The Number Most Buyers Get Wrong
The down payment is the number buyers focus on — but it is rarely the number that determines whether they can actually close. Closing costs, prepaid expenses, reserve requirements, and post-close liquidity all factor into the real cost of buying in Seattle.
A buyer targeting a $1.5 million home who has $300,000 saved (a 20% down payment) may still fall short if they haven't accounted for $30,000–$45,000 in closing costs and a lender requiring six months of reserves in the bank after closing.
What a Down Payment Looks Like by Price Tier
At the $750,000 to $1.2 million range — entry-level Seattle — most conventional buyers bring 10 to 20 percent down. Jumbo loan minimums typically require 20% at this tier, though some lenders will work with 10 to 15 percent at slightly higher rates.
From $1.5 million to $3 million, 20 percent is standard, and many lenders require a larger liquid asset position. Above $3 million, cash offers and 25 to 30 percent down payments are common, particularly in off-market transactions where seller confidence in a buyer's ability to close is paramount.
Closing Costs in Seattle
Buyers in Seattle should plan for 2 to 4 percent of the purchase price in closing costs. On a $1.5 million home, that is $30,000 to $60,000 in addition to the down payment. These costs include title insurance, escrow fees, lender origination fees, prepaid property taxes and insurance, and recording fees.
Washington State has no income tax but does have a real estate excise tax (REET) paid by the seller. Buyers are not responsible for REET, but should understand it as a factor in seller net calculations during negotiation.
Reserves and What Lenders Look For
Most jumbo lenders require two to twelve months of reserves — meaning cash or liquid assets remaining after closing that cover your projected monthly housing payment. At the luxury level, twelve months of reserves is not unusual.
Reserves are not the same as the down payment. They must remain accessible and liquid after the transaction closes. A buyer who depletes their savings to close a purchase will often fail to qualify even if the down payment itself is sufficient.
Pre-Approval vs. Pre-Qualification
In Seattle's market, a pre-qualification is not sufficient to compete for a desirable home. Sellers and their agents expect a fully underwritten pre-approval from a reputable lender — and for luxury properties, proof of funds for the down payment is often requested before a showing is confirmed.
Work with a lender who has closed transactions at your target price point in Seattle. Jumbo loan underwriting is meaningfully different from conventional lending, and a lender unfamiliar with the nuances can slow or derail a transaction at the worst possible moment.
What Buyers Often Underestimate
Move-in costs, immediate repairs or improvements, and carrying costs during any renovation are routinely underestimated. A $2 million home that needs $150,000 in updates before it feels right is a $2.15 million decision — and that $150,000 needs to come from somewhere other than the mortgage.
Property taxes in King County are also a meaningful line item. A $2 million Seattle home typically carries annual property taxes of $15,000 to $25,000 depending on assessed value and exemptions. Buyers should model their full monthly cost of ownership — not just the mortgage payment.
Buying in Seattle takes more preparation than most buyers expect — but the outcome, for the right buyer with the right guidance, is one of the strongest long-term wealth decisions in the Pacific Northwest.
