How to Buy a House in Maryland: Complete First-Time Buyer Guide

First-Time Buyer Guide · Maryland · St. Mary's County

Buying your first home feels big because it is. Most of the stress, though, comes from not knowing what's coming next. This guide walks you through the whole process in Maryland, in order, with the St. Mary's County details that most national guides skip. Read it start to finish, or jump to the step you're on.

What Should First-Time Buyers Do First?

1. Check your credit and fix any errors before a lender pulls it.
2. Figure out a comfortable monthly payment, including taxes, insurance, and any HOA, not just the mortgage.
3. Talk to a lender and get preapproved, so you know your real budget.
4. Pick your agent and talk through what matters most: commute, schools, space, budget.
5. Start touring with a short list of must-haves and nice-to-haves.

How Much Money Do You Need to Buy a House?

Most first-time buyers need less up front than they think. You'll plan for three buckets:

• Down payment: 0% for eligible VA buyers, as little as 3.5% for FHA, and as little as 3% on some conventional programs.
• Closing costs: roughly 2% to 5% of the price, covering lender fees, title insurance, the appraisal, recording and transfer taxes, and prepaid taxes and insurance.
• Earnest money and inspections: paid during the contract, with the deposit credited back to you at settlement.

Keep a cushion after closing, too, for moving costs and the first surprise repair. Seller concessions can sometimes cover part of your closing costs, which we can negotiate in your offer.

What Credit Score Do You Need?

You don't need perfect credit. FHA loans can work with scores in the 580 to 620 range, and conventional loans typically look for 620 or higher for the best terms. A higher score gets you a better rate, which lowers your payment for years, so it's worth checking your credit early and paying down balances before you apply.

Loan Types and Maryland Programs

• Conventional: flexible, with as little as 3% down on some programs. Mortgage insurance usually applies under 20% down.
• FHA: government-backed, easier credit standards, 3.5% minimum down with qualifying credit.
• VA: for eligible service members and veterans, 0% down and no monthly mortgage insurance. My VA buyer checklist for St. Mary's County covers it step by step.
• USDA: 0% down in eligible rural areas. Some rural parts of St. Mary's may qualify, so check a specific address on USDA's eligibility map.
• Maryland Mortgage Program: the state's program for first-time buyers, with loan options and down payment assistance through approved lenders. Ask your lender whether you qualify.

What Does Getting Preapproved Actually Mean?

A preapproval means a lender has checked your credit, income, assets, and debts and told you, in writing, how much they're willing to lend. It's stronger than a prequalification, which is just an estimate. Sellers take preapproved buyers more seriously, and the process often uncovers issues early enough to fix them. Get preapproved before you start touring seriously.

Do You Need a Buyer Agent?

Your own agent represents you, not the seller. That means pricing advice, negotiating, reviewing contracts and disclosures, coordinating inspections, and keeping your deadlines on track. Before you tour with an agent, you'll sign a written buyer agreement that spells out the services and how your agent gets paid. Ask questions until it's clear. In many cases the seller ends up covering some or all of your agent's compensation, and that's something we can negotiate in your offer.

Searching and Touring Homes

Tell me what you're looking for and I'll send homes that fit, with the local details checked: school assignment, well and septic, flood zone, and drive time to the gate if you work on base. When you tour, look past paint and furniture and focus on what's expensive to change: location, layout, roof, systems, and the lot.

Making an Offer

Your offer is more than a price. It includes your financing, your deposit, your contingencies (inspection, appraisal, financing), any closing cost help you're asking for, and your settlement date. I'll pull recent comparable sales so you know what the home is really worth, and we'll build terms that make your offer strong without giving up the protections you need.

How Much Earnest Money Do You Need?

Earnest money is a good-faith deposit that shows the seller you're serious. The amount varies by price and market conditions. It's held in escrow, not handed to the seller, and it's credited toward your costs at settlement. Your contract spells out when it's refundable, which is one more reason to read your contingencies carefully.

What Is a Home Inspection, and Do You Need One?

Yes. A licensed home inspector checks the roof, structure, electrical, plumbing, heating and cooling, and more, and gives you a written report. In St. Mary's, add a well water test and septic inspection for homes that aren't on public water and sewer. After the inspection, you can ask the seller for repairs or a credit, or walk away within your inspection period if the problems are too big.

What Happens During a Home Appraisal?

Your lender orders an appraisal to confirm the home is worth what you're paying. The appraiser looks at the home and recent comparable sales. If it appraises at or above your price, you're on track. If it comes in low, we can renegotiate, you can cover the gap, or, depending on your contract, you may be able to cancel. VA and FHA appraisals also check basic safety and condition items.

What Happens Between Contract and Closing?

1. Your deposit goes into escrow.
2. Inspections happen and any repair negotiation wraps up.
3. Your lender orders the appraisal and moves your loan through underwriting. Don't open new credit or change jobs during this stretch.
4. The settlement company searches title and orders title insurance.
5. You line up homeowners insurance (and flood insurance if needed).
6. You get your final loan approval and closing disclosure.
7. You do a final walkthrough, then sign at settlement and get your keys.

From accepted offer to keys usually takes 30 to 60 days.

Closing Costs for Maryland Buyers

Plan for roughly 2% to 5% of the purchase price. That covers loan fees, title insurance, the appraisal, recording and transfer taxes, and prepaid items like property taxes and homeowners insurance. In Maryland, transfer and recordation taxes are often split between buyer and seller, and first-time Maryland buyers get a break on the state transfer tax.

Buying in St. Mary's County: What to Know

St. Mary's has its own rhythm, and it changes how you should shop:

• Commute first: if you work on NAS Patuxent River, your gate matters. Gate 1 at Pegg Road is the only one open 24/7. My PCS buyer checklist breaks down all three gates.
• Well and septic: many homes aren't on public water and sewer, so add a well water test and septic inspection to your inspection period.
• Waterfront rules: land within 1,000 feet of tidal water is in Maryland's Critical Area, which limits clearing and building near the shoreline. Read what waterfront buyers need to know.
• Local closing costs: St. Mary's charges a 1% county transfer tax (the first $30,000 is exempt for a home you'll live in) and $4.00 per $500 in recordation tax, plus the 0.5% state transfer tax. First-time Maryland buyers get the state rate cut to 0.25%, paid by the seller.
• Property taxes: the county rate is $0.8478 per $100 of assessed value. Here's how your bill and the Homestead Credit work.
• Schools: assignments follow the exact address. Here's how to check any home's schools.
• Seasonality: summer PCS season brings the most competition near the base, so shopping off-season can mean less of it.

Explore buying a home in St. Mary's County town by town, or compare new construction vs. resale.

Mistakes First-Time Buyers Should Avoid

• Shopping before you're preapproved. You'll fall for homes you can't buy.
• Budgeting off the mortgage alone and forgetting taxes, insurance, HOA, and flood insurance.
• Skipping the inspection to make an offer look stronger.
• Opening new credit or changing jobs before closing.
• Ignoring commute and school checks until after you're under contract.
• Going without your own agent and relying on the seller's agent, who works for the seller.

What to Look for at Showings

• Things you can't easily change: location, lot, layout, natural light, and noise.
• Big-ticket systems: ask the age of the roof, HVAC, and water heater.
• Water: stains on ceilings, musty basements or crawl spaces, and how the yard drains.
• Utilities: public water and sewer, or well and septic.
• The neighborhood: drive it at rush hour and on a weekend evening.

Paint, carpet, and light fixtures are easy to change. Don't let them make the decision for you.

A Typical Timeline at a Glance

Frequently Asked Questions

Sources: Maryland DLS 2026 county tax rates · Gordon Feinblatt on Maryland transfer taxes · Maryland DNR Critical Area FAQ · NAS Patuxent River base access. Checked October 2026; rules and rates change, so confirm anything that affects your decision.