Washington Buyer Closing Costs Worksheet: Escrow Fees, Lender Title Policy and Prepaids
Updated October 2026
A $700,000 Washington purchase with 5% down starts with a $35,000 down payment, not a $35,000 total cash requirement. Escrow charges, title coverage, lender fees and prepaid ownership expenses belong in separate worksheet lines so seller credits and assistance can be applied correctly.
Build a worksheet around actual charges
| Worksheet line | What to enter |
|---|---|
| Down payment | Purchase price minus base loan amount |
| Lender charges | Origination, underwriting and selected points |
| Appraisal and other services | Quoted charges, noting amounts already paid |
| Escrow settlement fee | Buyer’s contractual share |
| Lender title policy | Premium and required endorsements |
| Recording charges | County charges for recorded documents |
| Prepaid interest | Daily interest for the applicable closing period |
| Homeowners insurance | Initial premium and required reserves |
| Property-tax escrow | Initial deposit plus settlement adjustments |
| Credits and deposits | Earnest money, eligible credits and assistance |
An owner’s title policy protects the buyer’s ownership interest; a lender’s policy protects the lender’s interest. Who pays particular premiums depends on the contract and local practice. Washington closings commonly coordinate an escrow company and title company, sometimes within one organization. Signing, funding and recording are distinct milestones.
Use the closing-cost estimator for planning, then replace estimates with the Loan Estimate and Closing Disclosure. The Consumer Financial Protection Bureau explains how to compare these documents.
Apply credits without double-counting them
Seller credits generally pay eligible closing expenses rather than the required down payment. Program limits vary with loan type, occupancy and down payment. Unused credits usually cannot become cash back simply because the negotiated amount exceeds allowable costs.
Ask the lender to test a proposed credit against actual charges before finalizing the offer. Also distinguish seller credits from lender credits, which may accompany a higher interest rate.
WSHFC Home Advantage DPA can provide a second mortgage calculated at up to 4%–5% under available options and eligibility rules. It is borrowed assistance, not automatically a grant. Verify terms through the Washington State Housing Finance Commission.
Check taxes and the final cash figure
REET is generally a seller expense, but contractual allocations can change your budget. Property-tax prorations are separate from the lender’s escrow deposit. Review assessments through Washington Department of Revenue Property Tax, especially when an older bill understates completed construction.
Subtract earnest money and approved credits only once. Reconcile every remaining item with escrow, and independently verify wiring instructions using a trusted telephone number. For builder-specific charges and assessment delays, read the new-construction financing guide.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Washington Buyer Closing Costs Worksheet: Escrow Fees, Lender Title Policy and Prepaids — Separate monthly debt-service-to-income from upfront cash: down payment plus fees and prepaids, less deposits and approved credits. Avoid counting earnest money twice.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.