Buying in Bothell and trying to pin down what you’ll pay at closing? You are not alone. Closing costs can feel confusing, especially when you are juggling loan terms, taxes, and whether the home records in King County or Snohomish County. In this guide, you’ll see a simple breakdown of typical buyer costs, how the county matters, example budgets, and smart ways to reduce your out-of-pocket cash. Let’s dive in.
What buyer closing costs include
Closing costs are the one-time fees due when you finalize your purchase. Most buyers can plan for about 2% to 5% of the purchase price for total closing costs, excluding your down payment. That range reflects lender fees, title and escrow charges, prepaids, and reserve deposits. For a clear picture, always compare official Loan Estimates from lenders and confirm your final Closing Disclosure before you sign.
Lender fees and appraisal
Lender fees cover the cost of processing and underwriting your loan. These can be a flat fee or a percentage. On many conventional loans, lender charges (not counting points) often fall in the low hundreds to low thousands.
- Discount points are optional pre-paid interest. One point usually equals 1% of the loan amount and lowers your rate. Your lender can help you calculate the break-even.
- Appraisals are commonly in the low hundreds to under $1,000 in the Puget Sound area, depending on the home and complexity.
- You may also see smaller items like credit report and underwriting charges.
If you are new to mortgage shopping, review the CFPB’s plain-language overview of what closing costs include.
Title and escrow charges
A title and escrow company coordinates the closing, holds funds, and records your deed and deed of trust. Common items include:
- Escrow/settlement fee for handling the closing.
- Title insurance: a lender’s policy (required with financing) and an optional owner’s policy to protect your ownership. Costs depend on price and loan amount and are paid one time at closing.
- County recording fees for the deed and deed of trust, plus small charges for wire, courier, or notary services.
Combined escrow, title, and recording fees often total in the low hundreds to low thousands.
Prepaids and escrow reserves
Prepaids are not fees. They are advance funds set aside for property taxes, homeowners insurance, and the daily interest due from your closing date to your first payment.
- Property taxes are prorated based on the closing date and the county’s billing schedule.
- Lenders usually require the first year of homeowners insurance paid at closing or a portion plus an escrow deposit.
- Lenders often collect an initial escrow cushion. Under federal rules, the typical cushion is about two months of escrowed items as a buffer. Learn more about escrow accounts and cushions.
- Prepaid interest covers the days between closing and your first payment due date.
Depending on the month you close and local tax amounts, prepaids and reserves can range from several hundred to several thousand dollars.
Government and other charges
- Recording fees vary by county and the number of pages recorded.
- In Washington State, the Real Estate Excise Tax (REET) is customarily paid by the seller. Contracts can vary, but the seller typically pays REET. You can confirm how REET works on the Washington Department of Revenue’s REET page.
- Some properties have HOA transfer fees, municipal assessments, or utility-related items that appear on the closing statement.
How much to budget in Bothell
Use the 2% to 5% planning range to sketch your budget. Actual costs depend on your loan type, whether you buy points, the title company’s fees, your insurance premium, your tax escrow, and the county where the home records.
Here are simple examples that exclude the down payment:
- $600,000 purchase price → estimated buyer closing costs: $12,000 to $30,000
- $800,000 purchase price → estimated buyer closing costs: $16,000 to $40,000
- $1,000,000 purchase price → estimated buyer closing costs: $20,000 to $50,000
These figures are only illustrations. After you apply, lenders must provide a Loan Estimate within three business days that outlines your projected closing costs. Near the end, you must receive a final Closing Disclosure at least three business days before closing so you can review exact numbers.
King vs. Snohomish: why county matters
Bothell crosses both King County and Snohomish County. The county impacts a few items:
- Recording fees: Each county has its own fee schedule, so the amounts can differ.
- Tax proration: Property tax billing cycles and how much is due at different times of year affect how taxes are prorated at closing.
- Title and escrow fees: Some settlement charges vary by location and company.
When you find a home, confirm which county will handle recording and tax proration. Your lender and title company will then estimate the correct fees for that county.
Ways to reduce your out-of-pocket cash
There are several strategies to lower what you bring to closing. Each option has trade-offs, so run the math with your lender and agent.
Seller credits
You can negotiate for the seller to cover some of your closing costs and prepaids. The maximum seller-paid amounts depend on the loan program and your down payment. As a general guide:
- FHA often allows seller contributions up to about 6% of the price, subject to current program rules.
- Conventional loan limits vary by down payment and occupancy. Lower down payments usually mean lower contribution caps, while larger down payments may allow higher caps.
- VA and USDA loans have their own rules for what the seller can pay.
In competitive markets, asking for large credits can affect how a seller views your offer. In a more balanced market, credits may be easier to negotiate. Your agent can model how a higher price with a seller credit compares with a lower price and fewer concessions.
Lender credits vs. discount points
A lender credit reduces your upfront costs in exchange for a higher interest rate. Paying discount points does the opposite: more cash upfront for a lower rate. The right choice depends on your time horizon and the monthly payment difference. Ask your lender to calculate the break-even point for both choices so you can compare lifetime cost.
Assistance programs and gifts
Washington buyers can explore state and local assistance:
- The Washington State Housing Finance Commission offers down payment and closing cost assistance that can pair with certain mortgages. Start with the WSHFC homebuyer programs to review options and eligibility.
- Some counties, cities, and non-profits offer first-time buyer help, but funding and rules change. Check early so your lender can align your loan with any assistance you qualify for.
- Many loan programs allow gifts from eligible donors for closing costs, with documentation.
Documents and timing to expect
Staying on top of disclosures keeps your closing smooth and on schedule.
- Loan Estimate: Lenders must deliver it within three business days of your application. It outlines estimated closing costs and your projected monthly payment.
- Title commitment and escrow estimate: The title/escrow team will provide expected fees and who pays what.
- Closing Disclosure: You must receive the final, itemized closing costs at least three business days before closing.
- Settlement statement: At signing, you will see the final credits and debits, including any prorations and reserves.
If your escrow account calculation results in a small over-collection, you may receive a refund after closing. Under-collection can increase your escrow portion later.
First-time and value-minded buyer checklist
Use this quick list to keep your numbers tight and your process clear.
- Budget 2% to 5% of the price for closing costs, separate from your down payment.
- Get Loan Estimates from at least two lenders and compare total costs, not just rate.
- Ask the title/escrow company for an early fee estimate.
- Confirm whether the property records in King County or Snohomish County.
- Consider seller credits, lender credits, and WSHFC programs early in your search.
- Plan cash for the appraisal, inspection, and any immediate post-closing needs.
Ready to plan your numbers?
If you want a clear, line-by-line picture for a specific Bothell home, connect with a local advisor who models costs the way you do budgets. You will get data-backed guidance on credits, lender options, county fees, and how to structure an offer that protects your cash. Reach out to CJ Singh to compare scenarios, request lender introductions, or get a closing-cost estimate tailored to your Bothell target.
FAQs
What are typical buyer closing costs in Bothell?
- Most buyers can plan for about 2% to 5% of the purchase price for closing costs, excluding the down payment, depending on loan type, points, title fees, and prepaids.
Who pays the Real Estate Excise Tax (REET) in Washington?
- REET is customarily paid by the seller in Washington State, though contracts can vary; you can review REET basics on the Washington Department of Revenue’s site.
How does King County vs. Snohomish County affect my closing costs?
- Recording fees and how property taxes are prorated at closing can differ by county, so confirm the county early to get accurate estimates.
What lender fees should I expect as a Bothell buyer?
- You may see origination or underwriting fees, an appraisal charge, credit report fees, and possibly discount points if you choose to buy down the rate; totals vary by lender and program.
What are prepaids and escrow reserves at closing?
- Prepaids include property taxes, homeowners insurance, and daily interest; lenders also collect an initial escrow cushion, often about two months of escrowed items, to keep the account stable.
When will I receive my Loan Estimate and Closing Disclosure?
- The lender must send your Loan Estimate within three business days of application and your Closing Disclosure at least three business days before closing.
Can I reduce closing costs without paying points?
- Yes; you can request seller credits in your offer or take a lender credit in exchange for a slightly higher rate, both of which lower upfront cash.
Do I need an owner’s title insurance policy as a buyer?
- The lender’s policy is required with financing, while the owner’s policy is optional but commonly purchased for one-time protection of your ownership.
