Steps to Buying a House in Maryland: A First-Time Buyer's Guide (2026)

by Josh Tessier

By Josh Tessier, Lee Tessier Team of eXp Realty Published: Nov. 10, 2026 | Updated: Nov. 10, 2026

🔑 Buying a house in Maryland comes down to 10 steps: get pre-approved, sign a written agreement with your buyer's agent, tour homes, make an offer with an earnest money deposit, get inspections, get the appraisal and loan approval, clear title, review your Closing Disclosure, close with a title company, and then apply for the Homestead Tax Credit. Maryland adds a few rules of its own along the way, and first-time buyers get a break on transfer taxes.

I help buyers through this in Harford County. Here's how each step works in Maryland, with the rules, deadlines and taxes that are specific to this state.

🗺️ The 10 steps at a glance

Step	What happens	Maryland-specific?
1. Get pre-approved	A lender checks your income, credit and savings	Look at the Maryland Mortgage Program
2. Sign a buyer agreement	You choose an agent to represent you	✅ Written agreement required
3. Tour homes	Read the seller's disclosure form	✅ Maryland disclosure/disclaimer form
4. Make an offer	Price, terms, contingencies, deposit	✅ Deposit rules for brokers
5. Inspections	Home, radon, well and septic, lead	✅ Licensed inspectors
6. Appraisal and loan approval	The lender values the home	Federal rule: you get a copy
7. HOA or condo documents	Read the rules and fees	✅ Cancel window by law
8. Title and closing prep	Title search, insurance, Closing Disclosure	Title company handles closing
9. Settlement	Sign, pay, get keys	✅ Transfer and recordation taxes
10. After closing	Apply for the Homestead Tax Credit	✅ One-time application

💰 Step 1: Get pre-approved (and check state programs)

Talk to a lender before you start touring. A pre-approval shows sellers you can buy, and it tells you your real budget.

📄 After you apply for a mortgage, the lender must give you a Loan Estimate within three business days (Consumer Financial Protection Bureau). Compare Loan Estimates from more than one lender.
🏛️ Ask about the Maryland Mortgage Program (MMP), run by the Maryland Department of Housing and Community Development. Options include 30-year fixed-rate loans through approved lenders (more below).

📝 Step 2: Sign a written buyer agreement

In Maryland, if you want an agent to represent you, you have to sign a written brokerage agreement. The Maryland Real Estate Commission's form Understanding Whom Real Estate Agents Represent says it plainly: if you're viewing a property and haven't signed a brokerage agreement, the agent represents the seller.

Since Oct. 1, 2024, Maryland law spells out what a buyer agreement must include (Business Occupations and Professions §17-534(c), changed by Senate Bill 542, Chapter 359 of 2024): - ⏳ a definite end date that takes effect automatically, - 💵 the agent's compensation, as a percentage of the price, a dollar amount, or both, - 🤝 whether the broker can be paid by someone other than you (like the seller), and your rights and obligations if so, - ✅ what has to happen for the broker to earn a commission, and - ✋ how either of you can cancel the agreement.

If you haven't signed a brokerage agreement yet, agents have to give you a written disclosure of whom they represent no later than your first scheduled face-to-face meeting (§17-530).

🏠 Step 3: Tour homes and read the disclosure form

For most resale homes, Maryland sellers have to give you a Residential Property Disclosure and Disclaimer Statement on the Real Estate Commission's form, on or before the day you sign the contract (Real Property §10-702). The seller picks one of two options: - Disclosure: the seller lists known defects in things like the roof, foundation, basement, plumbing, electrical, heating and air, water and sewer, insects, and hazardous materials such as lead paint and radon. - Disclaimer: the seller sells "as is," but still has to disclose latent defects they actually know about that a careful look wouldn't reveal and that threaten health or safety.

If you didn't get the form before signing, you can cancel by written notice before you get it or within 5 days after you get it, and get your deposit back. That right can end earlier once you apply for a mortgage, if your lender tells you so in writing. Some sales are exempt, like new homes that were never lived in, foreclosures sold by a lender, and estate sales.

👉 The form itself says it's not a substitute for a home inspection.

✍️ Step 4: Make an offer and put down earnest money

Your agent writes the offer: price, closing date, contingencies (like inspection, appraisal and financing) and your earnest money deposit.

Your contract says who holds the deposit. If a real estate broker holds it, Maryland law says it goes into a separate trust account within 7 business days after both sides accept the contract, unless the parties give the broker other written instructions (§17-502).
If the deal falls apart and there's a dispute, a broker has to follow a written notice process before releasing it. Either side has 30 days to protest (§17-505).

Buying a new home from a builder? Different deposit rules apply. My Harford County new construction guide lists local communities.

🔍 Step 5: Inspections (home, radon, well and septic, lead)

🧰 Home inspection. In Maryland, home inspectors must be licensed by the state (§16-3A-01). Ask for the inspector's license number.
☢️ Radon. The EPA puts Harford County in Radon Zone 1, its highest-potential group. Maryland's Departments of the Environment and Health recommend asking about radon and any past testing or mitigation when you buy.
💧 Well and septic. If the home isn't on public water and sewer, get the well water tested and the septic inspected. In Harford County, the Health Department handles private wells and septic systems.
🎨 Lead paint. For homes built before 1978, federal rules require a lead disclosure and give you a 10-day window to test for lead, unless you agree to a different time or waive it (EPA).

Inspection results often lead to a request for repairs or credits. Your agent negotiates that within the contract's deadlines.

📊 Step 6: Appraisal and loan approval

Your lender orders an appraisal to make sure the home is worth what you're paying. Under federal law, your lender has to give you a copy of the appraisal promptly when it's done, or three business days before closing, whichever comes first (12 CFR §1002.14).

If the appraisal comes in low, you can usually renegotiate, bring more cash, or (if your contract allows) walk away. Then the lender finishes underwriting and issues final approval.

🏘️ Step 7: HOA and condo documents

Buying in a community with a homeowners association or a condo? Maryland gives you time to read the documents and cancel: - HOA (resale): the seller has to give you the HOA disclosures on or before signing or within 20 calendar days after. If you didn't get them at least 5 calendar days before signing, you have 5 calendar days after receiving them to cancel in writing (§11B-106). - Condo (resale): the seller has to give you the condo documents at least 15 days before closing. You can cancel in writing within 7 days of getting all of them (§11-135).

📑 Step 8: Title and closing prep

In Maryland, you choose who handles your closing (§17-524). Most buyers use a title company, which searches the property's title for liens and problems, arranges title insurance, collects and pays out the money, and records your deed.

📬 Your lender must give you the Closing Disclosure at least three business days before you close (CFPB). Compare it line by line with your Loan Estimate.
🚶 Do a final walk-through right before settlement to make sure the home is in the condition you agreed to.

🏛️ Step 9: Settlement, and Maryland's transfer and recordation taxes

At settlement you sign the loan and deed papers and pay your closing costs. In Maryland, that includes transfer and recordation taxes.

The state transfer tax - Normally 0.5% of the price. - For a first-time Maryland home buyer who will live in the home, it drops to 0.25%, and the seller pays all of it (Tax-Property §13-203). - For this break, "first-time" means you've never owned a home in Maryland that was your main residence. You sign a statement under oath.

Who pays the rest? By default, Maryland splits recordation and transfer taxes 50/50 between buyer and seller unless the contract says otherwise. For a first-time Maryland buyer moving in, the seller pays all of the recordation tax and county transfer tax unless you both expressly agree otherwise (Real Property §14-104).

County rates. Each county sets its own recordation tax (charged per $500 of price) and, in most counties, its own transfer tax. Here are the rates for fiscal year 2026 from the Maryland Department of Legislative Services:

County	Recordation (per $500)	County transfer tax
Allegany	$3.50	0.5%
Anne Arundel	$3.50	1.0%–1.5%*
Baltimore City	$5.00	1.5%
Baltimore County	$2.50	1.5%
Calvert	$5.00	0%
Caroline	$5.00	0.5%
Carroll	$6.50	0%
Cecil	$4.10	0.5%
Charles	$7.00	0.5%
Dorchester	$5.00	0.75%
Frederick	$7.00	0%
Garrett	$3.50	1.0%
Harford	$3.30	1.0%
Howard	$2.50	1.25%
Kent	$3.30	0.5%
Montgomery	varies*	varies*
Prince George's	$2.75	1.4%
Queen Anne's	$4.95	0.5%
St. Mary's	$4.00	1.0%
Somerset	$3.30	0%
Talbot	$6.00	1.0%
Washington	$3.80	0.5%
Wicomico	$3.50	0%
Worcester	$3.30	0.5%

*Anne Arundel adds a 0.5% surcharge on sales of $1 million or more. Montgomery has a recordation surcharge over $500,000 and transfer rates that vary by price. Source: Department of Legislative Services, Tax Rates for Local Governments (fiscal 2026, July 2025 to June 2026). Rates can change each July 1, so your title company will confirm the current ones. In Aberdeen, Bel Air and Havre de Grace, the town also has to stamp the deed before the county does.

Harford County, specifically. Harford's county site lists a transfer tax of 1% and a recordation tax of $6.60 per $1,000 (the same as $3.30 per $500). Harford's code also exempts the first $30,000 of the price from the county transfer tax when the buyer will live in the home. That's in the county code and the Department of Legislative Services' August 2026 guide.

Example: a $400,000 Harford County home (my math, using the rates above; your title company figures the real numbers)

Tax	Total	Repeat buyer pays (default 50/50)	First-time Maryland buyer pays (default)
State transfer tax	$2,000 (0.5%), or $1,000 (0.25%) for a first-time buyer	$1,000	$0 (seller pays all)
Harford transfer tax (1% on $370,000)	$3,700	$1,700	$0 (seller pays all)
Harford recordation ($3.30 × 800)	$2,640	$1,320	$0 (seller pays all)
Your share		$4,020	$0

For the repeat buyer, Harford applies the $30,000 exemption to the buyer's share of the county transfer tax, so the buyer's half is $2,000 minus $300. Contracts can change who pays what, so read that section of your offer carefully.

🏡 Step 10: After closing, apply for the Homestead Tax Credit

Maryland's Homestead Tax Credit caps how much your taxable assessment can go up each year on your main home. You have to apply once. It isn't automatic.

📅 Apply on or before May 1 before the first tax year you want the credit (Tax-Property §9-105).
💻 Apply online through Maryland OneStop (Department of Assessments and Taxation), or by mail. You can check your status on SDAT's Real Property search.
📈 The state cap is 10% a year. Counties and towns can set a lower cap. For 2026–2027 tax bills, SDAT lists 5% for Harford County, 10% for Aberdeen and Bel Air, and 5% for Havre de Grace.

🏦 Maryland Mortgage Program: what's available now

The Maryland Mortgage Program (DHCD) offers loans through approved lenders, and most of them come with down payment assistance (DPA) as a 0% deferred second loan. You repay it when you sell, refinance or pay off the first mortgage. These were the options on its site on Nov. 9, 2026:

MMP 1st Time Advantage, for first-time buyers:
Direct: its lowest rates, with no DPA.
6000: $6,000 toward down payment and closing costs.
3%, 4% and 5%: DPA equal to that percentage of the first mortgage.
HomeStart: for incomes at or below 50% of area median income, with DPA equal to 6% of the loan.
First Homes for First Responders and Teachers: 5% DPA.
MMP Flex, for first-time or repeat buyers: Flex Direct, Flex 6000 and Flex 3%.
Specialty loans, including Maryland SmartBuy (student debt), HomeAbility (buyers with disabilities) and the FHA 203K Limited Loan (repairs).

Who qualifies (MMP's rules): - 🎓 You have to complete an approved homebuyer education class, with the certificate dated within 12 months before settlement. - 🏠 For MMP, "first-time" means you haven't owned the home you lived in during the past 3 years. That's a different test than the transfer tax break. Veterans using their exemption for the first time, and buyers in Targeted Areas, have exceptions. - 🏗️ A new home (built within the last 12 months) has to be in a Priority Funding Area.

Harford County limits (MMP limits effective June 24, 2026):

	Outside Targeted Areas	In Targeted Areas
Household income, 1–2 people	$140,759	$164,520
Household income, 3+ people	$161,873	$191,940
Maximum purchase (acquisition) cost	$782,118	$955,922

Source: Maryland Mortgage Program, 2026 Income Limits and Maximum Acquisition Costs (one source). Harford has some Targeted Areas. Check an address on MMP's mapper. Credit, lender and insurer rules also apply.

🤝 Ready to start?

Buying your first home in Harford County or nearby? I'll walk you through every step, from your buyer agreement to the day you get keys.

📞 Call or text (443) 617-2099 📧 Joshua@leetessier.com 📍 Josh Tessier, Lee Tessier Team of eXp Realty, 2225 Old Emmorton Rd Ste 207, Bel Air, MD 21015

Need to sell your current home first? Start with a free price opinion. You'll get an instant automated home value by email, and then I'll call to set up a time to see your home. More: what it costs to sell in Harford County.

Moving here? See the Harford County housing market report for October 2026, home prices by town, the best places to live in Harford County, Harford County schools, the cost of living and moving to Harford County.

❓ FAQs

What are the steps to buying a house in Maryland?

Get pre-approved, sign a written buyer agreement with your agent, tour homes and read the seller's disclosure form, make an offer with an earnest money deposit, get inspections, finish the appraisal and loan approval, review HOA or condo documents, clear title, close with a title company, and then apply for the Homestead Tax Credit.

Do I have to sign a buyer agreement in Maryland?

If you want an agent to represent you, yes. Maryland requires a written brokerage agreement. Without one, the agent showing you a home represents the seller. Since Oct. 1, 2024, the agreement must state an end date, the agent's pay, whether someone else can pay the agent, and how to cancel.

Who pays transfer and recordation taxes in Maryland?

By default, buyer and seller split them 50/50 unless the contract says otherwise. For a first-time Maryland home buyer who will live in the home, the state transfer tax drops to 0.25% and the seller pays it, and the seller also pays the recordation and county transfer taxes unless both sides agree otherwise.

Is there a first-time homebuyer program in Maryland?

Yes. The Maryland Mortgage Program's 1st Time Advantage loans come with options like $6,000 or 3% to 5% in 0% deferred down payment help. You must take a homebuyer education class and meet income and purchase price limits. In Harford County, the income limit outside Targeted Areas is $140,759 for 1–2 people.

Do Maryland sellers have to disclose problems with the house?

Most resale sellers must give you Maryland's disclosure or disclaimer form by the time you sign. A disclaimer means "as is," but the seller still has to disclose known hidden defects that threaten health or safety. If you didn't get the form, you can cancel before you get it or within 5 days after, though a lender's written notice or closing can end that right sooner.

Should I test for radon when buying a house in Maryland?

It's a good idea. The EPA puts Harford County in Radon Zone 1, its highest-potential group, and Maryland's environment and health departments recommend asking about radon testing and mitigation when you buy. If you test, schedule it within your contract's inspection period.

When do I apply for the Maryland Homestead Tax Credit?

Apply once, on or before May 1 before the first tax year you want the credit, through Maryland OneStop or by mail. It caps yearly increases in your home's taxable assessment. For 2026–2027 tax bills, Harford County's cap is 5%, and the state's is 10%.

Follow along for more Harford County news and real estate tips: YouTube | Instagram | Facebook

About the author: Josh Tessier is a Harford County REALTOR® with the Lee Tessier Team at eXp Realty, based in Bel Air. He has been licensed in real estate since 2011 and has personally sold 600+ homes, and the Lee Tessier Team has sold 5,900+. He lives in Harford County and is raising his family here. Call or text (443) 617-2099.

This post is general information, not legal, tax or lending advice. Laws, rates and program limits change. Your title company figures the exact taxes at settlement, and an MMP-approved lender confirms loan eligibility. Statutes and program pages were checked Nov. 9, 2026.