Planning to buy a house in Maryland this year?
With its proximity to DC, coastal landscapes, and strong job market, Maryland is an appealing choice for your next home. Whether you're considering buying a house in Baltimore, Annapolis, or Columbia, it's important to start your search with some knowledge of the local housing marketBuying a house in Maryland can feel stressful — it’s a big financial decision. That’s why we created this comprehensive guide about 8 steps to buying a house in Maryland. This guide will help you simplify the process, save time and money, and find your next home in the Free State.
⚡ Get started: Match with top buyer’s agents near you and get cash back at closing.
1. Assess your financial readiness
Before you start house hunting in Maryland, it’s crucial to understand the state of your finances and what you can afford in a home.
Save for a down payment
While some loans allow down payments as low as 3.5% (FHA) or even 0% (VA), a larger down payment can reduce your monthly costs and help you avoid private mortgage insurance (PMI). 20% is the recommended down payment for home buyers. For a median value Maryland home, that would be around $98,100.
If you can’t afford a 20% down payment, you have options! Consider choosing an FHA or VA loan, or check out some of Maryland’s down payment assistance programs.
Check your credit score
Your credit score plays a vital role in determining your mortgage interest rate and loan options. Most lenders consider scores above 740 to be excellent, while scores below 620 may make obtaining a conventional mortgage challenging.
| Loan | Down payment | Credit score requirement |
| Conventional loan | 20% or <20% with PMI | 620 |
| FHA loan (Higher down payment option) | 10% | 500 |
| FHA loan (Lower down payment option) | 3.5% | 580 |
| VA loan | 0% | Varies by lender, but usually 620 |
2. Compare Maryland down payment assistance programs
If you’re struggling to afford a down payment, Maryland offers several programs to help homebuyers with this cost.
| DPA program | Max household income | Max purchase price | Credit score |
| First-Time Homebuyers Incentive Program | $68,450 - $129,050 | Varies | Varies |
| Direct Homeownership Assistance Program | $68,450 - $129,050 | Varies | Varies |
| Buying Into Baltimore Down Payment and Closing Cost Assistance | $68,450 - $129,050 | Varies | Varies |
| Mortgage Assistance Program (MAP) | $85,563 - $141,750 | $500,000 | Varies |
Details
- Down payment amount: The base incentive amount is $10,000 for first-time homebuyers. An additional $5,000 bonus is available to homebuyers who (a) purchase the house they have rented and occupied for at least six months, or (b) have a disability or have a household member with a disability.
- Max household income: $68,450 - $129,050
- Max house price: Varies
- Credit score: Varies
- Provider: Baltimore City Dept of Housing & Community Dvelop
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
The First-Time Homebuyers Incentive Program is a forgivable loan providing up to $10,000 with a 5 year term. The borrower must contribute $1,000. Please note that homeownership incentive checks are generally issued 10-15 business days after applications are approved. For a full list of Homeownership Counseling Agencies go to the following link: https://dhcd.baltimorecity.gov/sites/default/files/Baltimore%20City%20Incentive%20Programs%20OCT%202023.pdf. See program guidelines for further details.
Details
- Down payment amount: Maximum down payment assistance provided is up to $5,000.
- Max household income: $68,450 - $129,050
- Max house price: Varies
- Credit score: Varies
- Provider: Baltimore City Dept of Housing & Community Dvelop
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
Direct Homeownership Assistance Program is a forgivable loan, providing maximum assistance up to $5,000 towards down payment and closing cost assistance. This program can only be used in conjunction with the First-Time Homebuyers Incentive Program. The Direct Homeownership Assistance Program provides down payment and closing cost assistance to eligible first-time homebuyers who (a) purchase the house they have rented and occupied for at least six months, or (b) have a household member with a disability. Borrowers must live in this home as your primary residence and must contribute at least $1,000 of your own money to your home purchase. Household income cannot exceed 80% AMI. See program guidelines for further details.
Details
- Down payment amount: Maximum down payment assistance provided is up to $5,000.
- Max household income: $68,450 - $129,050
- Max house price: Varies
- Credit score: Varies
- Provider: Baltimore City Dept of Housing & Community Dvelop
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? No
Overview
Buying Into Baltimore Down Payment and Closing Cost Assistance is a forgivable loan, providing maximum assistance up to $5,000 towards down payment and closing cost assistance. The $5,000 Buying Into Baltimore incentive is a five-year forgivable loan that appears as a second lien on a property. The lien balance will reduce by 20% per year for five years until forgiven (or repaid). No household income restriction. Homes must be owner-occupied for at least five years to avoid repayment. See program guidelines for further details.
Details
- Down payment amount: Maximum downpayment assistance provided is up to $50,000.
- Max household income: $85,563 - $141,750
- Max house price: $500,000
- Credit score: Varies
- Provider: Arundel Community Development Services (ACDS)
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
The Mortgage Assistance Program (MAP) is a deferred loan providing up to $50,000 with a 30-year term. The applicant(s) must contribute a minimum of one percent (1%) of the sales price of their own funds. Borrower must be a first-time homebuyer and maximum purchase price cannot exceed $500,000. Borrower must occupy the property as their principal residence; non-occupant co-borrowers (co-signers) are not permitted. See program guidelines for further details.
3. Find an experienced Maryland real estate agent
Finding the right real estate agent in Maryland can make a significant difference in your home-buying journey. An experienced buyer’s agent can help you navigate Maryland’s real estate market, find homes that fit your criteria, and negotiate offers with sellers.
Maryland’s real estate market varies considerably by region. An agent who specializes in Baltimore's suburbs might not be the best choice for a home in western Maryland. Look for agents who:
- Have at least 3 years of experience in your specific target area
- Can discuss recent sales and market trends in your desired neighborhoods
- Understand local zoning laws and development plans
- Have experience with your property type
- Are familiar with local flood zones and environmental considerations
- Have positive reviews online from other buyers
It’s also a good idea to confirm that your agent is licensed through the Maryland Real Estate Commission before working with them. You can verify this online by entering their name on the Maryland Real Estate Commission license lookup.[5] Once you’ve found 2-3 agents you like, interview them thoroughly to confirm which one is the right fit for you.
4. Get pre-approved for a mortgage loan
Getting pre-approved for a mortgage is a crucial step that should be completed before you start viewing homes with your agent. A pre-approval letter shows sellers you're a serious buyer and helps you understand exactly how much house you can afford.
You’ll have the option to choose a local lender in Maryland or a nationwide lender. Local lenders often have a more in-depth understanding of the Maryland real estate market and provide more personalized service, while national lenders may offer more competitive rates and faster processing times. Compare rates from 3-4 lenders and try to get quotes within 14 days to minimize the effect on your credit score.
To get pre-approved, you’ll likely submit the following information:
- Last two years of W-2s and tax returns
- Recent pay stubs (last 30 days)
- Bank statements (last two months)
- Investment account statements
- Photo ID and Social Security number
- Proof of Maryland residence
- Employment verification
- Explanation of any credit issues
- Information about current debts
Your pre-approval letter will typically be valid for 60-90 days and show your maximum loan amount. Now you can start the fun part: house hunting!
5. Begin your home search
It’s time to begin actively searching for houses in Maryland. Start your search by narrowing down on a location, weighing factors like affordability and quality of life.
The most affordable cities in Maryland
Several Maryland cities offer excellent value for homebuyers:
- 🥇 Cumberland
- Median home value: $141,303
- Property taxes: $1,736
- Median household income: $56,958
- 🥈 Edgewood
- Median home value: $253,530
- Property taxes: $2,076
- Median household income: $86,195
- 🥉 Baltimore
- Median home value: $247,714
- Property taxes: $3,526
- Median household income: $77,398
Quality of life in Maryland
Out of the top 50 metros by population in the U.S., Baltimore ranked #32 in desirability.Quality of life can look different for everyone, but here are some of the top things to consider when looking for a home.
- Community features, including shopping, parks, and medical facilities
- City infrastructure, including school district ratings, highway access, and public transportation
- Natural hazards, like flood, sinkhole, and tornado risks
- Available property types, such as single-family homes, townhouses, and condos
Attend house showings in Maryland with your agent
Once you’ve chosen a desired location, set a budget, and have a list of preferred house features, your real estate agent will find homes on your local Multiple Listing Service that best meet your needs. You can also do some research yourself by using one of the many house-buying real estate websites that lets you search for homes.
After you’ve selected the homes you’re interested in, you should tour them in person with your agent.
⭐ House showing tips for buyers
- Take notes, photos, and video during the showing to reference later.
- Ask about the age of major systems (HVAC, roof, water heater).
- Listen for neighborhood noise.
- Check ceilings, floors, and basement (if applicable) for water damage.
- Discuss your opinions with your agent after you’ve left the property.
Once you’ve found a house that meets your criteria, it’s time to make an offer!
6. Make offers and negotiate
Making an offer on a house requires strategy, preparation, and creative thinking. You want your offer to be attractive to the seller but also keep your costs down. Striking this balance can be tricky, but your real estate agent can help you navigate the process.
What makes a strong offer in Maryland?
- Purchase price: Include the amount you're willing to pay, supported by comparable sales data. Your agent will help you analyze recent sales of similar properties in the area to determine a competitive offer price.
- Earnest money deposit: In Maryland, earnest money typically ranges from 1–3% of the purchase price. For the median home value in Maryland, that would be around $4,187–$12,560. This shows the seller you're serious about the purchase.
- Pre-approval letter: Many sellers won’t consider your offer if you don’t have a pre-approval letter from a lender.
- Contingencies: Contingencies can protect you in case things don’t go as planned. Consider including an inspection contingency and appraisal contingency to protect you in case these reports reveal issues.
- Closing date: Include a realistic closing timeline that works for both parties. In Maryland, 35 days are typical, though this can vary based on financing type.
How to negotiate your offer effectively
If the seller accepts your offer, you can move forward to the due diligence process. If the seller comes back with a counteroffer, you’ll have a chance to negotiate the offer terms.
Keep in mind that the home price isn’t always the most important factor. There are several other factors you can negotiate with the seller, including:
- Closing costs: Instead of negotiating the price down, ask the seller to cover some closing costs. This reduces your out-of-pocket expenses while keeping the sale price (and the seller's net proceeds) higher.
- Buyer’s agent commission: According to the 2024 NAR lawsuit, buyers are now responsible for paying the buyer’s agent commission to their agent. However, most sellers will consider paying this cost to incentivize buyers.
- Repairs: Rather than requesting repairs, negotiate a credit at closing. This gives you control over the work and often simplifies the transaction.
- Closing timeline: If the seller seems eager to sell quickly, consider offering an expedited closing date.
Remember that successful negotiation often requires give and take from both parties. Stay focused on your primary goals while remaining flexible on less important details. Your agent's experience in your local market will be invaluable throughout this process.
7. Complete due diligence
After your offer has been accepted, you’ll enter into the due diligence period, which helps you understand exactly what you’re purchasing and identifies any issues before closing.
Home inspections in Maryland
We highly recommend getting the home inspected, unless you specifically waived the inspection contingency in your offer. A home inspection helps identify any issues with the home, ranging from minor code violations to major structural issues. In Maryland, a home inspection costs around $232-$265.[6] The buyer is responsible for paying for the home inspection.
- Flood damage in coastal properties (especially eastern shore)
- Structural deterioration in historic buildings (common in older homes)
- Basement flooding and moisture problems (frequent issue)
- Storm damage from hurricanes (particularly in coastal regions)
- Wood destruction from termite infestation (especially in warmer months)
It would also be a good idea to order termite and radon inspections for your potential Maryland home. A termite inspection costs around $102 in Maryland.[7] You can usually order a free or discounted radon test from the Maryland government, or your inspector will perform one during the home inspection.
Home appraisals in Maryland
Your mortgage lender will order a home appraisal to make sure the property’s value matches the amount that they’re lending you. A professional appraiser will visit your potential home, evaluate its condition compared to similar, recent sales in the area, and provide a detailed value report. A home appraisal costs around $216—$268 in Maryland.[8]
If the appraisal comes in low, you have a few options:
- Renegotiate the purchase price with the seller.
- Make up the difference in cash.
- Challenge the appraisal with additional data and request a new one.
- Cancel the contract (if you have an appraisal contingency).
Underwriting process in Maryland
While inspections are ongoing, your lender will begin the underwriting process to officially verify that you can afford your mortgage. They'll typically require:
- Updated bank statements
- Recent pay stubs
- Tax returns
- Source of down payment funds
- Insurance quotes
During this time, avoid making large purchases, changing jobs, or opening new credit accounts, as these events could delay the underwriting process and postpone closing. Stay in regular contact with your loan officer, and don't hesitate to ask questions about anything you don't understand.
8. Close on your new home
You’re almost at the finish line! Before closing, perform a final walk-through of the home with your agent to make sure everything is in the expected condition. You’ll want to verify that all agreed-upon repairs are completed, no new damage has occurred, all included items remain in the home, and all systems and appliances are working properly.
If you come across any issues, your buyer’s agent will communicate with the seller’s agent to resolve the issue.
Attend the closing
As the buyer, be prepared to sign a ton of documents during closing! You’ll typically meet at the office of a title company, real estate attorney, or lender to sign the documents. The seller may not be present during closing, as they can do their part electronically.
The closing package typically includes:
- Deed
- Mortgage/Deed of Trust
- Settlement statement
- Affidavits
- Tax documents
- Insurance documents
As you sign each document, don’t be afraid to ask questions to your agent, lender, or attorney if anything is unclear. Make sure that all names and property details are correct, and keep copies of all your signed documents.
In Maryland, state law doesn't require a real estate attorney for home closings, but having legal representation can be a safeguard for your purchase. An experienced attorney can review your purchase agreement, conduct a thorough title search, identify potential legal complications, and ensure all transaction documents are accurate and properly handled.
Pay buyer closing costs
Once you’ve signed the documents, you’ll pay your portion of the closing costs. Maryland buyer closing costs include:
- Buyer’s agent commission: Unless the seller agreed to pay the buyer’s agent commission, you’ll be responsible for this cost at closing. In Maryland, the average buyer’s agent commission is 2.55%.
- Lender-related fees: Be prepared to pay some costs associated with the underwriting of your mortgage loan, processing fees, and rate-lock fees.
- Property-related fees: As the buyer, you’re responsible for covering the cost of the home inspection, appraisal fee, and other property inspection costs.
- Title-related fees: You’ll be charged for the title search, recording fees, and any title insurance (if applicable).
- Prepaid costs: You’ll typically pay upfront for homeownership insurance, property taxes, and HOA dues (if applicable).
In total, buyer closing costs are typically between 3% and 5% of the purchase price in Maryland. That would be $14,709-$24,515 on the median value home in Maryland.
Keep in mind that buyer closing costs can vary by buyer and property, so be sure to speak with your agent, escrow agent, or real estate attorney to understand your financial responsibility.
After closing, your agent will give you the keys to your new Maryland home!
✅ Post home-purchase tasks in Maryland
- Collect physical and digital copies of your closing documents.
- Set up utilities (water, electrical, gas, etc.).
- Change locks and access codes for security.
- Update your address with the USPS.
- Be prepared for your first monthly mortgage payment (usually due at the beginning of the next month).
Should I buy a house in Maryland?
With the real estate market constantly shifting, it’s difficult to know when it’s smart to buy a house in Maryland. A real estate agent can help you understand current market conditions, assess your financial readiness, and get you started on your journey to purchasing a home.
According to Zillow, Maryland is currently experiencing a neutral market.[1]
In Maryland, the median home sale price is $490,300.[2] That’s 20.08% higher than the Maryland median listing price of $408,323.[3]
The median home value in Maryland is $418,666, which is projected to rise by 0.80% in the next year.[1]
Currently in Maryland, houses stay on the market for an average of 44 days. That’s 22 days less than than the national average.[3]
A faster market indicates that houses are selling quickly and demand is high. When the market moves slower, you could have more time to make an offer.
Currently in Maryland, there are 9,324 housing units on the market. This is 57 units fewer than the yearly average inventory count in Maryland.[3]
A low housing inventory indicates that there are fewer homes than interested buyers, which can lead to buyer competition, while a higher inventory indicates that there are plenty of homes available to choose from.
The national mortgage rate is 6.76%, which is down 2.70% compared to last month.[4]
Frequently asked questions about buying a house in Maryland
- Assess your financial readiness.
- Compare DPA programs.
- Find a local real estate agent.
- Get pre-approved for a mortgage.
- Begin your home search.
- Make offers and negotiate.
- Complete due diligence.
- Close on your home.
According to a recent home buyer study, a buyer needs an average household income of $95,415 to afford a median value home in Maryland.
Most conventional lenders require a minimum 620 credit score.
Federal Housing Administration (FHA) loans require a minimum credit score of 500 for the 10% down payment option, and a minimum credit score of 580 for the 3.5% down payment option.
20% is what lenders typically recommend as a down payment in Maryland. On a typical Maryland home, that's about $98,100.
You can put down less than 20%, but you'll need to pay private mortgage insurance (PMI) if you do. If you opt for an FHA loan, you might qualify for a down payment as low as 3.5% or 10%.
Methodology
Our mission is to provide accurate, actionable, and practical information that will help you make better decisions about your real estate journey.
To help create this Maryland home buying guide, we pulled current and historical market data from vetted sources, such as Zillow, Realtor.com, Redfin, Freddie Mac, and Thumbtack. As these sources update, we refresh our pages accordingly to ensure everything is current.
We also used survey data from our homeownership studies, including:
- How Much House Can I Afford (2024)
- The Best Places to Live in the U.S. (2024) — surveyed 1,000 Americans
- The True Cost of Buying a Home (2024) — surveyed 1,000 Americans who have bought a home since 2022
