $15,000
- $400,000 purchase: about $8,000 to $20,000
- $600,000 purchase: about $12,000 to $30,000
What closing costs cover
Most buyer costs fall into three buckets. A few smaller items sit outside these, and we will note them below.
Lender fees and loan-related charges
These are charged by your lender and vary by loan product.
- Origination or processing fee: often 0.25% to 1% of the loan amount or a flat fee.
- Discount points: optional fee to lower your interest rate. One point equals 1% of the loan amount.
- Appraisal: typically $400 to $900 depending on size and complexity.
- Credit report: usually $25 to $60.
- Underwriting or admin fees: commonly $300 to $1,200.
- PMI initial premium: may apply with lower down payments, sometimes due at closing or built into monthly payments.
Title, escrow, and county fees
These ensure a clear title transfer and proper recording.
- Lender’s title insurance: usually paid by the buyer.
- Owner’s title insurance: who pays varies by local custom in Washington. More on Spokane norms below.
- Escrow or settlement fee: charged by the escrow company that coordinates closing and funds.
- Recording and document fees: the county charges modest per-document amounts to record the deed and deed of trust. Check the Spokane County Auditor’s Recording page for current information.
Typical ranges for this group include lender and owner title policies that can run a few hundred to over a thousand dollars each based on price and loan size, an escrow fee in the $400 to $1,500 range, and recording fees in the tens to low hundreds.
Prepaids and reserves
These are not fees for services. They are upfront costs for future bills.
- Homeowners insurance: often the first year’s premium, commonly $600 to $2,000+.
- Property tax proration: you pay your share from closing through the next due date. Amounts vary by home and tax rate.
- Initial escrow deposits: your lender may collect 1 to 3 months of taxes and insurance to seed your escrow account.
- Prepaid interest: covers daily interest from your closing date to your first payment.
Inspections and HOA items
These are usually paid before closing and are often elective but highly recommended.
- Home inspection, optional pest or specialty inspections: typically $300 to $800+ combined depending on scope.
- HOA fees: if the property is in an HOA, expect prorated dues and possible transfer or estoppel fees. These are sometimes paid by the seller, but it is negotiable.
Spokane and Washington specifics
Local customs and state rules can shape who pays what.
Who pays title insurance in Washington
In many Washington transactions, the seller often pays for the owner’s title policy while the buyer pays the lender’s policy. This is a common practice but is negotiable and can vary by property. Confirm the allocation with your Spokane escrow officer or your agent early in the process.
Real Estate Excise Tax (REET)
Washington’s Real Estate Excise Tax applies to property sales and is generally paid by the seller, not the buyer. For current rules and rates, see the Washington State Department of Revenue’s page on Real Estate Excise Tax.
Recording fees and county charges
Spokane County charges per-document recording fees, not a percentage of the sale price. Fees are modest and depend on the number and type of documents recorded. You can review county recording information with the Spokane County Auditor’s Recording office.
Property tax proration and timing
You will typically reimburse the seller for your share of property taxes from closing through the next due date, or vice versa depending on timing. For budgeting, review recent tax statements or look up the parcel through the Spokane County Assessor’s Property Information portal.
Assistance programs that reduce cash to close
The Washington State Housing Finance Commission offers first mortgage programs and down payment assistance that can lower upfront cash needs. Explore current options on the WSHFC homebuyer programs page.
How much to budget: Spokane examples
The percentage rule keeps planning simple. Here are quick examples that mirror many Spokane-area purchases.
- $350,000 home with 5% down: plan for about $7,000 to $17,500 in closing costs.
- $450,000 home with 10% down: plan for about $9,000 to $22,500.
- $600,000 home: plan for about $12,000 to $30,000.
If you buy discount points to lower your rate, your costs will trend toward the higher end. If you receive a lender credit or a seller credit, you can land near the lower end.
When each cost is due
Timing matters for cash flow. Here is what to expect.
- Earnest money: due shortly after mutual acceptance. It is credited to your down payment or closing costs.
- Inspections: paid when the inspection occurs during your contingency period.
- Appraisal: often collected during loan processing or at closing, depending on lender policy.
- Final cash to close: shown on your Closing Disclosure, which the lender must provide at least three business days before signing. Learn what is included on the Closing Disclosure.
- Initial escrow deposits: collected at closing if your lender will manage an escrow account for taxes and insurance.
Tip: request and compare a written Loan Estimate from each lender you consider. The CFPB explains the Loan Estimate and how to use it.
Smart ways to lower your closing costs
You have options. These strategies are common and effective.
- Negotiate seller concessions. Ask the seller to cover a portion of your closing costs or specific fees. Loan program limits apply.
- Ask for a lender credit. You can choose a slightly higher interest rate in exchange for a credit that reduces cash to close.
- Use down payment and closing cost assistance. Review WSHFC programs and check for local grants or employer assistance.
- Shop and compare. Get at least 2 to 3 Loan Estimates from lenders. Ask about lender fee waivers. Title and escrow fees can also vary.
- Reduce optional extras. Skip rush or add-on services you do not need. Ask which third-party services are required by your lender.
- Use credits for repairs. If the inspection finds issues, request a seller credit to offset closing costs, subject to loan rules.
Spokane buyer checklist for a smooth closing
Use this quick list to stay organized.
- Get written Loan Estimates from at least two lenders and compare line items.
- Confirm who pays which title policies with your Spokane escrow officer.
- Review tax history and the parcel record on the Assessor’s Property Information portal.
- Read your Closing Disclosure carefully at least three business days before signing. Use the CFPB guide to the Closing Disclosure.
- Verify wire instructions by phone using a known number to avoid fraud.
- If applicable, contact the HOA early to learn about transfer fees and dues.
- Explore the WSHFC homebuyer programs page to see if you qualify for assistance.
Buying in Spokane should feel clear and manageable. If you want a personalized plan that breaks down your likely out-of-pocket costs and the best ways to reduce them, connect with Katie McDaris Marks for local guidance from offer through closing.
FAQs
How much should a Spokane buyer budget for closing costs?
- A simple rule is 2 to 5% of the purchase price, with exact numbers shown on your Loan Estimate and Closing Disclosure.
Do Washington buyers pay the Real Estate Excise Tax?
- REET is generally a seller cost in Washington. The Department of Revenue’s page on Real Estate Excise Tax explains how it is applied.
Who usually pays for title insurance in Spokane?
- The buyer typically pays the lender’s title policy. The owner’s policy is often paid by the seller in Washington, but the allocation is negotiable.
Are property taxes and insurance collected at closing?
- Yes. You will pay a prorated share of property taxes and may deposit 1 to 3 months of taxes and insurance into an escrow account at closing.
When will I know my exact cash to close?
- Your lender must send a Loan Estimate early in the process and a Closing Disclosure at least three business days before closing that shows final figures.
How can I reduce out-of-pocket costs as a first-time buyer?
- Ask for seller concessions, consider a lender credit, compare multiple lenders, and review WSHFC assistance programs to lower your cash to close.
