Buying in Zillah is exciting, but the line items on your final statement can feel like a puzzle. You want to know what you will pay, what the seller covers, and how to plan your cash to close with confidence. In this guide, you will learn the typical closing costs for Zillah buyers, who usually pays what in Yakima County, and a simple way to estimate your bottom line. Let’s dive in.
What closing costs cover
Closing costs are fees and prepaid items required to complete your purchase, separate from your down payment. They include lender charges, third‑party services like appraisal and title, county recording, prorations for taxes or HOA dues, and initial reserves for taxes and homeowners insurance. These figures vary by loan type and timing, so your exact amount will come from your lender and escrow company.
How much to budget in Zillah
As a starting point, plan for about 2% to 5% of the purchase price in buyer closing costs. Your total depends on your loan program, lender fees and points, whether the seller contributes to your costs, and prepaids like interest, property taxes, and insurance. Washington is an escrow state, so a neutral escrow company will calculate the final numbers and provide your settlement statement.
If you want to understand how lenders disclose these fees, review the Consumer Financial Protection Bureau’s guidance on the Loan Estimate and Closing Disclosure. The Closing Disclosure must be provided at least three business days before you sign, which gives you time to review and ask questions.
- Learn how the Loan Estimate and Closing Disclosure work from the Consumer Financial Protection Bureau.
Who pays what in Yakima County
Some items follow Washington custom, while others are fully negotiable:
- Real Estate Excise Tax: In Washington, the seller typically pays the Real Estate Excise Tax on the sale. You can confirm current rules with the Washington State Department of Revenue.
- Title insurance: In many Washington markets, sellers often pay for the owner’s title policy, and buyers pay for the lender’s policy. This is negotiable and should be confirmed with your escrow company and purchase agreement.
- Escrow fees: These are often split between buyer and seller, but splits can vary and are negotiable.
- Prorations: Property taxes and HOA dues are prorated to the closing date. Local tax schedules in Yakima County affect the proration. You can review county resources through the Yakima County website.
- Seller concessions: Sellers can agree to credit some or all of your closing costs, subject to lender limits and loan program rules.
For general insight on Washington customs and forms, see resources from Washington REALTORS.
Typical buyer cost categories
Lender and loan costs
- Loan origination or lender fee: often 0% to 1% of the loan amount.
- Underwriting and processing: usually $400 to $1,200 combined.
- Appraisal: often $400 to $800, higher for complex properties.
- Credit report: about $20 to $50.
- Tax service and flood certification: typically $10 to $100 combined.
- Mortgage insurance or program fees: FHA loans include an upfront mortgage insurance premium, and VA loans include a funding fee. For program specifics, review HUD resources and confirm details with your lender.
Title, escrow, and recording
- Lender’s title insurance policy: required by most lenders; the premium scales with your loan size.
- Owner’s title insurance policy: often paid by the seller in many Washington markets, but negotiable in the contract.
- Escrow or settlement fee: commonly $300 to $1,200, sometimes split between parties.
- Recording fees: usually $50 to $300, depending on documents and county practices. For recording context, visit Yakima County.
- Survey or plat certification if needed: typically $150 to $500.
Inspections and condition items
- General home inspection: often $300 to $600 for single‑family homes.
- Pest or WDO inspection if needed: about $75 to $200.
- Optional home warranty: approximately $300 to $700 for a one‑year plan.
Prepaids and initial reserves
- Prepaid interest: varies based on your closing date and rate.
- Property taxes: prorated based on Yakima County’s calendar and the closing date.
- Homeowners insurance: many lenders require the first year’s premium at closing, typically $500 to $2,000.
- Initial escrow reserves: lenders may collect 2 to 6 months of taxes and insurance to start your escrow account.
Other possible items
- HOA transfer and prorated dues if applicable.
- Courier, notary, and wire fees, often $25 to $100 total.
Estimate your cash to close
Use this simple framework to plan:
- Cash to close = down payment + buyer closing costs + prepaids and initial escrow reserves − credits and earnest money deposit.
Quick steps
- Set your price and down payment, then calculate the loan amount.
- Ask your lender for a Loan Estimate that lists expected loan fees and prepaids. The CFPB overview explains what to expect on the form.
- Ask escrow for estimates of title charges, escrow fees, recording, and prorations for taxes and HOA dues.
- Add third‑party items like inspection and appraisal.
- Subtract your earnest money and any seller credits.
- Review the Closing Disclosure at least three business days before closing to confirm the exact amount.
Sample scenarios
These examples are illustrative. Your numbers will vary based on loan type, credits, recording fees, and required reserves.
Example A: Purchase price $250,000 with 20% down
- Typical buyer closing costs at 2.5% to 4%: $6,250 to $10,000
- Prepaids and reserves: $2,000 to $5,000
- Earnest money credit: −$5,000
- Estimated cash to close: $50,000 down payment + about $8,250 average costs − $5,000 ≈ $53,250
Example B: Purchase price $425,000 with 10% down
- Closing costs at 2.5% to 4%: $10,625 to $17,000
- Prepaids and reserves: $3,000 to $7,000
- Earnest money credit: −$7,500
- Estimated cash to close: $42,500 down payment + about $13,800 average costs − $7,500 ≈ $48,800
Example C: Purchase price $650,000 with 20% down
- Closing costs at 2% to 3.5%: $13,000 to $22,750
- Prepaids and reserves: $4,000 to $10,000
- Earnest money credit: −$10,000
- Estimated cash to close: $130,000 down payment + about $17,875 average costs − $10,000 ≈ $137,875
Timeline and what to expect in Zillah
- Before you offer: Get preapproved and request a Loan Estimate for your expected loan type. This sets a baseline for fees and reserves.
- During negotiation: Specify who pays what in the purchase agreement. Remember lender limits on seller credits.
- After mutual acceptance: Your lender orders the appraisal. You schedule inspections. Escrow opens and prepares a preliminary estimate of your settlement.
- Three business days before signing: You receive the Closing Disclosure with your exact cash to close. Review it immediately and ask questions if something looks off.
- At signing: Bring certified funds or wire money according to escrow instructions. Always verify wire details directly with the escrow company to protect against fraud.
Ways to prepare and save
- Compare lenders on both rate and fees. Even small differences in origination or points can change your cash to close.
- Ask about timing. Closing near the end of the month can reduce prepaid interest.
- Discuss seller credits. Your agent can help structure an offer that requests seller help with closing costs within your loan’s limits.
- Confirm local customs early. Title policy responsibility and escrow splits can be negotiated. Resources from Washington REALTORS can provide general context.
- Verify county items. Check Yakima County for recording and property tax calendar context, and review REET obligations with the Washington State Department of Revenue.
When you have a clear picture of fees, you can write stronger offers and avoid surprises. If you want help reviewing a Loan Estimate, planning for prorations, or negotiating seller credits in Zillah, our team is happy to walk you through line by line. Schedule a free consultation with Valley Partners.
FAQs
How much are buyer closing costs in Zillah?
- Most buyers should budget about 2% to 5% of the purchase price for closing costs, not including the down payment.
Do Zillah buyers pay Washington’s real estate excise tax?
- Typically no. In Washington, the seller usually pays the Real Estate Excise Tax, but you should confirm details for your specific transaction with escrow and the Department of Revenue.
Who pays for title insurance in Yakima County?
- It is negotiable. In many Washington markets the seller pays the owner’s title policy and the buyer pays the lender’s policy, but the purchase agreement controls.
What is included in lender fees for a Zillah home purchase?
- You may see an origination or lender fee, underwriting and processing, credit report, appraisal, and small items like tax service and flood certification.
When will I know my exact cash to close?
- Your lender must provide a Closing Disclosure at least three business days before you sign, which lists your exact cash to close. See the CFPB for details.
Can a seller cover some of my closing costs?
- Yes. Seller concessions are negotiable, but your loan program sets limits on how much the seller can contribute.
