Maryland process · buyer view

The Maryland Home-Buying Process: Your Step-by-Step Checklist

Buying a home in Maryland follows a predictable seven-phase path from getting pre-approved through closing day at a settlement attorney's office.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-6 weeks

Pre-Offer

Get your money lined up, hire an agent on a written agreement, and understand who legally represents you before you start looking at homes.

  1. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Talk to two or three lenders and compare loan terms before you start touring homes. You'll need W-2s, recent pay stubs, and bank statements. A pre-approval letter shows sellers you can actually afford the home and helps you set a realistic budget.

    You'll need

    • W-2s (last 2 years)
    • Pay stubs (last 30 days)
    • Bank statements (last 2 months)
    • Photo ID

    Cost: $0

  2. Read the agency disclosure form your agent gives you

    Your agentAt your first substantive meeting with any agent

    At your first real conversation about buying, any Maryland agent must give you a state form called 'Understanding Whom Real Estate Agents Represent.' It explains the difference between a buyer's agent, a seller's agent, and a dual agent. Read it before you sign anything else so you know who is on your side.

    You'll need

    • Understanding Whom Real Estate Agents Represent (MREC form)

    Cost: $0

  3. Sign a written buyer agency agreement

    Your agentBefore touring any home with the agent

    Maryland has required a written agreement between a buyer and their broker since 2016, and the NAR settlement that took effect August 17, 2024 reinforced this nationally. The agreement spells out what your agent will do for you and how they get paid. Read the compensation section closely so you know what you owe if the seller doesn't cover the buyer-side fee.

    You'll need

    • Buyer agency agreement

    Cost: $0

  4. Budget for Maryland closing costs, not just the down payment

    YouWhile shopping for a loan

    Maryland closing costs are higher than many states because every sale carries a state transfer tax plus county recordation tax, and some counties add a local transfer tax on top. Plan on roughly 1-2% of the price for taxes alone, plus lender fees and title charges. Ask your lender for a written estimate so there are no surprises.

    You'll need

    • Loan Estimate from lender

    Cost: varies

  5. Check if you qualify as a first-time Maryland homebuyer

    YouBefore writing an offer

    If you've never owned a home in Maryland and the place will be your principal residence, the state transfer tax drops from 0.5% to 0.25% and that 0.25% is paid entirely by the seller — the contract cannot shift it back to you. Tell your agent and settlement attorney early so they apply the rule when drafting your offer.

    Cost: $0

  6. Tour homes that fit your budget and must-haves

    Your agentAfter pre-approval

    Make a short list of must-haves (bedrooms, commute, schools, yard) versus nice-to-haves before you go out. Tour in person whenever you can — listing photos hide a lot. Bring a notebook or use your phone to track each home so they don't blur together.

    Cost: $0

Phase 2 of 7 · typically 1-7 days

Offer

Write a competitive offer using the Maryland standard contract, decide which contingencies to include, and put down earnest money.

  1. Write your offer on the Maryland REALTORS contract

    Your agentWhen you're ready to bid on a home

    Most Maryland transactions use the Maryland REALTORS Residential Contract of Sale. Your agent fills in the price, settlement date, deposit amount, and which contingencies apply. Read the contract before you sign — once both sides sign, it is binding.

    You'll need

    • MAR Residential Contract of Sale

    Cost: $0

  2. Decide which contingencies to include

    Your agentWhen drafting your offer

    Contingencies let you back out and keep your deposit if certain things go wrong. The most common are financing, home inspection, and appraisal. Waiving contingencies makes your offer stronger but riskier — talk through the trade-offs with your agent before you commit.

    Cost: $0

  3. Confirm how your agent's commission gets paid

    Your agentBefore submitting your offer

    Since August 17, 2024, the MLS in Maryland can no longer advertise what the seller is offering to pay the buyer's agent. Your agent has to ask the listing broker directly, or you can ask the seller to cover it as part of your offer. Either way, know in writing what comes out of your pocket at closing.

    You'll need

    • Buyer agency agreement
    • Offer/contract

    Cost: varies

  4. Deliver your earnest money deposit

    Your agentWithin a few days of contract acceptance

    Earnest money shows the seller you're serious. Your check or wire goes to the listing broker's escrow (trust) account, not to the seller directly. Deposits typically run 1-3% of the price. Get a written receipt and keep proof of the wire — you'll need it at closing.

    You'll need

    • Wire confirmation or cashier's check copy

    Cost: varies

  5. Get the fully signed (ratified) contract back

    Your agentWithin 1-3 days of offer acceptance

    Once both you and the seller have signed every page and addendum, the contract is 'ratified.' This is the date that starts the clock on your inspection period, financing deadline, and other contingencies. Save the ratified PDF — every later step refers back to it.

    You'll need

    • Ratified contract

    Cost: $0

Phase 3 of 7 · typically 3-7 days after ratification

Under Contract

Review the seller's required Maryland disclosures, line up your settlement attorney, and order title work.

  1. Read the seller's Residential Property Disclosure or Disclaimer

    Seller's sideAt or before contract signing

    Maryland sellers must give you a state form where they either disclose what they know is wrong with the home (Disclosure) or sell it 'as-is' for hidden defects (Disclaimer). The form is published by the state under Md. Code Real Property §10-702. Read it carefully — anything the seller marked as a known defect is fair game for negotiation.

    You'll need

    • Residential Property Disclosure and Disclaimer Statement

    Cost: $0

  2. Review the lead-paint disclosure if the home was built before 1978

    Seller's sideAt contract signing; 10-day test window starts immediately

    Federal and Maryland law require sellers of pre-1978 homes to disclose any known lead-based paint hazards and to give you the EPA pamphlet 'Protect Your Family from Lead in Your Home.' You also get a 10-day period to test for lead before you're locked in. If lead testing matters to you, schedule it inside that window.

    You'll need

    • Lead-based paint disclosure
    • EPA lead pamphlet

    Cost: varies

  3. Review the HOA resale package if the home is in an HOA

    Seller's sideWithin days of contract ratification

    If the home sits in a homeowners association, the seller must give you a resale package under the Maryland Homeowners Association Act (Md. Code Real Property §11B). It includes the HOA rules, current dues, reserve fund, special assessments, and any pending lawsuits. You have a statutory rescission window after delivery — read the package fast and ask your attorney about deadlines.

    You'll need

    • HOA resale disclosure package

    Cost: varies

  4. Review the condo resale package if you're buying a condominium

    Seller's sideWithin days of contract ratification

    Maryland condos come with their own disclosure package under the Maryland Condominium Act (Md. Code Real Property §11-126), separate from HOA rules. It includes the declaration, bylaws, budget, monthly fees, and any planned special assessments. Like the HOA package, you get a rescission window after delivery — don't sit on it.

    You'll need

    • Condo resale package
    • Bylaws and budget

    Cost: varies

  5. Pick your own settlement attorney or title company

    YouWithin a week of ratification

    Maryland is an attorney-state, meaning a licensed attorney supervises closing. The Maryland Real Estate Commission specifically protects your right to choose — your agent or lender cannot require you to use a particular settlement company. Ask for two or three referrals and compare title insurance and settlement fee quotes.

    Cost: varies

Phase 4 of 7 · typically 7-14 days from ratification

Inspection

Hire inspectors to look at the home, well, and septic if applicable, then negotiate any repair credits with the seller.

  1. Hire a licensed home inspector

    InspectorWithin the inspection window in your contract

    A general inspector spends 2-4 hours checking the roof, foundation, plumbing, electrical, HVAC, and major appliances. You'll get a written report with photos. Show up for at least the last hour so the inspector can walk you through what they found.

    Cost: $400-700 typical

  2. Order a well water test if the home has a private well

    InspectorWithin the inspection window

    Many homes outside Maryland's denser counties run on a private well. State law (Md. Code Real Property §10-713) lets you make water quality testing a condition of sale, and lenders often require it. The test checks for bacteria, nitrates, and lead. Coordinate with your inspector or hire a certified water lab directly.

    You'll need

    • Water test results

    Cost: $100-300 typical

  3. Order a septic inspection if the home isn't on public sewer

    InspectorWithin the inspection window

    Homes outside city sewer service usually rely on a private septic system. A septic inspector pumps the tank, checks the drain field, and confirms the approved bedroom count matches what's recorded with the county health department. Mismatches can limit how you use the property.

    You'll need

    • Septic inspection report

    Cost: $300-600 typical

  4. Add specialty inspections if the report flags concerns

    InspectorWithin the inspection window

    If the general report mentions cracks, moisture, old wiring, or possible mold, hire a specialist before your inspection window closes. Common add-ons include radon testing, structural engineering, chimney scope, and pest inspection. Each one is cheap insurance compared to surprises after closing.

    Cost: varies

  5. Negotiate repairs or a credit with the seller

    Your agentBefore the inspection contingency expires

    After you have the inspection reports, your agent sends a written request for repairs, a price reduction, or a closing credit. You can also walk away inside the inspection window and get your deposit back if the deal falls apart. Pick your battles — focus on safety and big-ticket items, not cosmetic stuff.

    You'll need

    • Inspection reports
    • Repair addendum

    Cost: $0

Phase 5 of 7 · typically 3-4 weeks

Loan & Appraisal

Lock your rate, let the lender order the appraisal, and clear every condition the underwriter throws at you.

  1. Lock your interest rate

    LenderOnce your closing date is firm

    A rate lock guarantees your interest rate for a set number of days, usually 30-60. Locking too early can be costly if your closing slips; locking too late risks a market jump. Ask your lender what the lock fee is and whether you can extend it for free if the seller misses a deadline.

    You'll need

    • Rate lock confirmation

    Cost: $0

  2. Submit every document your underwriter asks for

    LenderThroughout underwriting

    Underwriting is a back-and-forth: the lender will ask for updated pay stubs, explanation letters for big deposits, gift letters from family, and more. Reply within 24 hours. Don't open new credit cards, finance furniture, or change jobs until after closing — any change can blow up your loan.

    You'll need

    • Updated pay stubs
    • Bank statements
    • Letters of explanation

    Cost: $0

  3. Pay for and wait on the appraisal

    LenderWithin 1-2 weeks of ratification

    Your lender hires an independent appraiser to confirm the home is worth what you agreed to pay. You typically pay the appraisal fee up front. Turnaround is usually 1-2 weeks. The appraiser visits the home, then sends a written valuation to the lender.

    Cost: $500-800 typical

  4. Handle a low appraisal if it happens

    Your agentWithin days of receiving the appraisal

    If the appraisal comes in below your purchase price, you have three choices: ask the seller to lower the price, bring extra cash to cover the gap, or use your appraisal contingency to walk away. Talk it through with your agent and lender before responding — you usually have only a few days to decide.

    You'll need

    • Appraisal report

    Cost: $0

  5. Get your 'clear to close' from the lender

    LenderUsually 5-7 days before closing

    Once underwriting signs off on every document and the appraisal supports the price, the lender issues a 'clear to close.' This is the green light for the settlement attorney to schedule your closing date. From here, the closing package can be drafted and sent to you for review.

    Cost: $0

Phase 6 of 7 · typically 5-10 days before closing

Pre-Closing

Set up insurance, do your final walkthrough, review the Closing Disclosure, and wire your money to the settlement attorney.

  1. Buy a homeowners insurance policy

    You1-2 weeks before closing

    Your lender requires proof of homeowners insurance before closing. Get quotes from two or three carriers — bundling with auto insurance often saves money. Ask about flood insurance separately if the home is in or near a flood zone. The first year's premium is usually paid at closing.

    You'll need

    • Insurance binder/declarations page

    Cost: $1,000-2,500 typical first year

  2. Review your Closing Disclosure carefully

    LenderAt least 3 business days before closing

    Federal law requires your lender to send the Closing Disclosure at least three business days before settlement. It lists your final loan terms, monthly payment, and every dollar you owe at closing. Compare it line-by-line to your original Loan Estimate and ask the lender or settlement attorney about anything that changed.

    You'll need

    • Closing Disclosure

    Cost: $0

  3. Do a final walkthrough of the home

    Your agentWithin 1-2 days of closing

    Walk through the home within 24-48 hours of closing to confirm agreed repairs are done, the seller's stuff is out, and nothing new is broken. Test light switches, faucets, the HVAC, and any included appliances. Bring a phone to take photos if you find a problem.

    Cost: $0

  4. Wire your closing funds to the settlement attorney

    You1-2 days before closing

    Your settlement attorney will email wiring instructions for your down payment plus closing costs. Wire fraud is a real risk — call the attorney's office at a number you find independently to verbally confirm the wiring instructions before sending money. The wire usually needs to land at least 24 hours before settlement.

    You'll need

    • Wire instructions (verified by phone)

    Cost: varies

  5. Confirm where, when, and what to bring to closing

    Escrow / titleDay before closing

    Maryland closings happen at the settlement attorney's office, the title company, or sometimes by mobile notary. Confirm the address, time, and parking with your attorney the day before. You'll need a government-issued photo ID and any spousal signatures if a spouse is on the loan.

    You'll need

    • Government-issued photo ID

    Cost: $0

Phase 7 of 7 · typically 1-2 hours plus same-day recording

Closing

Sign the closing documents at the settlement attorney's office, wait for the deed to record, and get your keys.

  1. Attend settlement at the attorney's office

    AttorneyOn settlement day

    Maryland is an attorney-state, so a licensed Maryland attorney runs your closing (called 'settlement'). The attorney walks you through the loan documents, deed, and title affidavits. Plan on 60-90 minutes. Read each page before you sign — don't let pace pressure you.

    You'll need

    • Government-issued photo ID
    • Closing Disclosure
    • Wire confirmation

    Cost: $0

  2. Pay your share of taxes and recording fees at the table

    Escrow / titleAt settlement

    Your closing costs include the state transfer tax, county recordation tax, county transfer tax (if any), title insurance, lender fees, and prepaid items like insurance and property taxes. The Closing Disclosure shows the totals. As a first-time Maryland buyer on a principal residence, the seller covers the reduced 0.25% state transfer tax — confirm that line on the settlement statement.

    You'll need

    • Closing Disclosure
    • Settlement statement

    Cost: varies

  3. Wait for the deed to record before getting keys

    AttorneySame day as settlement

    Maryland's Wet Settlement Procedure Act controls when proceeds are released and when ownership officially transfers. The settlement attorney sends the deed to the county clerk to record, and only then can the seller's funds be disbursed and keys handed over. This is usually same-day but can take a few hours.

    Cost: $0

  4. Get your keys, garage remotes, and access codes

    Seller's sideAfter recording on closing day

    Once the deed records and funds disburse, the listing agent or seller hands over the keys, garage remotes, mailbox keys, and any alarm or smart-lock codes. Change the locks within the first week — you have no idea who else has a copy.

    Cost: $0

  5. Save your closing package for taxes and future reference

    YouWithin a week of closing

    Save a digital copy of every document you signed, including the deed, Closing Disclosure, settlement statement, and title insurance policy. You'll need them for your tax return (mortgage interest and points may be deductible) and any future refinance or sale. Back them up to cloud storage so you don't lose them.

    You'll need

    • Full closing package PDF

    Cost: $0

Sources

  1. [1] MAR Settlement FAQs - Maryland REALTORS
  2. [2] NAR Consumer Guide: Written Buyer Agreements
  3. [3] MAR Settlement FAQs - Maryland REALTORS
  4. [4] NAR Consumer Guide: Written Buyer Agreements
  5. [5] Recordation and Transfer Tax Rates in Maryland - Gordon Feinblatt
  6. [6] Recording Fees and Taxes - Maryland Courts (Frederick County)
  7. [7] Recordation and Transfer Tax Rates in Maryland Explained - Gordon Feinblatt
  8. [8] Recordation Tax - Baltimore City Department of Finance
  9. [9] Md. Code Real Property §10-702
  10. [10] Rental Property Owner Requirements - Maryland Department of the Environment
  11. [11] Md. Code Environment §6-801 - Lead Risk Reduction in Housing Act
  12. [12] Recordation and Transfer Tax Rates in Maryland - Gordon Feinblatt (as of October 2025)
  13. [13] Md. Code Real Property §10-713 - Water Quality Testing as Condition of Sale
  14. [14] Md. Code Real Property §10-702 - Mandatory Disclosures
  15. [15] Understanding Whom Real Estate Agents Represent - MREC Form
  16. [16] Md. Code Real Property §11-126 - Condo Disclosure Requirements
  17. [17] Maryland Condominium Act and HOA Act - Cowie Law Group 2024
  18. [18] Understanding Whom Real Estate Agents Represent - MREC Form
  19. [19] Md. Code Real Property §11B - Maryland Homeowners Association Act
  20. [20] Maryland Homeowners Association Act: A 2026 Guide
  21. [21] Md. Code Real Property §10-702
  22. [22] Md. Code Real Property §10-702 - Single Family Homes; Mandatory Disclosures
  23. [23] Maryland Residential Property Disclosure and Disclaimer Statement (COMAR Form)
  24. [24] Wet Settlement Procedure Act - MREC Consumer Information
  25. [25] Licensee May Not Require Use of Specific Lender or Settlement Company - MREC

Last updated May 15, 2026