Average closing costs in Maine

The rugged coastline, charming towns, and endless outdoor adventures of Maine beckon countless dreamers. But before setting anchor in your perfect Maine home, understanding closing costs is crucial for a smooth sailing journey. Fear not, future Mainer! This guide will equip you with the knowledge to navigate the closing cost currents and confidently cast your line in the Pine Tree State.

I. Setting Sail:

Closing costs, those additional expenses beyond the purchase price that finalize the property transfer, can be a bit of a hidden reef. In Maine, these costs can range from 2% to 5% of the purchase price, with an average of $1,961 according to ClosingCorp’s 2021 report.

Several factors influence your final closing cost, including:

  • Property type: Single-family homes generally have higher closing costs than condos or townhomes.
  • Property location: Costs can vary by county, city, and even neighborhood.
  • Loan type: FHA loans typically have higher closing costs than conventional loans.
  • Down payment amount: A larger down payment reduces some closing costs.
  • Negotiation: Certain fees may be negotiable with the seller or service providers.

II. Charting the Course:

Let’s break down the common closing costs you might encounter in Maine:

Loan-related fees:

  • Origination fees: 0.5-1% of the loan amount, covering the lender’s processing costs.
  • Appraisal fees: $400-$600, for a professional assessment of the property’s value.
  • Underwriting fees: $300-$500, to evaluate your creditworthiness and loan risk.
  • Credit report fees: $25-$50, for obtaining your credit history.

Government recording and transfer taxes:

  • State recording tax: 0.11% of the purchase price, paid to the state for recording the property deed.
  • County transfer tax: Varies depending on the county, typically ranging from 0.2% to 1.5% of the purchase price.

Title insurance: Protects the lender’s interest, typically costing 0.5-1% of the purchase price.

HOA fees: Applicable for condo or community living, covering common area maintenance and amenities.

Prepaid costs:

  • Property taxes: Prorated based on the closing date, covering the remaining portion of the year.
  • Homeowner’s insurance: Generally one year upfront, providing protection against property damage and liability.
  • Interest payments: Prorated based on the closing date, covering accrued interest on the loan from closing to the first payment due date.

Other potential fees:

  • Survey fees: $300-$500, to verify property boundaries and avoid encroachments.
  • Attorney fees: Optional, but recommended for complex transactions, typically ranging from $500 to $1,500.
  • Courier fees: For document delivery and processing, can vary depending on the service provider.

III. Mastering the Maine Maneuvers:

Understanding these factors is key to minimizing your closing costs:

  • Property type: Consider the cost implications of your desired property type.
  • Location awareness: Research closing cost variations in different areas.
  • Loan selection: Choose a loan type that aligns with your financial situation and closing cost tolerance.
  • Down payment power: A larger down payment reduces loan amount and associated closing costs.
  • Negotiation prowess: Don’t hesitate to negotiate certain fees with the seller or service providers.

IV. Cost-Saving Strategies for Savvy Mainers:

Be proactive and utilize these strategies to trim your closing cost sails:

  • Shop around for lenders: Compare closing cost estimates to find the best deal.
  • Pre-approval power: Get pre-approved to lock in interest rates and avoid potential cost adjustments.
  • Negotiation ninja: Negotiate with the seller to cover some closing costs, especially in a buyer’s market.
  • Lender credits: Ask for credits from the lender based on your creditworthiness or loan type.
  • Down payment assistance: Explore programs offered by the Maine State Housing Authority.

V. Bon Voyage into Maine:

Closing costs may seem like a hidden lobster trap, but with knowledge and proactive strategies, you can navigate the Maine currents and confidently drop anchor in your dream home. Remember, research, comparison, and negotiation are your friends! Consult with a local financial advisor or real estate agent for personalized guidance and a smooth closing experience.

Additional Resources:


Q: What are closing costs?
A: Closing costs refer to the expenses incurred by buyers and sellers during the real estate transaction, typically paid at the closing or settlement of a property transaction.

Q: What is included in Maine’s closing costs?
A: Some typical closing costs in Maine include lender fees, appraisal fees, title search and insurance fees, attorney fees, recording fees, and taxes. However, the exact costs can vary depending on the specific circumstances of the transaction.

Q: How much are the average closing costs in Maine?
A: The average closing costs in Maine vary, but they typically range between 2% and 4% of the home’s purchase price. For example, if you are buying a home worth $300,000, you can expect to pay between $6,000 and $12,000 in closing costs.

Q: Can I negotiate closing costs in Maine?
A: Yes, it is possible to negotiate closing costs in Maine. Some fees may be negotiable, while others are typically set by specific regulations or lenders. It is recommended to discuss this with your real estate agent or attorney to identify which fees could potentially be negotiated.

Q: Are there any programs or assistance available to help with closing costs in Maine?
A: Yes, there are various programs and assistance options available to help with closing costs in Maine. These can include government-sponsored grants, loans, or down payment assistance programs specifically designed to assist homebuyers with their closing costs. It’s advisable to reach out to local housing agencies or mortgage lenders to explore your eligibility for such programs.

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