The Spokane mortgage guides
Closing Costs
Updated: August 2026
Closing Costs in Washington State.Who Pays What in Spokane
Everyone budgets for the down payment. The closing costs are the number that sneaks up — and in Washington, who pays what follows rules most buyers have never seen.
Real numbers in about a minute — no credit pull, no spam.
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Closing costs in Washington State run buyers roughly 2% to 4% of the purchase price — $8,500 to $17,000 on a $425,000 Spokane home — while sellers carry the excise tax, commissions, and the owner's title policy. Who pays what follows customs specific to Washington, and knowing them changes how you negotiate.
The buyer's bill, line by line
Your cash at closing splits into three buckets:
- Lender charges. Origination or processing fees, the appraisal, the credit report. These vary by lender more than buyers expect, and they're printed on your Loan Estimate within three days of applying — compare that page, not advertising.
- Title and escrow. You buy the lender's title policy; Washington custom has the seller buying the owner's policy that protects you. The escrow company's fee splits down the middle, seller and buyer each paying half.
- Prepaids and escrow reserves. A year of homeowners insurance, a few months of property taxes, and interest through the end of your closing month. Not fees — your own bills, front-loaded.
The closing date is a quiet lever here: close late in the month and you prepay only days of interest instead of weeks. It doesn't change what the house costs, but it changes the check you write at signing.
The seller's bill — and why buyers should read it anyway
Sellers in Washington pay the real estate excise tax: 1.1% to the state on the first $525,000, higher tiers above that, plus a local share around half a percent in Spokane County. Add agent commissions and the owner's title policy and a $425,000 sale carries five figures of seller-side cost before the mortgage payoff.
Why this matters to you as a buyer: when you ask for a seller credit, you're negotiating against that stack. A seller netting less than they hoped fights the credit; a seller who priced the home knowing their costs often says yes. Your agent runs that negotiation — my job is telling you the exact credit number that makes your loan work, and the caps your program allows: 3% on a conventional loan with less than 10% down, 6% on FHA, 4% in concessions on VA.
How Spokane buyers shrink the number
The 2-4% estimate is the ceiling, not the sentence. The tools, in the order I reach for them:
- Seller credits — negotiated in the offer, strongest in a slower market. Right now in Spokane, credits are back on the table in a way they weren't two years ago.
- WSHFC assistance — the same down payment assistance programs can point at closing costs; Home Advantage lends up to 5% of the loan amount across both buckets.
- Closing date strategy — late-month closings cut prepaid interest to days.
- Lender credits — a slightly different rate structure can generate a credit toward your costs. Whether that trade wins depends on how long you'll keep the loan, and I'll show you the break-even rather than assert it.
How I run the numbers with you
Closing costs are the least standardized number in the transaction, which is exactly why estimates from the internet — this page included — are the starting point, not the answer. Bring me a price point and a loan program and you'll get the line-item version on your file: each fee, the prepaids, and the credits that could offset them. Call, text, or start above.
On the record
Frequently asked questions.
Who pays closing costs in Washington State?
Both sides, different bills. Buyers pay their lender fees, appraisal, lender's title insurance, half the escrow fee, prepaid taxes and insurance, and recording. Sellers pay the real estate excise tax, agent commissions, the owner's title policy by custom, and their half of escrow. The seller's tab is usually bigger in dollars because commissions and excise tax scale with price — but the buyer's share is the one that has to be cash in hand at signing.
How much are closing costs for a buyer in Washington?
Plan on roughly 2% to 4% of the purchase price on top of your down payment. On a $425,000 Spokane home that's $8,500 to $17,000, driven mostly by lender fees, title and escrow, and the prepaids — the first year of homeowners insurance plus a cushion of property taxes the escrow account collects upfront. Loan program, credit score, and closing date all move the number, which is why I hand you a line-item estimate, not a rule of thumb.
What is the Washington real estate excise tax, and who pays it?
REET is the state's graduated tax on the sale, and the seller pays it. The state rate is 1.1% up to $525,000, stepping up through 1.28% and 2.75% to 3% above roughly $3 million, plus a local portion — around half a percent in most of Spokane County. Selling a $425,000 home costs about $4,675 in state REET plus roughly $2,125 local. Buyers: this isn't your bill, but it explains a chunk of your seller's math when you negotiate.
Can the seller pay my closing costs?
Yes, through negotiated seller credits, and in a balanced market it's common. The caps depend on your loan: conventional allows 3% of the price with less than 10% down (more with bigger down payments), FHA allows 6%, and VA allows 4% in concessions plus normal closing costs. A credit can also buy down your rate rather than just covering fees — sometimes the stronger use of the same dollars. I'll tell you which before your agent writes the offer.
Do I need an attorney to close on a house in Washington?
No. Washington closes through escrow companies and title officers, not attorneys — unlike some East Coast states. The escrow fee, customarily split half-and-half between buyer and seller, covers the neutral third party that handles documents and money. You can hire an attorney if something unusual warrants it, but a standard Spokane purchase doesn't require one.
What are prepaids, and why do they make my cash-to-close bigger?
Prepaids aren't fees — they're your own future bills collected early. At closing you fund the first year of homeowners insurance, several months of property taxes into the escrow account, and interest from your closing date to month's end. On a $425,000 Spokane home, figure a few thousand dollars. It stings at signing, but it's money that was always going to be spent — closing just front-loads it.
Is there closing cost assistance in Washington?
Yes — the same WSHFC programs that help with down payments can cover closing costs too. Home Advantage DPA lends up to 5% of the first mortgage amount and the funds can go toward either bucket, and seller credits stack on top. Between a credit, an assistance second, and picking the right closing date, plenty of Spokane first-time buyers bring far less cash to signing than the 2-4% estimate suggests.
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