Photo:  Lake Padden / June 13, 2026

One of the biggest mistakes I see home buyers make is focusing entirely on the down payment and forgetting about everything else.

They spend months saving, getting pre-approved, and searching for the right home. Then they find it, write an offer, and suddenly realize there are additional costs involved in getting the keys.

The good news is none of these costs should be a surprise.

With a little planning, you can understand what to expect before you ever write an offer.

If you're thinking about buying a home in Bellingham or anywhere in Whatcom County, here's what you should know.

It's Not Just the Down Payment

When most buyers think about purchasing a home, the first thing that comes to mind is the down payment.

But there are several other expenses that come into play during the transaction.

These may include:

• Lender fees

• Appraisal costs

• Escrow and title fees

• Recording fees

• Home inspections

• Homeowners insurance

• Prepaid property taxes

• HOA transfer fees (if applicable)

The exact amount varies depending on the property, loan program, lender, and timing of the transaction.

That's why I always encourage buyers to look at the entire picture, not just the monthly payment.

The Costs Most Buyers Forget to Budget For

I've worked with buyers who had enough saved for their down payment but hadn't accounted for inspections, prepaid taxes, insurance deposits, or lender fees.

Fortunately, these costs are usually predictable.

Home Inspection

One of the first expenses buyers encounter is the home inspection.

Most buyers choose to have a professional inspection performed before moving forward with the purchase. Depending on the property, you may also want a sewer scope, roof inspection, or other specialty inspections.

You may also have water quality testing or a sewer scope...maybe even a hot tub.  All these can be very important and can add up.

While these aren't technically closing costs, they are part of the overall investment and should be budgeted for upfront.

Lender Fees

Every lender charges fees associated with processing and underwriting a loan.

These can include:

• Loan origination fees

• Underwriting fees

• Credit report fees

• Appraisal fees

One reason I encourage buyers to talk with multiple lenders is that fees can vary more than people realize.

A lower interest rate doesn't always mean a lower overall cost.

Escrow and Title Fees

Washington is an escrow state, which means a neutral third party handles the closing process.

The escrow company coordinates documents, collects funds, works with the lender, and ensures ownership transfers properly.

In most Whatcom County transactions, buyers and sellers typically share certain escrow-related expenses, although every transaction is negotiable.

Prepaid Taxes and Insurance

This is one of the most overlooked items.

Most lenders require buyers to prepay portions of their property taxes and homeowners insurance at closing.

Because these funds are collected upfront, they can add a meaningful amount to the cash needed to close.

A Little Insider Tip

Here's something many buyers don't know.

Two people can purchase identical homes at identical prices and end up with different closing costs simply because they closed on different days of the month.

Why?

Because mortgage interest is collected in advance from your closing date through the end of that month.

The timing of your closing can impact how much cash you'll need at the table.

It's not usually a huge difference, but it's one more reason why understanding the numbers early matters.

What Buyers Don't Pay in Washington

There is some good news.

One question I hear regularly is whether buyers pay Washington's Real Estate Excise Tax, commonly called REET.

The answer is typically no.

In Washington State, REET is generally paid by the seller.

Likewise, sellers traditionally pay for the owner's title insurance policy in most Whatcom County transactions.

Every purchase agreement is negotiable, but these are common local practices that help reduce some of the buyer's expenses.

Can Sellers Help With Closing Costs?

Sometimes.

Depending on market conditions, the property, and the seller's motivation, it may be possible to negotiate a seller credit toward your closing costs.

In a highly competitive multiple-offer situation, asking for concessions may not be realistic.

In other situations, it can be an effective strategy that saves you thousands of dollars.

This is one of those areas where having a local agent who understands the market can make a significant difference.

My Advice

The buyers who have the smoothest transactions aren't necessarily the ones with the biggest down payments.

They're the ones who understand the numbers before they start house hunting.

Before you fall in love with a property, it's worth understanding exactly what buying that home will cost—not just the mortgage payment, but everything that comes with getting the keys.

A good lender and a good Realtor should be helping you understand those numbers long before you're sitting at the closing table.

Thinking About Buying?

Whether you're a first-time buyer, relocating to Whatcom County, or simply exploring your options, I'd be happy to help you understand what your numbers might look like.

No pressure. No obligation.

Just a conversation about your goals, your budget, and what to realistically expect before you start writing offers.

The more prepared you are, the easier the entire process becomes.

— Sean Hackney

NextHome NW Living

Bellingham & Whatcom County Real Estate