Do you plan to buy a home in Washington State sometime soon? If so, you probably have questions about the many steps that are involved. You’ll find answers here. Below, we’ve provided a step-by-step overview of the home buying process in Washington State.
Note: Your home buying experience may differ slightly from the one outlined below, due to a variety of factors. With that being said, most home buyers in Washington State will go through most of the steps outlined below.
When you buy a home in Washington State, you’ll encounter a variety of upfront expenses, including down payment and closing costs. In a typical real estate transaction, these costs must be paid on or before the day of closing.
Depending on the type of home loan you use, your down payment might range from 3% to 20% of the purchase price. An exception to this is the VA loan program, which offers 100% financing.
You’ll also have to pay closing costs, and these can add up to thousands of dollars. In some cases, the seller might agree to pay the buyer’s closing costs, or the mortgage lender might offer a “credit” to cover them. But the point is, most home buyers encounter some form of closing costs when buying a house in Washington State. So start saving now.
This is an optional step in the Washington State home buying process, but we highly recommend it. Having a basic housing budget on paper will help you shop accordingly.
The good news is, you don’t have to be a financial planner to create a basic home buying budget. You just need to examine your monthly income and your recurring expenses.
Write down your monthly net income (or take-home pay), and then subtract all of your non-housing monthly expenses from that figure. You can exclude your current rent or mortgage payment from this calculation because the point here is to determine how much you can spend on your housing costs going forward.
Here’s a more in-depth look at the budgeting process.
Mortgage lenders will review your credit reports and scores to see how they’ve borrowed and repaid money in the past. This is a standard part of the home buying process in Washington State. You can review these items for yourself before you apply for a loan. Having good credit improves your chances of qualifying for a home loan. It could also help you secure a lower mortgage rate.
You can get your credit reports for free by visiting AnnualCreditReport.com (the official website). On other sites you might have to pay a small fee to obtain your scores, usually around $20 per score.
Elsewhere on our website, you’ll find an in-depth review of the different types of mortgage loans available these days. Here’s the short version:
You have two primary questions to answer when choosing a type of loan: (1) Do you want to use a fixed or adjustable-rate mortgage? (2) Do you want to use a conventional or government-backed loan?
The 30-year fixed-rate mortgage is the most popular type of home loan in Washington State. That’s because it offers the most stability and predictability. With a fixed-rate loan, your interest rate and monthly payments will stay the same for the entire term.
Adjustable-rate mortgage (ARM) loans work well in certain situations, particularly when the buyer expects to sell the home and move within a few years. ARM loans usually have lower rates than their fixed counterparts, at least for the first few years.
If you’re planning to make an all-cash offer on a home, you can skip this step. It doesn’t apply to you. But if you’re like most home buyers, and you need a loan to complete your purchase, then a mortgage pre-approval would be in order. It’s the next logical step in the Washington State home buying process.
Pre-approval is when a lender reviews your financial situation (and documents) to determine how much they are willing to lend you. Knowing this enables you to shop for a home accordingly, within a realistic price range. But that’s not the only benefit. Having a pre-approval letter also shows sellers that you’re a serious buyer, and that’s important in a competitive real estate market.
It’s a good idea to have professional help when buying a home in Washington State, especially if it’s your first time. The seller usually pays the real estate agent commissions. So, as a buyer, there’s really no reason to fly solo. An experienced agent can help you navigate the latter steps of the home buying process, especially #7 and #8 below.
For many people, house hunting is the most exciting step in the purchasing process. But you’ll notice it’s step #7 on our list. There’s a reason for this. If you follow the steps outlined here, you’ll have a budget on paper and a pre-approval from a lender — before you start house hunting. This is a logical sequence when buying a home in Washington State. Once you’ve completed the preliminary steps, you’ll be able to shop confidently for homes that fall within your price range.
When you find a home that meets your needs, it’s time to make an offer. But how much should you offer? It’s wise to base your offer on comparable sales, or “comps.” These are similar properties that have been sold recently in the same area. Consider current market conditions when making an offer. For instance, are you in a sellers’ market, a buyers’ market, or somewhere in between? Remember, the seller’s asking price might be realistic or inflated. You won’t know until you review the comps and study the market. When the offer has been accepted, the buyer and seller have entered escrow.
An earnest money deposit is a sum of money a buyer submits as part of the offer or shortly after entering escrow. In general, it shows the seller that the buyer is serious about moving forward with the purchase.
This deposit is typically handled as part of the early contract and escrow stage of the transaction. Buyers should understand how it fits into the overall offer process and make sure they follow any deadlines or instructions that apply.
You’re not required to have an inspection when buying a home in Washington State. But it’s still a wise investment, and therefore an important step in the buying process. A home inspection will give you valuable insight into the property’s true condition. It will also help you identify potential problems, maintenance issues, damage, etc.
Home inspectors typically examine the electrical system, the foundation, heating and cooling, plumbing and more. In Washington State, property inspections usually cost around $400-$700 for an average-sized home. That’s a small price to pay for peace of mind.
After the inspection stage, the transaction may move into the appraisal process. In general, an appraisal is used to assess the home’s value as part of the overall purchase and financing timeline.
This step typically takes place before closing and can be an important part of keeping the transaction moving forward. Buyers should be aware that it is a separate step from the home inspection and serves a different purpose.
A homeowner’s insurance policy (also known as hazard insurance) protects you against financial losses related to your home. A thief steals your expensive electronics. Fire destroys part of your house. A tree branch crashes through the roof. A standard homeowner’s policy can protect you from these and other losses. In Washington State, the average cost of home insurance is about $1,539 per year for $300,000 in dwelling coverage. You can lower the premium by choosing a higher deductible if desired. Mortgage lenders usually require the first year’s premium to be paid by the closing date.
Immediately before closing, buyers often complete a final walk-through of the property. This is generally a last opportunity to look over the home before the transaction is finalized.
The final walk-through is part of the closing timeline and helps buyers feel prepared for the last step in the process. It usually comes after the earlier stages have been completed and just before the paperwork is signed.
Closing is the final step in the Washington State home buying process. It’s also referred to as a settlement. This process involves a lot of paperwork and the final distribution of funds. The real estate agents receive their commissions. The seller gets paid, if applicable. The lender’s fees will be paid. You’ll sign a series of documents. And, ultimately, you’ll walk away with the keys to your new house!
If you are in need of the assistance of a seasoned mortgage company, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, California and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria, and we’d love to help. Please contact us if you have mortgage-related questions, or visit our website to get an instant rate quote.
Start by evaluating your finances, including checking your credit score, savings, and monthly budget to determine how much you can afford.
Down payments typically range from 3% to 20%, depending on the loan type. For example, FHA loans require a minimum of 3.5%, while VA and USDA loans may offer 0% down. Conventional loans allow a minimum down payment of 3%, though private mortgage insurance (PMI) would be required for down payments less than 20%.
As of mid-2025, the average home price in Washington is $611,096, as per Zillow, marking a 0.4% increase year-over-year.
Most lenders prefer a score of 620 or higher, but FHA loans may accept scores as low as 580 with 3.5% down.
Yes, getting pre-approved shows sellers you’re serious and helps clarify your budget. It’s more reliable and formal than pre-qualification.
You’ll need to show the lender photo ID, pay stubs, tax returns, bank statements, and employment verification.
While not required, a local real estate agent can help you navigate Washington’s housing market, negotiate offers, and manage paperwork.
Expect to pay 2% to 5% of the home’s price for closing costs, which include fees like title insurance, inspections, and legal fees.
No, but it’s highly recommended to uncover hidden issues before committing to the purchase.
An earnest money deposit shows you’re committed to the purchase. It’s usually 1% to 3% of the home price and is often applied to your closing costs.
At closing, you’ll sign final documents, pay closing costs, and officially take ownership of the home.
Our loan officers are ready and waiting to help you apply for your home loan.
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