Are you wondering how much cash you need at closing for a Kennewick home, beyond your down payment? You are not alone. Closing costs can feel confusing, but with a clear plan you can avoid surprises and move forward with confidence. In this guide, you will learn what closing costs include, typical ranges in the Tri-Cities, who pays what in Washington, and how to plan your cash to close. Let’s dive in.
Closing costs: the big picture
Most Kennewick buyers should budget about 2% to 5% of the purchase price for closing costs, not including the down payment. Your final number depends on loan type, lender fees, title and escrow charges, and prepaids like taxes and insurance. Some costs are negotiable, such as seller credits or who pays certain title and escrow fees. Your lender’s Loan Estimate and final Closing Disclosure will show the official cash-to-close amount.
How much to budget
Here are simple examples for buyer closing costs only, excluding the down payment:
- $300,000 purchase price
- 2%: $6,000
- 3.5%: $10,500
- 5%: $15,000
- $500,000 purchase price
- 2%: $10,000
- 3.5%: $17,500
- 5%: $25,000
- $800,000 purchase price
- 2%: $16,000
- 3.5%: $28,000
- 5%: $40,000
Your costs may land on the lower end if you negotiate seller concessions or use lender credits. They may be higher if your loan includes upfront fees, reserves for taxes and insurance, or discount points to lower your rate.
Who pays what in WA
In Washington, sellers commonly pay the state Real Estate Excise Tax. Sellers in many markets also pay for the owner’s title insurance policy, while buyers pay for the lender’s title policy. Escrow fees are often split, but this is negotiable in the contract. Recording fees, taxes, and HOA dues are prorated based on the closing date, and practices can vary by agreement.
Typical buyer line items
Lender and loan fees
You can expect lender charges such as an origination fee, underwriting and processing fees, and a credit report fee. An appraisal is usually required and often runs about $400 to $900, depending on property type and size. Small third-party charges like flood certification or automated valuation reports may also appear. Discount points are optional and can lower your rate in exchange for an upfront cost.
Mortgage insurance and fees
If you use an FHA loan, the upfront mortgage insurance premium is commonly 1.75% of the loan amount. Conventional loans with less than 20% down often include private mortgage insurance, which is usually paid monthly. VA and USDA loans have one-time program fees that can often be financed. These program differences affect both your cash to close and your monthly payment.
Title, escrow, recording
Buyers typically pay for the lender’s title insurance policy. The owner’s title policy is often a seller expense in many Washington transactions, though it can be negotiated. Escrow fees cover the settlement process and may be split between buyer and seller or assigned to one party. County recording fees are fixed amounts for recording the deed and deed of trust and are usually a modest part of the closing costs.
Prepaids and reserves
Prepaid interest covers the interest from your closing date to the start of your first mortgage payment. You will also arrange homeowners insurance, and your lender may require the first year paid at or before closing. Taxes are prorated as of the closing date, and your lender may set up an escrow account that holds several months of tax and insurance reserves.
Upfront inspections and reports
Home inspection, pest or wood-destroying organism reports, and surveys are often paid by the buyer before closing. These do not always appear on the closing statement, since you may have already paid them. Keep them in your overall budget as part of your cash needs for the purchase.
Loan type impact
- FHA: Expect the upfront mortgage insurance premium (commonly 1.75% of the loan amount). It can be financed into the loan or paid at closing, and monthly MIP applies.
- Conventional with less than 20% down: Expect PMI. You may choose monthly PMI or a single upfront premium. Upfront PMI raises cash to close but may lower your monthly cost.
- VA: A one-time funding fee often applies and can usually be financed. Many VA buyers do not have monthly mortgage insurance. Seller concessions are allowed up to program limits.
- USDA: Includes an upfront guarantee fee and an annual fee. The upfront fee is often financed.
Your Loan Estimate will show whether any upfront program fees are financed or due at closing. It will also list any required tax and insurance reserves.
Timeline and disclosures
For a financed purchase in Kennewick, plan on a 30 to 45 day timeline from mutual acceptance to closing. Cash purchases can often close sooner, sometimes in 7 to 21 days, depending on title and payoffs. Your lender must issue a Loan Estimate within 3 business days after receiving a complete application. You must receive the final Closing Disclosure at least 3 business days before closing.
Cash-to-close checklist
Use this quick list to stay organized and avoid last-minute stress:
- Request a Loan Estimate early to understand your estimated costs and monthly payment.
- Budget 2% to 5% of the purchase price for closing costs, plus your down payment.
- Set aside earnest money. It will be credited to you at closing.
- Confirm how you will deliver funds for closing. Use a wire or certified funds as instructed by title.
- Protect yourself from wire fraud. Call your title or escrow company directly to verify wiring instructions before sending any money.
- Ask for your Closing Disclosure as soon as it is available and review it line by line.
- Plan for upfront items like inspection and appraisal fees that may be paid before closing.
- Request a preliminary closing statement from the title or escrow company to see a near-final breakdown.
Local tips for Tri-Cities buyers
- Ask your agent or the title company for a recent sample buyer closing statement from a Kennewick sale in your price range.
- If affordability is tight, discuss seller concessions, lender credits, or financing options for certain fees.
- Closing dates can change your prepaid interest and tax proration. If you are flexible, your agent and lender can help you pick a date that fits your budget and schedule.
Ready to buy in Kennewick?
You deserve clear numbers and a smooth path to the keys. If you want a step-by-step plan, market-savvy negotiation, and calm guidance from offer to funding, reach out. Connect with Sandra McKinley for a local, white-glove strategy to your cash to close.
FAQs
How much should a Kennewick buyer budget for closing costs?
- Plan on about 2% to 5% of the purchase price for buyer closing costs, not including the down payment.
In Washington, who typically pays closing costs?
- Sellers commonly pay the state Real Estate Excise Tax and often the owner’s title policy, while buyers pay the lender’s title policy and many loan-related fees. Many items are negotiable.
When will I know my exact cash to close for a Kennewick home?
- Your lender must provide a Closing Disclosure at least 3 business days before closing, and it shows your final cash-to-close.
Can I roll closing costs into my mortgage in Kennewick?
- Sometimes. Certain program fees can be financed, and lender credits or seller concessions can reduce out-of-pocket costs. This can affect your loan-to-value and monthly payment.
What timeline should I expect from offer to closing in Kennewick?
- Financed purchases often close in 30 to 45 days. Cash purchases can be faster, sometimes 7 to 21 days depending on title and payoffs.
