Short answer: Most Maryland first-time buyers follow the same path: set a budget, take a homebuyer education class, get preapproved, choose an agent, make an offer, finish inspections and the appraisal, then settle. In Anne Arundel County, where the September 2026 median sale price was $503,000, principal and interest at Freddie Mac's 7.32% average (as of October 22, 2026) runs about $3,110 a month with 10% down. The Maryland Mortgage Program can add down payment help, such as a $6,000 or 3% to 5% deferred, zero-interest loan, for buyers who meet its income and price limits.
Scott Smolen is a local Realtor helping buyers and sellers in Crofton, Odenton, Gambrills, Bowie, Severn and the Fort Meade area. This guide walks through the Maryland home buying process, a checklist you can print, Anne Arundel County payment math, ways to save for a down payment and the state's Maryland Mortgage Program. We will update the numbers as new data comes out.
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.
| Done | Stage | Task |
|---|---|---|
| [ ] | Budget | List monthly income and debts; estimate your debt-to-income ratio. |
| [ ] | Budget | Set a savings target for down payment, closing costs and a cash cushion. |
| [ ] | Education | Complete an approved homebuyer education class and keep the certificate. |
| [ ] | Financing | Gather pay stubs, W-2s or tax returns, bank statements and photo ID. |
| [ ] | Financing | Apply with at least two lenders and compare Loan Estimates. |
| [ ] | Financing | Ask an MMP-approved lender whether you qualify for down payment assistance. |
| [ ] | Agent | Interview agents; review and sign a written buyer agreement. |
| [ ] | Search | Write down must-haves, nice-to-haves and deal-breakers. |
| [ ] | Offer | Review comparable sales, price, deposit, contingencies and settlement date. |
| [ ] | Under contract | Schedule the home inspection; consider radon and other tests. |
| [ ] | Under contract | Shop for homeowners insurance and send proof to the lender. |
| [ ] | Closing | Review the Closing Disclosure at least three business days before closing. |
| [ ] | Closing | Verify wiring instructions by phone using a number you already trust. |
| [ ] | Closing | Do the final walkthrough; bring ID and certified funds as instructed. |
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.
| Down payment | Cash down | Loan amount | Monthly principal and interest |
|---|---|---|---|
| 3% | $15,090 | $487,910 | $3,352 |
| 5% | $25,150 | $477,850 | $3,282 |
| 10% | $50,300 | $452,700 | $3,110 |
| 20% | $100,600 | $402,400 | $2,764 |
Worked example: checking the payment against income. With 10% down, principal and interest is about $3,110. Add $500 of other monthly debt payments and the total is $3,610. On a gross monthly income of $12,000, that is about 30% of income before property taxes, homeowners insurance, mortgage insurance and any HOA dues are added.
Rate sensitivity (hypothetical). If the rate were one point lower, at 6.32%, the same $452,700 loan would cost about $2,808 a month, roughly $302 less.
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.
| Product | Who it is for | Down payment assistance |
|---|---|---|
| 1st Time Advantage Direct | First-time buyers | No MMP assistance; usually MMP's most competitive rate. Outside assistance may be used. |
| 1st Time Advantage 6000 | First-time buyers | $6,000 zero-interest deferred second loan for down payment and closing costs; eligible for Partner Match up to $2,500. |
| 1st Time Advantage 3%, 4% or 5% | First-time buyers | Zero-interest deferred loan equal to 3%, 4% or 5% of the first mortgage. |
| HomeStart | Income at or below 50% of area median income | Zero-interest, 30-year deferred loan equal to 6% of the first mortgage. |
| Flex 6000 or Flex 3% | First-time or repeat buyers | $6,000 or 3% of the first mortgage, zero-interest and deferred. |
| Maryland SmartBuy | Buyers with at least $1,000 of student debt; 720 minimum credit score | Up to 15% of the price (maximum $25,000) to pay off student debt, forgiven after 5 years. |
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.
| Limit | Non-Targeted Area | Targeted Area |
|---|---|---|
| Household income, 1 or 2 people | $140,759 | $164,520 |
| Household income, 3 or more people | $161,873 | $191,940 |
| Maximum acquisition cost | $782,118 | $955,922 |
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?
Before you shop
- Get preapproved before you tour so you know your price range.
- Budget for closing costs and moving, not just the down payment.
- Ask your lender before opening new credit or changing jobs.
When you find the home
- Look at the full monthly cost: taxes, insurance and HOA dues.
- Keep the inspection; it protects you from surprises.
- Read every document, and ask until you are comfortable.
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.
Frequently asked questions
Do I need 20% down to buy my first home in Maryland?
No. Many first-time buyers put down far less. NAR's 2025 Profile of Home Buyers and Sellers reports a 10% median down payment for first-time buyers. HUD says FHA's minimum required investment is 3.5% in most cases, Fannie Mae's HomeReady allows as little as 3% down, and VA-backed purchase loans often need no down payment when the price is not above the appraised value. A smaller down payment usually means a larger loan and, on many loans, mortgage insurance.
How much house can I afford in Anne Arundel County?
Start with the payment, not the price. At the county's $503,000 September 2026 median and Freddie Mac's 7.32% 30-year average (October 22, 2026), principal and interest is about $3,352 a month with 3% down, $3,110 with 10% down and $2,764 with 20% down. Taxes, insurance, mortgage insurance and HOA dues come on top. A lender will compare your total monthly debts with your gross income (your debt-to-income ratio) before approving a loan.
Who counts as a first-time homebuyer for the Maryland Mortgage Program?
The Maryland Mortgage Program treats someone who has not owned residential property for three years or more as a first-time homebuyer. Honorably discharged veterans using their exemption for the first time, and buyers purchasing in a Targeted Area, may also qualify for certain products. An MMP-approved lender confirms eligibility.
How much down payment assistance can I get through the Maryland Mortgage Program?
It depends on the product. The 1st Time Advantage line includes a $6,000 assistance loan and loans equal to 3%, 4% or 5% of the first mortgage, all as zero-interest deferred second liens. HomeStart offers 6% for households at or below 50% of area median income. On the 6000 products, MMP matches assistance from an approved Partner up to $2,500. The deferred loan is due when the first mortgage ends, such as at a sale or refinance.
What are the 2026 Maryland Mortgage Program limits in Anne Arundel County?
Under the limits effective June 24, 2026, the household income limit outside Targeted Areas is $140,759 for 1 or 2 people and $161,873 for 3 or more, and the maximum acquisition cost is $782,118. In Targeted Areas the limits are $164,520 and $191,940, with a $955,922 maximum acquisition cost. Limits change, so confirm them with an MMP-approved lender.
Do I need a homebuyer education class?
For the Maryland Mortgage Program, yes. MMP requires an approved homebuyer education class before approval, and the certificate must be issued within 12 months before settlement. Fannie Mae's HomeReady also requires homeownership education when all occupying borrowers are first-time buyers. Taking the class before you sign a contract is a good idea.
Get your first-time buyer plan
Tell us your budget, timing and the towns you like, and we will map out next steps, from your financing timeline to the homes that fit. Call The Scott Smolen Team at 301-651-1261.
The Scott Smolen Team at RE/MAX Leading Edge, 1655 Crofton Blvd, Suite 203, Crofton, MD 21114.
Disclaimer: This article is general information, not financial, tax or legal advice, and it is not a loan offer, rate quote or commitment to lend. Program terms, limits, rates and market data change often. Mortgage rates are Freddie Mac PMMS weekly averages as of October 22, 2026; Freddie Mac publishes new averages every Thursday. Payment examples are principal and interest only and are for illustration. Confirm eligibility and costs with a licensed mortgage lender and, for legal questions, a Maryland attorney.
Sources:
- Freddie Mac, Primary Mortgage Market Survey, U.S. weekly averages as of October 22, 2026: View official source (accessed October 22, 2026)
- Maryland REALTORS, Housing Statistics: September 2026 (Bright MLS data, current as of October 12, 2026): View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), MMP 1st Time Advantage: View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), Down Payment Assistance: View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), MMP Flex Loans: View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), Loan Eligibility: View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), 2026 Income Limits and Maximum Acquisition Costs (effective June 24, 2026): View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), Homebuyer Education: View official source (accessed October 19, 2026)
- Maryland Mortgage Program (DHCD), Maryland SmartBuy Loan: View official source (accessed October 19, 2026)
- NAR, First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40 (2025 Profile of Home Buyers and Sellers): View official source (accessed October 19, 2026)
- NAR, Consumer Guide to Written Buyer Agreements: View official source (accessed October 19, 2026)
- HUD, FHA Myths vs. Facts: View official source (accessed October 19, 2026)
- HUD, For Your Protection: Get a Home Inspection (HUD-92564-CN): View official source (accessed October 19, 2026)
- Fannie Mae, HomeReady Mortgage: View official source (accessed October 19, 2026)
- VA, Purchase Loan: View official source (accessed October 19, 2026)
- CFPB, What is a debt-to-income ratio?: View official source (accessed October 19, 2026)
- CFPB, What is a Loan Estimate?: View official source (accessed October 19, 2026)
- CFPB, What is a Closing Disclosure?: View official source (accessed October 19, 2026)
- CFPB, Your Mortgage Closing Checklist: View official source (accessed October 19, 2026)