Are you budgeting for a home in Bellingham and wondering how much cash you’ll need at closing? You’re not alone. Buyers often focus on the down payment and feel surprised by the final “cash to close.” This guide breaks down what closing costs look like in Whatcom County, how cash vs. financed purchases differ, what you can negotiate, and a checklist you can use to plan with confidence. Let’s dive in.
What counts as closing costs
Closing costs are the one-time fees and prepayments due when you finalize your purchase. They are separate from your down payment. You’ll see charges for title and escrow services, county recording, and prepaid items like property taxes and homeowners insurance. If you finance the purchase, you’ll also see lender fees and possibly discount points.
The exact total depends on your loan type, the provider you choose, the timing in the tax and insurance cycle, and any credits you negotiate with the seller.
Typical totals in Bellingham
- For financed purchases, plan for roughly 2% to 5% of the purchase price in buyer closing costs. This does not include your down payment.
- For cash purchases, costs are usually lower at 0.5% to 2% of the price because there are no lender fees.
- In Washington, the real estate excise tax (REET) is typically a seller expense, but payment can be negotiated by contract.
- You’ll also see Whatcom County recording fees and prorated items like property taxes and HOA dues.
For your specific numbers, rely on the Loan Estimate you receive within three business days after a mortgage application and the Closing Disclosure you receive at least three business days before closing.
Line-item breakdown
Lender fees (financed only)
These are paid only if you are getting a mortgage.
- Origination or lender fee: typically 0.25% to 1.0% of the loan amount.
- Processing and underwriting fees: often $300 to $1,000 combined.
- Discount points (optional): 1 point = 1% of the loan amount, paid to lower your rate.
- Appraisal: usually $450 to $800 for most single-family homes.
- Credit report and small verifications: often $25 to $200 combined.
Title, escrow, and recording
- Escrow or closing service fee: commonly $300 to $1,500, depending on complexity.
- Title insurance: lenders usually require a lender’s policy. An owner’s policy is common but negotiable by local custom. Confirm who pays what in your contract and with the title company.
- Recording fees: Whatcom County charges fixed fees per recorded document. Your title or escrow officer will confirm the current amounts.
- Transfer tax: REET is usually paid by the seller in Washington, though parties can negotiate otherwise.
Prepaid items and reserves
- Homeowners insurance: many lenders collect the first year’s premium at closing. Premiums vary by home and coverage.
- Property taxes: you will reimburse the seller for any prepaid portion and may fund an initial escrow deposit for future bills.
- Prepaid interest: covers interest from your closing date to your first mortgage payment.
- Escrow or impound account deposits: many lenders collect 2 to 3 months of taxes and insurance to start the account.
Inspections and surveys
- General home inspection: typically $300 to $700.
- Specialty inspections (pest, septic, sewer scope, radon, lead, mold): commonly $100 to $500 each.
- Survey, if needed: $300 to $1,200+ depending on the property.
HOA and community fees
- Prorated HOA dues and any move-in or transfer fees set by the association.
- HOA disclosure packet or document fees may apply.
Earnest money
- The earnest deposit is paid after mutual acceptance and credited to you at closing per the contract. Amounts vary by offer strategy and market conditions.
Miscellaneous
- Endorsements, courier, and notary charges are typically small line items that can total $50 to $300.
Cash vs. financed in Whatcom County
Key differences
- Cash buyers avoid lender fees and lender-required mortgage insurance.
- Cash buyers still pay title and escrow fees, recording, prorated taxes and HOA dues, and any inspections they choose.
- Cash closings are often faster, commonly 7 to 14 days, while financed closings typically run 30 to 45 days.
- An owner’s title policy remains a smart protection choice, even for cash.
Example: financed purchase at $500,000
Assume 20% down and a $400,000 loan.
- Lender fees and appraisal: about 0.5% to 1.5% of the loan → $2,000 to $6,000
- Title, escrow, and recording: $1,000 to $3,000
- Prepaids and initial reserves: $2,000 to $5,000
- Inspections: $300 to $1,200
Estimated buyer closing costs, excluding down payment: roughly $5,300 to $15,200. That is about 1.06% to 3.04% of the price in this example.
Example: cash purchase at $500,000
- Title, escrow, and recording (including optional owner’s policy): $800 to $2,500
- Prorated taxes and inspections: $1,000 to $3,000
Estimated cash-buyer closing costs: roughly $1,800 to $5,500, or 0.36% to 1.10% of the price in this example.
Note: Your numbers will vary based on the provider, timing, and any credits you negotiate.
Timeline to closing
Cash purchases
- Typical close: 1 to 3 weeks, pending clear title and timely inspections.
- Fewer contingencies and no underwriting can speed things up.
Financed purchases
- Typical close: 30 to 45 days for most conventional loans.
- The appraisal, underwriting, and final approval steps drive the schedule.
Key documents you will review
- Loan Estimate: arrives within three business days of your loan application and outlines expected fees.
- Closing Disclosure: arrives at least three business days before signing and lists your exact cash to close.
How to reduce your closing costs
- Compare lenders. Get more than one Loan Estimate. Origination and processing fees vary.
- Ask for lender credits. Some lenders offer a credit in exchange for a slightly higher interest rate.
- Shop title and escrow. Request itemized quotes and ask which fees are negotiable.
- Discuss seller concessions. You can request closing cost credits, subject to market conditions and your loan program’s limits.
- Review optional items. Decline endorsements or services you do not need, and choose inspections based on property risks.
Buyer checklist for Bellingham
Use these fields to build your cash-to-close estimate and track your timeline.
- Purchase price:
- Earnest money deposit (amount already paid):
- Down payment (% and $ amount):
- Loan amount (purchase price – down payment):
- Estimated lender origination fee (use lender LE): $
- Estimated discount points (optional): $ (1 point = 1% of loan)
- Appraisal fee: $
- Credit report and admin fees (combined): $
- Title & escrow fee estimate: $
- Lender’s title insurance premium: $
- Owner’s title insurance premium (if buyer pays): $
- Recording fees & deed fees (Whatcom County estimate): $
- Prepaid homeowners insurance (first-year annual premium): $
- Prepaid property taxes (prorated + initial escrow deposit): $
- Prepaid interest (estimate from lender based on closing date): $
- HOA transfer/prorated fees: $
- Home inspection(s): $
- Survey (if required): $
- Misc: courier/notary/endorsements: $
- Total estimated closing cost (sum): $
- Estimated cash-to-close (Total closing cost + down payment – earnest money): $
Timeline fields:
- Target closing date:
- Typical lender processing time (from application):
- Title/escrow scheduling notes (document signing availability):
Questions to ask your lender and title company:
- Which closing costs can be financed or credited?
- Who will pay owner’s title insurance by local custom in Whatcom County?
- What are the exact recording fees and county taxes due at recording?
- What is the estimate for prepaid taxes, insurance, and the initial escrow deposit?
- Are any HOA fees or assessments required at closing, including document or transfer fees?
Local notes for Whatcom County
- Recording fees are set by the Whatcom County Auditor and are charged per document. Your title or escrow team can provide the exact numbers for your file.
- In Washington, REET is commonly a seller expense, though parties can negotiate who pays in the purchase contract.
- Who pays for the owner’s title policy can vary by market. Confirm with your title officer and make sure your contract reflects your agreement.
Ready to run your numbers?
If you want a clear, local estimate and a plan to make your offer competitive, let’s talk. With patient, step-by-step guidance and neighborhood-level insight across Whatcom County, you can move forward with confidence. Reach out to Samantha Roeder to schedule your free local market consultation.
FAQs
How much are buyer closing costs in Bellingham?
- For financed purchases, budget 2% to 5% of the price; for cash, 0.5% to 2%, depending on title, escrow, prepaids, and inspections.
Who pays Washington’s real estate excise tax (REET)?
- By custom in Washington, the seller typically pays REET, though this can be negotiated in the purchase contract.
Are closing costs lower for cash buyers in Whatcom County?
- Yes. Cash buyers avoid lender fees but still pay title, escrow, recording, prorated taxes, and any inspections they choose.
When will I know my exact cash to close?
- Your Loan Estimate arrives within three business days of applying, and your Closing Disclosure at least three business days before closing lists the final amount.
Can the seller help pay my closing costs?
- Yes, you can request seller concessions or credits; your ability to use them depends on market conditions and your loan program’s limits.
Do I need owner’s title insurance if I pay cash?
- A lender policy is not required for cash, but an owner’s policy is a common protection choice; confirm cost and coverage with your title company.
