How to Calculate Your Closing Costs

Direct answer

There is no single formula. Costs depend on your loan, property, and closing date. Still, you can follow steps: start with your price range, list loan costs, add other costs and prepaids, subtract credits, keep your down payment separate, then check the lender's cash-to-close number.

A Step-by-Step Way to Estimate Your Range

Washington buyers often plan for two to three percent of the purchase price in closing costs. On a three-hundred-thousand-dollar price, that range is about six thousand to nine thousand dollars. On a four-hundred-thousand-dollar price, it is about eight thousand to twelve thousand dollars. These are planning figures, not quotes.

Buyers generally do not pay Washington's real estate excise tax. The state says the seller usually pays it. If the seller does not, the buyer becomes responsible. Check your contract to confirm.

What the Estimate Includes

Loan and title charges

These may include lender fees, appraisal fees, and lender's title insurance. Origination charges can cover application, underwriting, processing, and rate-lock fees. Some services can be shopped. The Loan Estimate tells you which ones.

Prepaid and reserve items

Lenders often collect prepaid interest and several months of homeowners insurance at closing. You may also see tax or insurance reserves.

Escrow and recording fees

Escrow or settlement charges cover the closing process itself. Recording fees pay the county to file your deed and loan papers. Both are separate from your down payment and loan charges.

What Changes the Final Number

Totals vary by loan type, property, address, lender, provider, closing date, credits, and contract terms. Two buyers on similar homes can see different totals. Lender credits can lower your closing costs, but they may come with a higher rate. Always compare the tradeoff.

Calculate Your Cash to Close

Cash to close is broader than closing costs. It adds your down payment plus closing costs, then subtracts deposits, seller credits, and other adjustments. Keep your down payment and closing costs as separate lines while you work, then combine them at the end.

Open the Washington closing cost calculator

Before You Sign

The Loan Estimate

Your Loan Estimate lists origination charges, prepaid items, and which services you can shop for. Use it as your working guide while you build your estimate.

The Closing Disclosure

Federal rules require your lender to give you the Closing Disclosure at least three business days before closing. Compare it line by line against your Loan Estimate before you sign.