9 Steps in Your Maryland Homebuying Process

Buying your first home can be overwhelming. But if you break it down into simple steps, you can feel much more confident and focus on the excitement of the process rather than the stress of it. Here’s what you can expect when buying a home in Maryland.

1. Save Up for Your Down Payment and Closing Costs

Before you fill out any paperwork, start saving up for your down payment. Down payment requirements vary by loan program, lender guidelines, and borrower qualifications. Some loan options may allow lower down payments for qualified borrowers. Regardless, you’ll want to make sure you have enough on hand to put down a good amount of money. The more you put down up front, the lower your monthly mortgage payments will be. You’ll also need money to pay for your closing costs if you’re not financing them into your mortgage. The average closing costs for a home in Maryland in 2025 are $9,218, per Bankrate.

2. Clean Up Your Credit

Check your credit report and credit score before applying for a loan. By law, you can get a free copy of your credit report every 12 months at annualcreditreport.com. Be sure to review your credit report for any errors and dispute them early on in your home buying process. It can take time for credit bureaus to change incorrect information, so cleaning up your credit may take a while. If you're a Securityplus FCU Digital Banking user, our free Credit Score & Report Monitoring tool makes it easy to track your score and get tips on how to improve it.

3. Determine How Much Home You Can Afford

Before you start shopping for houses, determine your budget to get a sense of what you can afford. You can use our home affordability calculator to estimate how much you may be able to afford. This will give you and your real estate agent a good idea of your range. Remember, you may get approved for more than you can realistically afford, since most calculators and mortgage companies don’t ask about or factor in every regular expense. It’s wise to add a dose of common sense to any mortgage payment decision to ensure you can comfortably afford your monthly payments.

4. Get Pre-Approved for a Mortgage

Another step you’ll want to complete before house shopping is to get pre-approved or pre-qualified, depending on your lender's process, for a home loan. This will show sellers you are a serious potential buyer, which can help in the negotiation process.

5. Shop for a Home Within Your Budget

Now comes the fun part: shopping for your dream home in Maryland. Before you begin, determine which amenities are nonnegotiable for you and which aren’t. It’s also important to consider the neighborhood and quality of local school districts. Ask your friends and family to refer a good real estate agent who can help you navigate the process.

6. Make an Offer on the House You Want

When you find the home you’d like to buy, it’s time to make an offer and negotiate. Your real estate agent should be able to guide you through this process and handle everything on your behalf. A good rule of thumb is to offer at least 5% below asking price. Your real estate agent can help you determine a competitive offer based on local market conditions. Make sure you know the selling prices of other comparable homes as well so you can negotiate accordingly.

7. Submit Your Mortgage Application

To finance your home, you’ll need to submit your mortgage application. Securityplus FCU offers a variety of mortgage options, from fixed-rate mortgages and adjustable-rate mortgages to First-Time Homebuyer mortgages, FHA loans, VA loans, and more. Loan payment terms also vary and typically range from 15 to 30 years for most loan types. Talk to your mortgage officer to figure out what works best for you and your family.

8. Close the Sale on Your Home

You’ll need to have your home inspected before you can move in. Home inspections are a great way to figure out if the house has any major defects before you are locked into the sale. This can also help with your negotiation, as many buyers ask sellers to fix things or lower the price based on the inspection results. At closing, the settlement agent or title company will guide the process for transferring funds and documents. Depending on your situation and local practice, you may also choose to consult an attorney.

9. Move Into Your New Maryland Home

Once you’ve completed the process, you’ll be handed the keys to your new home. Start packing and calling up your friends to help you move, or get ready to hire a moving company. Don’t forget to set the date for your housewarming party! Buying a home is a major milestone and should be handled with care. Make sure you find friendly and knowledgeable people along the way to help make your homebuying journey as seamless as possible. If you’re ready to talk to a mortgage officer, contact Securityplus FCU today.