How Much Do I Need in Savings to Buy a Home in Washington State?
This is one of the first questions almost every buyer asks me—and usually with a little hesitation. Most people assume the answer is a scary number, or that they’re way behind. In reality, many buyers are closer than they think… they just don’t have clear information yet.
So let’s talk through what you actually need in savings to buy a home in Washington State—without the overwhelm.
The Short Answer: It Depends (But Not as Much as You Think)
There isn’t one magic number that fits everyone. The amount you need depends on the price range you’re buying in, your loan type, and how comfortable you want to feel financially after closing.
That said, most buyers need savings for three main things:
A down payment
Closing costs
A little extra cushion
Let’s break each one down.
The Down Payment: What Most People Focus On
This is the part most buyers stress about—and it’s also where a lot of misinformation lives.
You do not need 20% down to buy a home in Washington State.
Many buyers qualify for:
3–5% down with a conventional loan
Higher down payments (10–20%) if they want lower monthly payments or more competitiveness
VA or other specialty loans, depending on eligibility
The “right” down payment isn’t about hitting a perfect number—it’s about what works for your comfort level, monthly budget, and long-term plans.
Closing Costs: The Part People Forget to Plan For
Closing costs are often the surprise expense for buyers.
In Washington State, closing costs typically run about 2–3% of the purchase price. These cover things like:
Lender fees
Title and escrow
Prepaid items like taxes and insurance
Sometimes sellers contribute toward closing costs, but that depends on the market and the specifics of the offer—so it’s best to plan as if you’ll be covering them yourself.
Cash Reserves: What Helps You Sleep at Night
Even if a loan program doesn’t require extra savings, I always encourage buyers to plan for some cushion beyond their down payment and closing costs.
Why?
Moving expenses add up
Homes always come with small surprises
It’s a lot less stressful not to drain every account to zero
This isn’t about perfection—it’s about feeling steady and confident going into homeownership.
What This Looks Like in Real Life
Let’s use a simple example.
For a $600,000 home, a buyer might plan for:
5% down: $30,000
Estimated closing costs: $12,000–$18,000
Extra savings cushion: $5,000–$10,000
That puts total savings somewhere in the $47,000–$58,000 range, depending on the situation.
Some buyers do more, some do less—but this gives you a realistic starting point.
Common Myths I Hear All the Time
“I need 20% down.”
Nope. Helpful in some cases, but absolutely not required.
“I should wait until everything is perfect.”
Most buyers don’t feel 100% “ready.” The goal is prepared—not perfect.
“If I talk to a lender or realtor, I’m committing.”
You’re not. Early conversations are just about information and planning.
So… How Much Should You Have Saved?
Enough to buy comfortably—not just qualify on paper.
For some buyers, that’s the minimum required to get started. For others, it’s more about peace of mind. Both approaches are valid.
The most important thing is understanding your numbers and your options before you’re in a time crunch or feeling pressured.
If buying a home is something you’re considering—whether it’s this year or a few years from now—I’m always happy to talk through what that might look like for you. No pressure, no timelines, just honest guidance.
