Surprised by how many fees show up right before closing? You are not alone. If you are planning to buy in Pasco’s 99301 zip code, especially around Seven Sisters, understanding buyer closing costs early can save stress and help you negotiate with confidence. In this guide, you will learn what these costs include, how much to budget, ways to reduce them, and a simple worksheet you can use to estimate your cash to close. Let’s dive in.
What closing costs include
Closing costs are the third-party fees and prepaid items due at closing in addition to your down payment. Common buckets include lender charges, title and escrow services, county recording fees, and prepaids like homeowner’s insurance and property taxes. You may also choose optional protections such as an owner’s title policy or a home warranty.
You will get a Loan Estimate after you apply with a lender and a Closing Disclosure at least 3 business days before closing. These two documents list your exact fees. Review them side by side and ask questions if anything looks off.
How much to budget in 99301
A practical planning range for buyer closing costs is about 2 percent to 5 percent of the purchase price. You might land near the lower end if you secure seller concessions or lender credits. You could be closer to the higher end if you have larger prepaids, choose optional protections, or close at a time that requires a bigger escrow deposit.
In Washington, the Real Estate Excise Tax is typically paid by the seller, so you generally do not budget for state REET as a buyer. Local practice can vary, so confirm this in your purchase contract and with your closing agent.
Lender fees explained
Lender-related costs usually include an origination charge and administrative fees. Many lenders charge 0.5 percent to 1.0 percent of the loan amount for origination or points. Underwriting and processing fees commonly range from about $400 to $1,500 combined. You will also see an appraisal fee, often $450 to $900, plus smaller items like a credit report and flood or tax service checks.
As a planning estimate, lender fees can total roughly 0.5 percent to 1.5 percent of the purchase price. Ask your lender to break out any rate lock or float-down fees so you can compare offers.
Title and escrow costs
Your closing will be handled by a title and escrow company. Expect to pay for a lender’s title insurance policy, which is required by most lenders, and an escrow or closing fee. Buyers often choose an owner’s title policy as a one-time optional protection. Recording fees paid to Franklin County are typically modest flat amounts compared with percentage-based costs.
As a planning estimate, title, escrow, and recording together often land around 0.5 percent to 1.0 percent of the purchase price. If you elect owner’s title insurance, your total in this bucket may be higher.
Prepaids and escrow deposits
Prepaids are not fees for services. They are advance payments your lender collects to set up your escrow and keep essential items current.
- Homeowner’s insurance: Often you prepay the first year at closing. Premiums vary widely by property and coverage.
- Property taxes: In Washington, taxes are prorated to your closing day. Your lender may also collect an escrow cushion, which can be a few months of taxes depending on timing and assessed value.
- Prepaid interest: You will pay interest from your closing date to the start of your first mortgage payment.
- HOA items: If the home is in an HOA, plan for prorated dues or any required reserves.
Prepaids and deposits can reasonably range from about 1.0 percent to 2.0 percent of the purchase price, but this varies with tax schedules and insurance costs.
Optional protections to weigh
- Private Mortgage Insurance for conventional loans with less than 20 percent down is an ongoing monthly cost. Rates vary based on credit and down payment.
- FHA loans include an upfront mortgage insurance premium that is paid at origination or financed, plus monthly premiums.
- A home warranty is optional and often runs a few hundred dollars for the first year.
- Specialized inspections like septic or well testing may apply depending on the property.
Include these in your worksheet so you can see their effect on both upfront and monthly costs.
Ways to reduce costs
You have options to lower or shift closing costs. Each has tradeoffs you should model with your lender.
- Seller concessions: You can negotiate for the seller to pay part of your closing costs. FHA commonly allows up to 6 percent of the sales price. Conventional loans have concession limits that vary by down payment. VA and USDA have their own rules. Always confirm program limits with your lender and write concessions clearly into your offer.
- Lender credits: You may accept a slightly higher interest rate in exchange for a lender credit that reduces cash due at closing. This raises your monthly payment and total interest paid, so ask for a break-even comparison.
- Financing certain costs: Some programs allow specific fees to be financed. This increases your loan balance and monthly payment. Not all fees are eligible.
- Rate buydowns: A seller or builder may fund a buydown to lower your rate for a period or permanently. This affects your closing figures and should be negotiated with the overall offer.
- Assistance programs: The Washington State Housing Finance Commission and local organizations sometimes offer down payment or closing cost assistance for eligible buyers. Check current programs and work with participating lenders early.
Build your budget worksheet
Use a simple worksheet to estimate your cash to close and test scenarios before you shop. Start with a conservative assumption of 3 percent for closing costs, then refine with actual quotes.
Include these fields:
- Home purchase price
- Down payment and loan amount
- Estimated closing cost percentage
- Lender fees: origination, underwriting, processing, appraisal, credit report, third-party checks
- Title and escrow: lender’s policy, owner’s policy if chosen, escrow fee, recording
- Prepaids: first-year homeowner’s insurance, property tax escrow deposit, prepaid interest
- Optional protections: PMI estimate, home warranty, specialized inspections
- Seller concessions and lender credits
- Buyer cash due at closing
- Monthly payment estimates, including PMI if applicable
- Notes and actions: verify Franklin County recording fees, check HOA dues, confirm assistance eligibility
Use these quick formulas:
- Loan amount = Purchase price − Down payment
- Estimated closing costs = Purchase price × Closing cost percent
- Buyer cash at closing = Down payment + Estimated closing costs − Seller concessions − Lender credits
Example scenarios
These examples show how the math can look. Use them as starting points and replace with your numbers.
Example A: $350,000 purchase, 5 percent down
- Down payment: $17,500
- Closing costs at 3.0 percent: $10,500
- Buyer cash before concessions: $28,000
- With $8,000 seller concessions: about $20,000 due at closing
Example B: $450,000 purchase, 10 percent down
- Down payment: $45,000
- Closing costs at 2.5 percent: $11,250
- Buyer cash before lender credit: $56,250
- With a $5,000 lender credit for a slightly higher rate: about $51,250 due at closing
Example C: $600,000 purchase, 20 percent down with higher prepaids
- Closing costs at 4.0 percent: $24,000
- Down payment: $120,000
- Buyer cash to close: about $144,000
Local notes for Seven Sisters
If you are targeting homes near Seven Sisters in 99301, confirm whether the property is part of an HOA and ask about dues or any capital contributions at closing. Title companies will provide the CC&R package so you can review rules and costs early.
Franklin County recording charges are generally small flat fees compared with percentage-based items, but you should verify current amounts with your title or escrow officer. Property tax proration and escrow cushions depend on the tax calendar, which can increase the cash you need at certain times of year.
Timeline and next steps
- Get preapproved with a local lender and request a detailed Loan Estimate.
- Compare at least two lender quotes line by line. Ask about credits, points, and rate lock terms.
- Choose a title and escrow company through your purchase agreement and request a fee quote.
- Review your Closing Disclosure at least 3 business days before closing and confirm your final cash to close.
- If you plan to use assistance programs or seller concessions, coordinate early with your lender and write terms clearly into your offer.
Ready to move with confidence
Closing costs do not have to be a surprise. When you plan for 2 percent to 5 percent of the price, break your estimate into the buckets above, and use concessions or credits wisely, you can keep your cash to close predictable. If you want local guidance on budgeting, negotiation strategies, and homes available now in Pasco’s 99301, reach out to the boutique team that knows Seven Sisters and the wider Tri-Cities inside and out. Connect with Laura & Wes Hodges to get personalized advice and receive listings in your inbox.
FAQs
What are typical buyer closing costs in Pasco 99301?
- Plan for about 2 percent to 5 percent of the purchase price, depending on your loan, prepaids, and whether you use seller concessions or lender credits.
Who pays Washington’s Real Estate Excise Tax in Pasco?
- The seller typically pays the state REET, though you should confirm the details in your purchase contract and with your closing agent.
How are Franklin County property taxes handled at closing?
- Taxes are prorated to your closing day, and your lender may collect an escrow cushion, so timing can increase your upfront deposit even though it is not a fee.
Can a seller pay my closing costs with FHA or conventional loans?
- FHA commonly allows seller contributions up to 6 percent of the price, while conventional loans have limits tied to your down payment, so confirm exact allowances with your lender.
What is the difference between a Loan Estimate and Closing Disclosure?
- The Loan Estimate is issued after you apply and provides estimated fees, while the Closing Disclosure lists final figures and must be delivered at least 3 business days before closing.
How do lender credits affect my payment?
- A lender credit can reduce cash due at closing in exchange for a higher interest rate, which increases your monthly payment and total interest over time; ask for a break-even analysis.
