What Are the Common Closing Cost Fees When Buying a Home in Harford County? A local realtor breaks it down for you
I work with buyers all over Harford County, and one thing that consistently catches people off guard is how many fees show up at closing. It can be especially shocking for my first time home buyers. Since I walk clients through this every day, I want to break down the most common costs so you have a clear picture of what to expect when you get to the settlement table.
Home Inspection Costs
Inspections are not technically part of your closing costs, but buyers often group them together since they happen during the same stretch of the buying process. A general home inspection gives you a clear look at the home’s overall condition. Many buyers also choose add-ons like radon, well and septic, termite, or chimney inspections depending on the property. Radon is very common in Harford County, so most buyers include that test.
You should plan for at least $500 for a general inspection. If the home is well and septic, those additional inspections usually bring the total closer to $1,000 to $1,300.
Appraisal Fee
Your lender will order an appraisal to confirm the value of the home. This protects both you and the lender by making sure the property is worth the price you are paying. In Harford County, most appraisal fees fall between $450 and $700 depending on the size and type of home. Some lenders collect this fee upfront while others include it in your closing costs.
Here is a tip I give my home buyers. Schedule your home inspection first and wait to order the appraisal until you know the transaction is moving forward. I have seen buyers pay for an appraisal and then walk away from the deal because the inspection uncovered something unexpected.
Loan Related Fees
If you’re financing your home, your lender will charge several standard fees. These usually include the application fee, the credit report fee, and sometimes an origination fee. The origination fee is often the largest and is typically around one percent of the loan amount, although it varies by lender. You can usually expect $1,000 to $2,500 in total lender-related fees depending on the loan type and lender.
Title Search and Title Insurance
Your title company plays an important role in protecting your purchase. They run a full title search to confirm that the seller has the legal right to transfer the property and to check for any liens or ownership issues. You will also see a charge for lender’s title insurance, which protects the lender after closing. Buyers can also choose owner’s title insurance, and I strongly recommend it.
Title costs are based on the purchase price. A good estimate is 0.5 to 1 percent of the purchase price. For a $400,000 home, expect $2,000 to $4,000 for the full title package.
Taxes and Government Charges
Maryland buyers will see several state and county fees at closing. These typically include transfer taxes and recordation taxes. Harford County has its own local requirements as well. Depending on your settlement date, your lender may also collect prepaid property taxes and interest. Transfer and recordation taxes often total 1.5 to 2 percent of the purchase price, though this varies based on whether the buyer and seller split them.
Escrow and Prepaid Items
Many lenders require an escrow account to cover future property taxes and homeowner’s insurance. At closing, you may prepay a portion of your insurance premium and deposit a few months of taxes into the escrow account. These are not fees, but they do affect your total cash needed at closing. Plan for $1,000 to $2,000 depending on the timing and local property tax rates.
Settlement or Attorney Fee
This fee covers the settlement company or attorney who prepares your documents, manages the funds, and oversees the closing. Most settlement fees in Maryland fall between $500 and $1,000.
Earnest Money Deposit (EMD)
Your EMD shows the seller you are serious about your offer. In Harford County, the typical EMD is 1 percent of the purchase price, but there is no set amount. However, in competitive situations, the higher the EMD, the stronger your offer will appear. The good news is that this money is not an extra fee. It is credited back to you at closing and goes toward your down payment or closing costs.
Down Payment
Your down payment is the amount you put toward the purchase price upfront. Many buyers think they need twenty percent down, but that is not always the case.
Here are the most common down payment ranges:
- FHA loans: as low as 3.5 percent
- Conventional loans: usually 3 to 5 percent for qualified buyers
- VA loans: often 0 percent down for eligible borrowers
Conclusion
Closing costs can feel confusing when you are buying a home, especially if it is your first time, but having the right guidance makes the process much easier. If you ever have questions about what your closing costs might look like or want help estimating the full amount you will need at settlement, I am always here to walk you through it.
As a local Harford County Realtor, I guide home buyers through this regularly and can break everything down in a straightforward way. If you are thinking about purchasing a home in Harford County, reach out to me any time. I am here to make the process smooth, predictable, and stress free.