Mortgage lender closing cost rankings in Washington (2025)

Washington is a non-judicial foreclosure state that primarily uses deeds of trust rather than mortgages, allowing lenders to foreclose through a trustee sale process without court involvement. The standard foreclosure timeline runs roughly 190 days from default notice to sale. Washington is not an attorney closing state; licensed escrow officers — typically employed by title or escrow companies — handle closings rather than attorneys. The state imposes a Real Estate Excise Tax (REET) on the seller, structured on a graduated rate scale based on sale price; as of 2020, the rate tiers range from 1.1% on the first $500,000 up to 3.0% on amounts above $3 million. Washington follows a prior-approval system for title insurance rate regulation, meaning insurers must file rates with the Office of the Insurance Commissioner and receive approval before use. Prepayment penalties on residential mortgages are restricted under state law. Washington's Department of Financial Institutions licenses and oversees mortgage lenders and loan originators operating in the state, providing a public license lookup and complaint process for consumers.

Conventional loans dominate Washington's purchase market, accounting for 74.2% of originations (50,951 loans) in 2024, consistent with the state's high median loan amounts and relatively affluent borrower pool. FHA loans represent 14.1% of volume (9,656 originations), carrying notably higher median total costs of $15,732 — largely driven by upfront mortgage insurance premiums. VA loans make up 11.6% of originations (7,954 loans), a meaningful share supported by the significant active-duty and veteran population near Joint Base Lewis-McChord and Naval Station Kitsap. USDA loans are rare at just 0.1% (93 originations), reflecting Washington's predominantly urban and suburban geography.