Maryland Real Estate Insights

What are the steps to buying a home in Maryland?

Every purchase is different, but most first-time buyers move through these eight steps in roughly this order.

1. Set your budget and check your credit

Add up your savings, monthly debts and income. Lenders look at your debt-to-income ratio, which the CFPB defines as all of your monthly debt payments divided by your gross monthly income. Different loans and lenders set different limits.

2. Take a homebuyer education class

If you plan to use the Maryland Mortgage Program, an approved class is required before approval, and the certificate must be issued within 12 months before settlement. Classes can also point you to assistance you did not know about.

3. Get preapproved and compare lenders

A preapproval tells you what a lender is willing to lend and makes your offer more credible. After you apply, a lender must give you a Loan Estimate within three business days, so you can compare rates and costs side by side. Our guides to the 2026 Maryland mortgage rate outlook and Mortgage Broker vs. Bank: Which Is Better for Maryland Homebuyers? can help you prepare.

4. Choose a buyer's agent

Since August 17, 2024, buyers working with a REALTOR are asked to sign a written buyer agreement before touring a home, in person or virtually. NAR notes these agreements, including compensation, are negotiable. Read it carefully and ask questions before you sign.

5. Tour homes and make an offer

Your agent pulls comparable sales, helps you set a price and terms, and explains deposits and contingencies. In a competitive pocket, terms can matter as much as price.

6. Inspect the home and complete the appraisal

HUD reminds buyers that an appraisal estimates value for the lender and is not a home inspection. A home inspection happens only if you arrange one, and asking early may let you make the contract contingent on the results.

7. Get final loan approval and review your Closing Disclosure

Your lender must give you the Closing Disclosure at least three business days before you close. Compare it with your Loan Estimate and ask about anything that changed.

8. Do a final walkthrough and settle

Confirm the home's condition, then sign at settlement. Before wiring any money, verify the instructions by phone with a number you already trust. The CFPB warns that scammers send fake wiring instructions by email.

A printable buying-a-home checklist

Print this page or save it as a PDF and check off each item as you go.

How much house can I afford in Anne Arundel County?

Two numbers anchor the math. Maryland REALTORS reports, from Bright MLS data, that Anne Arundel County's median sale price was $503,000 in September 2026, up 2.4% from $490,990 a year earlier. Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed average at 7.32% as of October 22, 2026. Here is what that median price costs each month at different down payments.

These figures are principal and interest only, use a national average rate for borrowers with strong credit and 20% down, and assume a 30-year fixed loan. Your quote can be higher or lower. For a fuller monthly budget, see our true cost of owning a home in Anne Arundel County.

How can I save for a down payment faster?

NAR's 2025 Profile of Home Buyers and Sellers found that first-time buyers most often used personal savings (59%), followed by financial assets such as a 401(k) or stocks (26%) and gifts or loans from family and friends (22%). Strategies that help:

• Know your real target. HUD says FHA's minimum required investment is 3.5% in most cases, and Fannie Mae's HomeReady allows as little as 3% down. Your target may be smaller than you think, but plan for closing costs too.
• Automate it. Send a set amount to a separate savings account each payday so the money is out of sight.
• Use gifts the right way. HUD notes the FHA minimum investment can come from your own funds, gifts, second mortgages and grants through assistance programs. Ask your lender how gifts must be documented before money moves.
• Layer in assistance. Maryland Mortgage Program loans, MMP Partner Match funds, employers, builders and local governments may all offer help (see the next section).
• Clear student debt with SmartBuy. Maryland SmartBuy can pay off up to 15% of the purchase price (maximum $25,000) in qualifying student debt at closing, as a zero-interest loan forgiven after 5 years in the home.
• Do not drain everything. Keep a cash cushion after closing. Note that MMP eligibility can be affected if liquid assets exceed 20% of the purchase price.

Once you own, equity can become your next savings engine. Our post on how first-time homeowners can build wealth with real estate explains how.

What down payment assistance is available through the Maryland Mortgage Program?

The Maryland Mortgage Program (MMP) is run by the Maryland Department of Housing and Community Development (DHCD). It offers 30-year fixed-rate loans through approved lenders, and most of its products include down payment assistance. You generally must occupy the home as your primary residence, not own other residential property, complete homebuyer education and meet income, credit score and purchase price limits.

The deferred assistance loans carry no monthly payment, but they become due when the first mortgage ends, for example when you sell, refinance or pay off the loan. A $450,000 first mortgage with a 3% assistance loan, for example, would come with $13,500 of deferred assistance.

Anne Arundel County is a partially targeted county, so the limits depend on the address. MMP's online mapper shows whether a property is in a Targeted Area, and an MMP-approved lender can confirm which products you qualify for.

What should first-time buyers know before making an offer?

If you already own and are moving up, see buying and selling a home at the same time. Buying from out of state or on PCS orders? Read Buying a House Sight Unseen in Maryland. Homeowners thinking about equity can compare options in HELOC vs. Home Equity Loan: The Difference, Pros and Cons and Reverse Mortgage Pros and Cons for Maryland Homeowners 62 and Older.

What are mortgage rates today?

Freddie Mac's Primary Mortgage Market Survey (PMMS) is the most widely cited weekly average. For the week ending October 22, 2026, the 30-year fixed averaged 7.32%, down from 7.40% the prior week, and the 15-year fixed averaged 6.68%, down from 6.71%. A year earlier, the 30-year averaged 6.19% and the 15-year averaged 5.44%.

In other words, the 30-year average has climbed about 1.3 percentage points from its February low, and nearly half of that rise (0.61 point) came after early September. The PMMS reflects borrowers with good to excellent credit, a 20% down payment and a home purchase loan on an owner-occupied single-family home, so your own quote can be higher or lower.

Are mortgage rates expected to drop?

Not meaningfully, according to the two forecasts we track. Both were published in October 2026 and both are built on Freddie Mac's 30-year rate.

Fannie Mae notes that its interest rate forecasts are based on rates as of September 30, 2026, before the early October run-up. The MBA expects rates to "come down from their recent peaks" but to stay on a higher path than it previously forecast, and its table shows the 30-year near 7.0% by the end of 2028. Forecasts change every month, so treat these as the current best estimates, not promises.

Will mortgage rates go down in 2026?

With about ten weeks left in the year, neither forecast calls for a drop before year-end. Fannie Mae puts the fourth-quarter 2026 average at 7.4% and the MBA at 7.3%, compared with a first-quarter 2026 average of 6.1% in both forecast tables. A sharp drop would likely require a surprise, such as much cooler inflation data or a big rally in the bond market.

The Federal Reserve's September rate hike made headlines, but the Fed does not set mortgage rates directly. Thirty-year rates follow the bond market, inflation expectations and the economic outlook. We explain that in The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?

When will mortgage rates drop?

Nobody knows the date, and anyone who promises one is guessing. Based on the October 2026 forecasts, the MBA sees only a gradual slide (7.2% through most of 2027, 7.1% in late 2027), while Fannie Mae sees rates holding near 7.5% through 2027. What to watch each month:

• The weekly Freddie Mac PMMS release every Thursday at 12 p.m. ET.
• Monthly inflation reports and the 10-year Treasury yield, which longer-term mortgage rates tend to track.
• Each new Fannie Mae and MBA forecast. We update this page when they change.

What does a rate change mean for a Maryland mortgage payment?

Here is a real Anne Arundel County example. Maryland REALTORS reports the county's September 2026 median sales price at $503,000. With 20% down ($100,600), the loan is $402,400. The table shows principal and interest only; taxes, insurance and any HOA dues are extra.

The takeaway: the MBA's late-2027 forecast would save about $59.95 a month on this loan. That is real money, so weigh it against what could happen to prices and your rent while you wait. Going all the way back to the 2026 low would save about $356.79 a month, but neither forecast expects that.

How can you get the best mortgage rate today?

The "best mortgage rates today" are the ones quoted to you, on the same day, for the same loan. A few steps help in any market:

• Compare at least two or three Loan Estimates on the same day. Rates change daily, so same-day quotes are the only fair comparison. Ask each lender for a Loan Estimate so you can compare costs.
• Look at the APR and the points, not just the rate. A lower rate that costs two points may not be the better deal if you plan to move or refinance.
• Protect your credit and down payment. The PMMS average reflects strong credit and 20% down; weaker credit or less down usually prices higher.
• Ask about VA loans if you serve or served. We often work with VA buyers near Fort Meade, Odenton and Crofton. Compare VA quotes with conventional quotes from the same lender.
• Already own a low-rate home? Tapping equity with a second loan may beat a cash-out refinance. Ask a qualified lender to explain home equity loans, HELOCs, and any age-based mortgage options that may apply.

What do higher rates mean for Anne Arundel County buyers and sellers?

Higher rates have slowed sales, but prices are still edging up. Maryland REALTORS' September 2026 numbers (Bright MLS data) for Anne Arundel County:

Buyers have more choices and a bit more time than a year ago. Sellers can still do well, but pricing and presentation matter more. Sellers should read What Higher Mortgage Rates Mean for Maryland Home Sellers.

Related reading from The Scott Smolen Team

• The Fed Raised Rates: Does That Mean Mortgage Rates Are Going Up?
• What Higher Mortgage Rates Mean for Maryland Home Sellers