Buying a Home in Seattle: 5 Mortgage Questions to Ask Before You Make an Offer

Before making an offer in Seattle or elsewhere in Washington, understand your cash needed at closing, total monthly housing expenses, and loan terms. These five questions can help you prepare.

1. What Are My Closing Costs and Cash to Close?

Closing costs can include lender charges, appraisal, title, escrow, recording, and other transaction fees. Prepaid taxes, insurance, and initial escrow deposits also affect the amount you need to bring to closing.

Ask for an itemized estimate that accounts for your down payment, earnest money already paid, and any eligible seller or lender credits. Seller credits are subject to loan-program limits; lender credits may involve a higher interest rate.

Purchase closing costs generally cannot simply be added to the loan amount, although some program-specific fees may be financed. Review your Loan Estimate and Closing Disclosure and ask about any changes.

2. How Is My Interest Rate Determined?

Your available rate depends on your credit profile, down payment, loan amount and program, property type, occupancy, points or credits, and market conditions. The rate-lock period can also affect pricing.

Compare the interest rate, annual percentage rate (APR), upfront costs, and lock terms together. APR reflects interest and certain loan costs, but does not include every homeownership expense. Confirm whether a quoted rate is locked and when the lock expires.

3. What Will My Monthly Housing Expenses Include?

Your mortgage payment includes principal and interest and may include mortgage insurance and escrow collections for property taxes and homeowners insurance.

HOA dues are usually paid separately to the association. Also budget for utilities, maintenance, any required flood insurance, and potential special assessments. Taxes, insurance premiums, and HOA dues can change over time.

4. Which Loan Structure Fits My Plans?

Fixed-rate mortgages

For a standard fully amortizing fixed-rate mortgage, the interest rate and scheduled principal-and-interest payment remain stable. Your total housing payment can still change as taxes, insurance, or other charges change.

Adjustable-rate mortgages (ARMs)

An ARM typically has an initial fixed-rate period followed by periodic adjustments. Ask about the index, margin, adjustment frequency, and rate caps, and review how much the payment could increase.

An initial rate may be lower than a comparable fixed rate, but that is not guaranteed. Do not rely on being able to refinance before an adjustment.

5. Are There Any Early-Payoff Restrictions?

Ask whether the loan includes a prepayment penalty, how it works, and when it expires. Review the Loan Estimate, Closing Disclosure, and loan documents where applicable, particularly for investment-property or specialty financing.

Also ask how to apply extra payments directly to principal.

Prepare Before Making an Offer

A mortgage pre-approval can help clarify your potential purchasing range, based on the information and documents reviewed. It is conditional and is not final loan approval. Property eligibility, appraisal, underwriting, and changes to your finances can affect the outcome.

Sam Kader
Mortgage Broker | NMLS #130505
Pacific Coast Financial LLC | NMLS #78982
sam@pacificcoastfin.com

For educational purposes only. This content is not a rate quote, loan approval, or commitment to lend. Rates, APRs, fees, and program availability are subject to change. All loans are subject to borrower qualification, property eligibility, underwriting guidelines, and lender approval. Pacific Coast Financial LLC is a mortgage broker licensed in Washington State.