Understanding Home Buying Costs in Maple Valley

Buying a home in Maple Valley is exciting, but the real question most buyers ask is simple: how much cash do you actually need to close? You want a clear number, not guesswork, so you can plan with confidence. In this guide, you’ll see what typical buyers pay here, how down payments and earnest money work, what closing costs include, and sample cash-to-close estimates at common price points. Let’s dive in.

What you pay at purchase

When you buy in Maple Valley, your upfront costs usually fall into several buckets:

• Down payment: Your lump sum toward the price. Your loan program determines the minimum.
• Earnest money (EMD): A deposit with your offer that shows good faith. It’s credited to you at closing if the sale completes.
• Closing costs: Lender and third-party fees for the loan and settlement services.
• Prepaids and escrow deposits: Upfront items like homeowner’s insurance, prepaid interest, and initial escrow for taxes and insurance.
• Ongoing costs later: Monthly mortgage payment, property taxes after closing, HOA dues, utilities, and maintenance.

Down payment options

You have several paths depending on your loan program and goals:

• Conventional: Many buyers can put as little as 3 percent down on qualifying programs. Some lenders require 5 percent for typical conforming loans.
• FHA: Minimum 3.5 percent down if you meet FHA guidelines.
• VA: 0 percent down for eligible veterans and active-duty service members.
• USDA: 0 percent down in eligible areas.

Lower down payments reduce your upfront cash but usually mean mortgage insurance and higher monthly payments. At 20 percent down, you avoid conventional PMI and may get better rate options. Ask your lender to model 3, 5, 10, and 20 percent down so you can compare monthly payments, mortgage insurance, and total cash to close.

Earnest money basics

In Washington, earnest money commonly ranges from about 0.5 percent to 2 percent of the purchase price. Many offers use roughly 1 percent as a starting point, and hotter conditions can push higher. Your contract will state when the deposit is due. It is often delivered with the offer or within a few business days of mutual acceptance.

Earnest money is held by the escrow or title company and applied to your costs at closing. If you cancel under your contract contingencies, it is typically returned. If you default outside the terms, it can be forfeited. Keep your EMD funds liquid until escrow requests them, and always verify wiring instructions directly with escrow to avoid fraud.

Typical closing costs

A good rule of thumb for buyer closing costs is about 2 percent to 5 percent of the purchase price. Your actual number depends on your lender, rate and points choices, and the property type. Common items include:

• Lender fees: Origination or points, underwriting and processing. Origination can range around 0.25 percent to 1.5 percent of the loan amount.
• Appraisal and credit report: Appraisals often range from about $450 to over $1,000 depending on size and complexity; credit reports are typically modest.
• Title and escrow: Lender’s title insurance premium, escrow or settlement fee, and title-related services.
• Recording: County recording charges for your deed and mortgage documents.
• Third-party and association items: Possible HOA transfer or move-in fees, flood certification, and any specialty inspections.
• Inspections: General home inspection and any extras, usually paid at the time of service.

Your lender will provide a Loan Estimate with itemized fees, and escrow can provide a preliminary closing statement for local charges and proration.

Prepaids and escrow deposits

These are upfront items that cover upcoming obligations:

• Prepaid interest: Mortgage interest from the day your loan funds to the end of the month. The amount depends on your closing date and daily interest.
• Homeowner’s insurance: Most lenders require your first-year premium paid at closing. Premiums vary by property and coverage.
• Initial escrow deposit: Lenders often collect 1 to 3 months of taxes and insurance to start your escrow account. Many require around 2 months, but it varies by program.
• Property tax proration: King County prorates property taxes at closing. You might receive a credit or owe an amount based on the closing date and what the seller has already paid.
• HOA dues: If applicable, you may reimburse the seller for a prorated share and pay any HOA transfer or move-in fees.

Washington and King County notes

As you plan your numbers for Maple Valley, keep these local guidelines in mind:

• Real estate excise tax (REET): In Washington, REET is generally paid by the seller. Confirm any negotiated exceptions in your contract.
• Title insurance custom: Sellers often pay for the owner’s policy. If you finance, you typically pay for the lender’s policy. Check with your title and escrow team to confirm.
• Escrow handling: Earnest money is usually deposited with escrow or title and applied at closing per contract terms.
• Recording fees: Buyers pay county charges to record the deed and loan documents. Fees vary by county and document count.
• Tax proration: King County prorates property taxes at closing based on timing and prior payments.

Cash-to-close examples

These examples show how down payment, earnest money, closing costs, and prepaids can add up. They are illustrative only and not quotes. Ask your lender for a Loan Estimate and your escrow team for a preliminary closing statement to dial in your numbers.

Scenario A: $600,000 purchase

• Down payment options:
  • 3 percent: $18,000
  • 5 percent: $30,000
  • 20 percent: $120,000
• Earnest money at 1 percent: $6,000
• Estimated closing costs at 2.5 percent to 4 percent: $15,000 to $24,000
• Prepaids and escrow examples:
  • Homeowner’s insurance: $900
  • Prepaid interest: $800
  • Initial escrow deposit: $1,200
  • Property tax proration example: $1,500
• Sample cash to close at 5 percent down:
  • Down payment: $30,000 minus $6,000 EMD credit = $24,000 remaining
  • Closing costs: $18,000 example
  • Prepaids and escrow: ~$4,400
  • Total cash to close: ≈ $46,400

Scenario B: $800,000 purchase

• Down payment options:
  • 3 percent: $24,000
  • 5 percent: $40,000
  • 20 percent: $160,000
• Earnest money at 1 percent: $8,000
• Estimated closing costs at 2.5 percent to 4 percent: $20,000 to $32,000
• Prepaids and escrow examples:
  • Homeowner’s insurance: $1,200
  • Prepaid interest: $1,100
  • Initial escrow deposit: $1,600
  • Property tax proration example: $2,000
• Sample cash to close at 5 percent down:
  • Down payment: $40,000 minus $8,000 EMD credit = $32,000 remaining
  • Closing costs: $24,000 example
  • Prepaids and escrow: ~$5,900
  • Total cash to close: ≈ $61,900

Scenario C: $1,000,000 purchase

• Down payment options:
  • 3 percent: $30,000
  • 5 percent: $50,000
  • 20 percent: $200,000
• Earnest money at 1 percent: $10,000
• Estimated closing costs at 2.5 percent to 4 percent: $25,000 to $40,000
• Prepaids and escrow examples:
  • Homeowner’s insurance: $1,800
  • Prepaid interest: $1,400
  • Initial escrow deposit: $2,000
  • Property tax proration example: $2,500
• Sample cash to close at 10 percent down:
  • Down payment: $100,000 minus $10,000 EMD credit = $90,000 remaining
  • Closing costs: $30,000 example
  • Prepaids and escrow: ~$7,700
  • Total cash to close: ≈ $127,700

Plan your cash to close

Use this step-by-step checklist to stay organized:

1. Get prequalified or preapproved and request a Loan Estimate that itemizes your costs.
2. Confirm earnest money amount and timing with your agent and escrow. Keep funds liquid until deposit is due.
3. Ask your lender to model multiple down payment options and show the monthly payment and PMI impact.
4. Gather quotes for homeowner’s insurance, any HOA transfer fees, and inspection costs.
5. Compare lender fees and ask about lender credits versus discount points if your goal is to reduce upfront cash.
6. Request an estimated closing statement from escrow that includes King County recording fees and property tax proration.
7. Keep a buffer of about 2 percent to 5 percent for unexpected items, wire or cashier’s check fees, or last-minute prorations.
8. Verify all wiring instructions with escrow by phone using a verified number to avoid wire fraud.

Ways to manage upfront cash

A few levers can help you fine-tune your numbers:

• Seller credits: If negotiated, seller-paid credits can reduce your cash due at closing, subject to loan program limits.
• Rate and points trade-offs: Ask your lender about using lender credits to offset closing costs or paying points to reduce the rate. Compare both against your timeline in the home.
• Down payment adjustments: Shifting from 10 percent to 5 percent can lower cash to close, but you may add PMI. Ask your lender to quantify the trade-off.
• Closing date timing: Prepaid interest depends on when you close in the month. Talk to your lender about how timing affects that line item.
• Accurate estimates: Get both a Loan Estimate and an escrow fee quote early, then update them once you are under contract.

After closing: ongoing costs

Your cash to close covers the purchase, but homeownership includes continuing expenses:

• Monthly mortgage payments that include principal, interest, and often escrowed taxes and insurance.
• Property taxes after closing, prorated by King County rules.
• HOA dues if applicable, plus any special assessments.
• Utilities and routine maintenance.

Next steps

Buying in Maple Valley is more predictable when you have the right numbers and a local team guiding each step. Ask your lender for a current Loan Estimate based on your credit, rate options, and chosen down payment. Request a preliminary closing statement from escrow with exact King County recording fees and tax proration for your anticipated closing date. Confirm who pays the owner’s title policy in your deal, and check for any HOA transfer or move-in fees. Finally, verify wiring instructions directly with escrow for safety.

If you want a clear, personalized plan for your budget and timeline, reach out to the Tamara Paul Group. Our education-first approach and local expertise can help you move forward with confidence in Maple Valley.

FAQs

Who pays Washington’s real estate excise tax when buying in Maple Valley?

• In most Washington transactions the seller pays REET, but confirm any negotiated exceptions in your purchase contract with your agent and escrow.

How much earnest money do I need and when is it due?

• Earnest money commonly ranges from about 0.5 percent to 2 percent of price and is often due with the offer or within a few business days after mutual acceptance.

Is my earnest money refundable if I cancel?

• If you cancel under contract contingencies like inspection, appraisal, or financing, it is typically refunded; if you default outside the terms, it may be forfeited.

Can a seller help pay my closing costs in Maple Valley?

• Yes, you can negotiate seller credits toward closing costs, subject to your loan program’s limits on concessions.

Do I still need cash at closing if I already wired earnest money?

• Yes, your earnest money is credited to you at closing, but you still need to fund the remaining down payment and closing costs unless credits cover the balance.