is a great place to buy a house if you’re looking for a high standard of living—and don’t mind paying for it. It boasts the highest-ranked economy in the United States, and jobs are readily available. The Evergreen State is also a wonderful place to live for nature lovers and anyone that enjoys outdoor activities and sports.

If you want to carve yourself out a little piece of the northwest paradise, though, you’ll need to be prepared for real estate prices well above the national average. Houses in Washington sell for an average of $573,071, which is about 153% of the national average.

Fortunately, the home and auto insurance super-app

Jerry

is here to break down everything you need to know about buying a house in Washington.

RECOMMENDED

Compare auto insurance policies

No spam or unwanted phone calls · No long forms

ZIP Code

Find insurance savings

Figure out your finances

Before you can start shopping for a house, first evaluate your finances. To figure out what sort of house you can afford, you’ll need to know your credit score, debt-to-income (DTI) ratio, what size down payment you can afford, and what additional costs accompany buying a house in Washington.

Check your credit score

Your credit score is perhaps the most important factor that affects what sort of mortgage loan you’ll qualify for. Before you do anything else, you should check your credit score. You can do this using a free online credit report service, such as Credit Karma.

The better your credit score is, the better mortgage rates you can get approved for. Ideally, your credit score should be between 670 and 739. In order to be approved at all, though, you’ll need a credit score of at least 620.

If your credit score isn’t quite where it needs to be, you still have options. There are programs that offer

financial assistance

to individuals looking to buy a house in Washington. Here are some good resources for homebuyers with low credit:

The

Federal Housing Administration (FHA)

will sometimes grant mortgage loans to home buyers with credit as low as 523.

The

Washington State Housing Finance Commission

offers several types of second mortgages that borrowers won’t need to pay back right away. Some applicants are approved for as much as $55,000.

MORE: How to write a bill of sale

Calculate your debt-to-income (DTI) ratio

Your debt-to-income ratio, or DTI, also plays a big role in deciding whether you’ll be approved for a mortgage loan. Your DTI measures the ratio between your income and your expenses. The higher your DTI is, the less disposable income you have and the less likely you are to get approved for a good mortgage.

A low DTI, on the other hand, means that you bring in significantly more money than you have to spend each month. A low DTI will help you get approved for mortgages more easily.

To calculate your DIT, add up all your monthly recurring payments and divide by your total monthly income before taxes. You should include:

Current mortgage or rent payments

Car payments

Insurance payments

Credit card payments

Student loan payments

Alimony or child support

Your answer will be a small decimal point value between 0 and 1. Move the decimal point over two places to convert it into a percent, since DTIs are described as percentages. For example, if you got 0.25 as your answer, that would mean your DTI is 25%.

As mentioned above, the lower your DTI is, the better. Ideally, you want to have a DTI at or below 36%.

If your DTI is above 50%, you’re going to have a difficult time buying a house, especially in a competitive real estate market like Washington. Increasing your income or decreasing your monthly expenses will lower your DTI.

Determine your down payment

Even with a mortgage, you’ll be expected to pay at least 20% of a house’s total value out of pocket before closing. This amount is called the down payment.

Determine what size down payment you can afford. This will give a pretty good idea of what sort of house you’ll be able to buy. If you aren’t quite able to make a 20% down payment on the house you want, there are a couple of things you can do:

Apply for a mortgage through the FHA. They will sometimes grant mortgages to individuals for as little as 3.5% down.

Consider buying mortgage insurance. Some lenders will consider allowing a down payment below 20% if you have mortgage insurance.

Veterans and active-duty military personnel also have the option to apply for a home loan through the Veterans Administration (VA) which can have a down payment of as low as 0%.

Prepare for closing costs and other fees

Closing costs are all the additional fees you’ll have to pay before closing on a home. These include:

Credit report fee

Home inspection fee

Home appraisal fee

Mortgage origination fee

Mortgage insurance premium

Homeowners insurance

Property taxes

According to data from ClosingCorp, most homebuyers in Washington can expect to pay between 2.3% and 2.88% of the house's total value in closing costs.

MORE: The 16 perils of home insurance

Look for homeowners insurance

Almost all mortgage lenders require homebuyers to purchase homeowners insurance as a condition of the mortgage. A house is a big investment—so both you and the lender will want to make sure it is properly protected.

The average cost of a standard $250,000 home insurance policy in Washington is just over $860 per year. This is significantly lower than the national average of $1,387.

The average cost of home insurance in Washington may be low, but that doesn’t necessarily mean you will get a good price. Different insurers offer different rates, so it’s important to compare quotes from multiple different providers.

Luckily, the insurance super-app

Jerry

makes comparing prices fast and easy. Just download the app, enter your information, and we’ll do the rest. Jerry will get quotes from top insurance providers in as little as 45 seconds. You just need to pick the one that works best for you.

Key Takeaway Before you begin hunting for a house, thoroughly evaluate your financial situation by calculating your credit score, DTI, estimated down payment, and potential closing costs.

MORE: 10 best companies for home and car insurance

Get preapproved for a mortgage

Before you can buy a house, you’ll need to know exactly how much money you can spend. This is why you need to get preapproved for a mortgage.

After you submit your application, the lender will let you know what size mortgage you have been approved for. Once you know what your budget is, you’ll be in a better position to negotiate with sellers.

To submit your application for reapproval, follow these steps:

Choose a mortgage lender

Give your Social Security Number

Supply all required information including banking information, employment history, property and assets, and any debts or financial obligations

Complete the mortgage application

Keep in mind that when you submit a mortgage application, the lender will run a hard credit check to determine your creditworthiness. Repeated hard checks against your credit can damage your score, so don’t submit your application until you know you're ready to buy.

How to pick the right mortgage in Washington

Before you decide on a mortgage lender, compare multiple offers to ensure you’re getting the best terms possible. The two most important things to consider when choosing a mortgage are the loan’s term and interest rate.

Most lenders offer mortgages of either 15- or 30-year terms. A longer term will mean that your monthly payments are smaller. However, you will also pay a higher interest rate for a longer period of time. Overall, long-term loans are far more expensive in the long run.

Interest rates from 30-year mortgages tend to be about 3.5% of the total price of the house. 15-year mortgages are usually closer to about 2.5%.

Look for a house

Once you’ve sorted out all the financial details, it is time to find your new house! You’ll want to tour at least several properties to give yourself enough options.

It’s a good idea to make a list of everything you are looking for in a house and then rank the items in order of how important they are to you. This will help you keep your initial goals in mind while hunting for a house.

Pick your city or neighborhood

One of the most important aspects of a home’s value is its location. Make sure that you carefully evaluate which city in Washington you want to live in. Consider the local culture, crime rates, the economy, school zones, and the cost of living.

If one of your top priorities is saving money, you might consider starting your search with Quincy, Ephrata, or Toppenish. They have some of the most affordable real estate in Washington.

MORE:Washington electric vehicle incentives

Buyer’s market vs. seller’s market

It’s important to know whether your new home is in a buyer’s market or a seller’s market. The difference between the two is pretty straightforward. Here’s what you need to know:

In a buyer’s market, supply is greater than demand. More people want to sell their house than there are buyers. This gives an advantage to the buyer.

In a seller’s market, demand is greater than supply. More people want to buy houses than there are properties for sale. This gives an advantage to the seller.

To find out what kind of market you’re dealing with, check the details of recent house sales in the area. If houses sell fairly quickly and for close to their asking price, it’s a seller’s market.

If, on the other hand, houses tend to sit on the market for longer and sell for below the original asking price, it’s probably a buyer’s market.

Washington, overall, is an extremely strong seller’s market. Demand for houses in The Evergreen State is incredibly high. This means competition for available properties will be very high.

Find a real estate agent

Feeling a bit overwhelmed? That’s pretty normal. Buying a house is complicated and time-consuming. That’s why a lot of homebuyers hire a real estate agent.

Not only can a good agent save you a lot of time and effort, but they can also often save you a lot of money.

Before deciding on an agent, make sure that they have experience with the specific neighborhood you’re dealing with and that they communicate promptly.

Make an offer

Once you’ve found your dream home, you’ll need to make an offer. The amount of your mortgage approval will tell you the absolute maximum you can spend. If you hired a real estate agent, they can help you decide the right size offer to make.

The person selling the house may or may not accept your offer without a hitch. Sometimes they’ll reject your offer or make you a counteroffer. If the two of you can reach a mutually acceptable dollar amount, you are all set! Get ready for your new life and your new home!

MORE: How to choose the right kind of home insurance for you

How to save on homeowners insurance

The best way to save money on your homeowners insurance is to regularly compare rates from multiple providers. Rates can change, so you should check quotes from top providers at least once a year.

This can be a big hassle—getting a quote from just one insurer can be time-consuming and require a lot of paperwork. Luckily, insurance comparison and super-app

Jerry

make the process fast and easy.

Just download the free app and enter some basic information. We’ll find you quotes from top insurance companies in as little as 45 seconds! All you have to do is pick the one that works best for you.

You can also bundle your home and auto insurance to get a discount on both. And Jerry can help you with that.

“I took a shot with
Jerry
and I’ve never been more happy! I was paying $350, and Jerry found me a Clearcover plan at $105. If saving $245 each month isn’t great news, I don’t know what is.”—Wyatt K.

Let Jerry find your price in only 45 seconds

No spam · No long forms · No fees

Find insurance savings

How much money do I need to buy a house in Washington?

The average cost of a house in Washington is $573,071. To cover a 20% down payment and the closing costs, potential homebuyers in Washington should ideally have about $130,000 in savings.

What credit score is needed to buy a house in Washington?

You will need a credit score of at least 620 to qualify for a conventional mortgage loan. If your credit score is too low for a conventional mortgage, you might consider applying for an FHA mortgage instead.

What is the best place to buy a house in Washington?

Which city in Washington is best for you will depend on what is most important to you. Places like Hoquiam, Grandview, and West Richland are great if you are looking for the most affordable real estate. If you have a little bit more to spend, you might consider Sammamish, Bainbridge Island, or Seattle.

Save an average of 18% by bundling your home and auto insurance

Bundle your home and auto insurance with Jerry and save!

Try Jerry