Are you trying to pin down how much cash you’ll actually need to close on a home in North Spokane? You’re not alone. Between lender fees, title and escrow, and prepaid expenses, the numbers can feel fuzzy when you’re just starting out. In this guide, you’ll learn what closing costs are, what’s typical in Spokane and Washington State, how to plan your budget, and smart ways to manage or reduce what you pay. Let’s dive in.
What closing costs are
Closing costs are the fees and prepaid items you pay to complete your purchase. They are separate from your down payment. Your down payment builds equity. Closing costs cover services and prepaids tied to your loan and the transfer of the property.
Most buyers should expect closing costs of about 2% to 5% of the purchase price. Your exact amount depends on your loan program, lender, and which fees each party agrees to cover.
You’ll receive two key disclosures from your lender. The Loan Estimate arrives shortly after you apply and outlines expected fees. At least three business days before closing, you’ll get a Closing Disclosure that shows your final costs and cash-to-close.
What North Spokane buyers typically pay
Lender fees
These cover originating and underwriting your loan. You may see an origination fee, underwriting or processing charges, a credit report fee, and sometimes an application fee. If you choose discount points to lower your interest rate, those will appear as a separate cost. Ask for a Loan Estimate early so you can compare lenders.
Appraisal, inspections, and survey
Most loans require an appraisal to support the value. Appraisals often cost several hundred dollars, commonly in the $400 to $800 range depending on the property and timing. You choose and pay for inspections. A general home inspection is strongly recommended, and you might add pest, sewer, roof, or septic inspections as needed. A survey is not always required and depends on title and loan needs.
Title and escrow services
Title companies research and insure clear ownership. Your lender will require a lender’s title insurance policy. An owner’s title policy is optional but recommended. The escrow or settlement fee covers the closing process. Who pays which title and escrow costs can vary by local custom and negotiation in Washington. Ask your agent and the title company how costs are typically split in Spokane so you can plan your budget.
Government and recording fees
Spokane County charges to record the deed and your loan documents. These fees are usually modest and depend on the number of documents recorded. Washington also has a real estate excise tax on property sales. It is commonly paid by the seller, but payment can be negotiated in the purchase agreement.
Prepaid items and escrow reserves
You will prepay mortgage interest from the day your loan funds until your first monthly payment date. Lenders typically require you to pay the first year of homeowners insurance at closing. Many loans also require an escrow account for property taxes and insurance, which means you will deposit a few months of tax and insurance payments at closing.
Prorations and reimbursements
In Washington, property taxes are billed semiannually, typically in April and October. At closing, taxes are prorated based on the closing date and the most recent assessments. You may also see prorations or adjustments for HOA dues, utilities, and special assessments so each party pays their share for the period they own the home.
Other costs to plan for
These items often sit outside the typical “closing cost” total but affect your cash-to-close:
- Earnest money deposit, which is credited back to you at closing
- Moving costs, immediate repairs, and setup expenses
- HOA transfer or document fees when applicable
Washington and Spokane specifics
Property tax proration
Expect prorated property taxes tied to Spokane County’s semiannual billing schedule. The escrow company will calculate based on your closing date and the latest tax amounts.
Real Estate Excise Tax (REET)
Washington charges a real estate excise tax on sales. It is commonly the seller’s cost in our area, but it can be negotiated and documented in the contract. While this usually does not increase your closing costs, it can affect how a seller views offers and concessions.
HOA and condo considerations
Some North Spokane communities and condominium associations charge transfer or administrative fees. You may also prepay the first month of dues and share prorations for the closing month. If you are buying into an HOA, ask early for an estimate of any move-in or document fees.
Can a seller help with your costs?
Seller concessions can be used to pay some or all of your closing costs, prepaids, and discount points, and sometimes repairs you negotiated in the contract. The amount allowed depends on your loan program and down payment. Because program limits vary, ask your lender to confirm what is allowed for your specific loan. You typically request concessions when you write your offer. Concessions must fit lender rules and can affect underwriting and appraisal, so get lender approval before finalizing your terms.
Estimate your cash to close
Use this quick worksheet to sketch your budget before you tour homes. Replace the placeholders with your numbers.
| Item | Your estimate |
|---|---|
| 1. Purchase price | |
| 2. Earnest money deposited (credit) | |
| 3. Down payment (amount or %) | |
| 4. Loan amount = Price − Down payment | |
| 5. Estimated closing costs (start with 2%–5%) | |
| • Lender fees | |
| • Appraisal and inspections | |
| • Title and escrow | |
| • Recording fees | |
| • Prepaid interest and insurance | |
| • Escrow reserves for tax and insurance | |
| • HOA transfer or document fees | |
| 6. Seller credits or concessions | |
| 7. Cash-to-close = (Down payment − Earnest money) + Closing costs + Prepaids/reserves − Seller credits |
Here is a simple example to show the math. Your amounts will vary.
- Purchase price: 400,000
- Down payment: 10% = 40,000
- Earnest money: 5,000 credit
- Estimated closing costs: 3% of price = 12,000
- Prepaids and escrow reserves: 3,000
- Seller concessions: 5,000
- Cash-to-close = (40,000 − 5,000) + 12,000 + 3,000 − 5,000 = 45,000
Step-by-step plan for North Spokane buyers
- Get fully pre-approved so you receive a Loan Estimate with line-item cost estimates.
- Ask each lender which fees can be financed or offset with lender credits and how that affects your rate.
- Request a preliminary title and escrow estimate from a local title company and ask how taxes and HOA dues are prorated.
- Use the worksheet to confirm your cash-to-close and set aside funds for inspections and moving.
- If you want help with costs, discuss seller concessions with your agent and confirm program limits with your lender before writing offers.
- When you are under contract, review your Closing Disclosure carefully. Expect it at least three business days before closing.
- For closing funds, bring certified funds or follow the title company’s wire instructions. To avoid wire fraud, always verify instructions by calling a known phone number for the escrow office.
Protect your budget
A little preparation goes a long way. Compare Loan Estimates so you understand lender fees and discount point options. Plan for inspections and immediate upkeep after move-in. Ask early about HOA and condo fees if they apply. Confirm who pays which title and escrow charges, because that can shift a few line items in your favor.
When questions come up about home condition or repair priorities, lean on local expertise. If you are weighing inspection findings against your long-term plans, a practical, construction-savvy perspective can help you decide when to request repairs, when to ask for concessions, and when to move forward.
Let’s make your numbers clear
If you want a straightforward view of your cash-to-close for homes in North Spokane, I’m here to help you line it all up. From lender comparisons to local title and escrow estimates, you will get a clean breakdown so you can move with confidence. Reach out to Kristin Vanos to start your plan today.
FAQs
What are buyer closing costs in Spokane?
- Closing costs are the fees and prepaids to complete your purchase, separate from your down payment. Plan for roughly 2% to 5% of the purchase price.
How are Washington property taxes handled at closing?
- Taxes are billed semiannually and prorated at closing based on your date of purchase and the most recent assessments.
Who pays Washington’s real estate excise tax?
- Washington’s REET is commonly paid by the seller, but payment can be negotiated in the purchase agreement.
Can a seller pay my closing costs?
- Yes, within your loan program’s limits. Ask your lender for the specific cap and get lender approval for any concessions.
Are appraisals and inspections required?
- Lenders usually require an appraisal. Inspections are your choice but strongly recommended. Appraisals often run several hundred dollars, commonly $400 to $800.
