How to Buy a House in Washington: A Homebuyer’s Guide
Updated: November 3, 2023
Advertising & Editorial Disclosure
According to Zillow, the average value of a house in Washington is around $610K, which is much higher than the national average. The average value of houses across the U.S. is roughly $358K, so purchasing a house in Washington is more expensive than in most states. The value of homes in Washington has gone up by 11% over the past year.
The small towns of Roslyn and Malaga are the cheapest places to buy a house in Washington, with average home values of $467,250 and $492,476, respectively. The affordability of a house is based on what you’re looking for in a home and how much you’re willing to spend. It’s important to understand the homebuying process to prevent being buried in debt from mortgage loans.
Choose an Ideal Location
In the course of your research, you’ll probably consider the famous phrase “location, location, location” at least once. The property’s location has a big impact on the cost of a real estate transaction. In addition to costs, you should also factor in the culture of the community, accessibility to amenities and activities and other elements that affect your quality of life.
Calculate Mortgage Rates
Homebuyers can pick from a range of mortgage lending choices, including conventional, VA, USDA and FHA loans. The prices, terms and eligibility requirements of these loans vary. It's crucial to consider the benefits, drawbacks and overall prices of these loans before starting the application process.
Prepare Down Payment Requirements
A down payment is the amount you spend out of pocket before buying a house. The amount you put down significantly affects the interest rate and total cost of your loan. The typical down payment is 20%, although your down payment requirements may vary depending on your mortgage loan.
Get Pre-Approved for a Mortgage
Borrowers can determine their creditworthiness for a mortgage loan through prequalification and pre-approval. Your basic financial information will be required for prequalification, although it might not be as extensive as a pre-approval, which is a much more in-depth assessment of your financial capabilities.
Conduct a Home Inspection
To guarantee that your new home is safe and that there are no hidden damages within it, a home inspection is necessary. Through a home inspection, you can evaluate the house’s structure, plumbing, mechanical systems and much more. This helps ensure that you won’t encounter unexpected problems in your home after you buy it.
Close Your Mortgage Loan
When you reach this step, it means you’re one step closer to becoming a homeowner. Closing your mortgage involves a lot of paperwork and more expenses. Before signing forms, contracts and other documents, carefully read the terms and go over the details. Since closing costs involve several fees, make sure to account for them in your budget.
Washington Homebuying Details
There are a lot of similarities with the homebuying process in all the states. However, some intricacies may be present in every state. These details can help you decide if you want to purchase a house in Washington.
Dual agency
A single real estate agent can act as both the buyer and the seller's representative. In Washington, as long as both the buyer and the seller have written authorization, it is entirely lawful.
Seller's disclosure
A seller must include a property disclosure statement that details the house's issues as well as its construction, improvements and additions.
Property taxes
The effective property tax rate in Washington is 0.94%. You need to pay your property tax every year. Upon buying the house, your tax will be calculated from the date of the mortgage loan closing up to the end of the tax year.
Natural factors
Certain natural phenomena may be common in Washington. For example, the state spends a significant amount of money on flood management and damage control. The Department of Ecology has estimated that there can be more than 10 flood events in a year in Washington.
Frequently Asked Questions About Buying a Home in Washington
MoneyGeek answered commonly asked questions about purchasing a house in this state. Our answers may give you more information on how to buy a home in Washington. These can help you have a better understanding of the state's property costs and how this purchase may affect your budget.
Before buying a house, it’s important to ask yourself these questions:
- What’s my budget? Can I afford a home in Washington?
- How much can I put down as a down payment on a house?
- Where is the best place to buy a home in Washington?
It depends on your financial capacity to purchase a home in Washington and what you’re looking for in a home. Take note that the average value of a house in Washington is more expensive than the national average. If your budget can accommodate the costs, you can consider buying a house in this state.
Buying a house in Washington can be a good investment. Within a year, the value of a house in Washington has increased by 11%.
Through pre-approval, you can determine your creditworthiness for a mortgage loan. It can give you an idea of how much income you need to buy a house in Washington.
In Washington, the property tax rate is 0.94%.
In Washington, the cheapest town to buy a home is Roslyn. The average value of a home in Roslyn is $467,250.
sources
- American Society of Home Inspectors. "Home Inspection Requirements for Washington." Accessed October 23, 2022.
- Consumer Financial Protection Bureau. "Get a Prequalification or Preapproval Letter." Accessed October 23, 2022.
- Consumer Financial Protection Bureau. "Mortgage Closing Checklist." Accessed October 23, 2022.
- Tax Foundation. "Taxes In Washington." Accessed October 23, 2022.
- U.S. Department of Housing and Urban Development. "Homeownership Assistance: Washington." Accessed October 23, 2022.
- USDA Rural Development. "Single Family Housing Direct Home Loans in Washington." Accessed October 23, 2022.
- USDA Rural Development. "Washington." Accessed October 23, 2022.
- Washington State Department of Ecology. "Floods & Floodplain Planning." Accessed October 23, 2022.
- Washington State Housing Finance Commission. "Home Advantage Program." Accessed November 23, 2022.
- Washington State Housing Finance Commission. "Opportunity Downpayment Assistance Loan Program." Accessed November 23, 2022.
- Zillow. "United States Home Values." Accessed October 23, 2022.
- Zillow. "Washington Home Values." Accessed October 23, 2022.