Buying a home in Leonardtown and wondering how much cash you’ll need to bring to the closing table beyond your down payment? You’re not alone. Closing costs can feel confusing because they combine lender fees, title and settlement charges, government taxes, and prepaid items. In this guide, you’ll learn exactly what “closing costs” include, how to estimate them for a Leonardtown purchase, and the steps to get a precise number before you sign. Let’s dive in.
What closing costs include
Closing costs are separate from your down payment. They typically cover:
- Lender fees and third-party charges (origination, underwriting, appraisal, credit report)
- Title search, title insurance policies, and settlement services
- Government transfer and recordation taxes and recording fees
- Prepaid items and escrow reserves (homeowner’s insurance, prepaid interest, and property tax reserves)
- Inspections, survey, and any HOA/condo transfer or document fees
A common rule of thumb is to budget about 2% to 5% of the purchase price for closing costs on a financed purchase. The exact amount depends on your loan type, down payment, lender pricing, title premiums, and any seller concessions you negotiate.
How much to budget in Leonardtown
Use these purchase-price scenarios to set expectations. These examples exclude your down payment and use the 2% to 5% guideline:
- $300,000 purchase: budget roughly $6,000 to $15,000
- $500,000 purchase: budget roughly $10,000 to $25,000
- $750,000 purchase: budget roughly $15,000 to $37,500
Your actual total will depend on your lender quote, title/settlement estimate, tax prorations, and whether you receive any seller credits.
Line-by-line costs explained
Lender fees and appraisal
These include origination, underwriting and processing, a credit report, and an appraisal.
- Origination fee: often 0.5% to 1.5% of the loan amount
- Appraisal: typically $400 to $800
- Credit report: usually $25 to $75
- Underwriting/processing: often a few hundred dollars combined
- Discount points: optional; 1 point equals 1% of the loan amount
On a $300,000 purchase with 10% down, lender-related costs can land around $1,500 to $5,000 depending on points and the lender’s fee structure.
Title and settlement
You’ll see charges for the title search and exam, title insurance policies, the settlement (closing) fee, and related services like notary or courier.
- Settlement/title search fee: about $300 to $900
- Lender’s title insurance: commonly 0.5% to 1.0% of the loan amount (one-time)
- Owner’s title insurance: similar one-time premium; in many Maryland markets sellers pay this, but practices vary by county and contract
Maryland title premiums often follow regulated schedules. A local title company can quote exact premiums for your price and loan amount.
Government taxes and recording
Maryland charges transfer and recordation taxes at the state and county levels. The buyer typically pays to record the deed of trust/mortgage. Who pays transfer and recordation taxes can vary by county rules and local custom, and it can be negotiated in your contract. The amounts range from a few hundred to several thousand dollars, depending on the purchase price and the county rate. Your title company will estimate these for you once you are under contract.
Prepaids and escrow reserves
Your lender will collect certain prepaid items at closing.
- Homeowner’s insurance: the first-year premium is often due at closing, commonly $600 to $2,000+ depending on coverage
- Prepaid interest: from your closing date to month-end
- Escrow reserves: typically 2 to 6 months of property tax and insurance reserves to set up your escrow account
Property taxes are prorated at closing based on your settlement date. The seller is credited for their share; you pay your share going forward.
Inspections and survey
Buyers typically pay for inspections and any survey.
- General home inspection: $300 to $700
- Pest/termite: $50 to $200
- Septic/well (if applicable): $200 to $700
- Survey: $300 to $900
Mortgage insurance
If your down payment is below program thresholds, mortgage insurance may apply.
- Conventional PMI: varies widely, roughly 0.3% to 1.5% of the loan amount per year
- FHA: an upfront mortgage insurance premium (often about 1.75% of the loan) plus monthly premiums, per current FHA guidance
- VA: a funding fee, which is typically financed
Ask your lender to explain how these apply to your loan scenario.
Other potential costs
- HOA/condo transfer or document fees: commonly $100 to $400
- Local utility transfer fees
- Special assessments
- Repairs negotiated after inspections
Local factors in St. Mary’s County
Leonardtown and surrounding areas have a mix of town and rural properties. That can affect your final numbers.
- Transfer and recordation: Maryland assesses these at the state and county levels, and the customary payer can vary. Confirm who typically pays in St. Mary’s County with your title company.
- Property taxes: Your tax prorations depend on St. Mary’s County rates and the property’s assessment. Ask about any local credits or exemptions you may qualify for after closing.
- Septic and well: Many homes outside denser areas have private systems. Budget for septic and well inspections, plus potential repairs.
- HOA/condo: Review HOA transfer and document fees early to avoid surprises.
Who pays what in Maryland
Customs can differ by county and by contract. In many Maryland markets, sellers pay the owner’s title insurance policy, while buyers pay the lender’s policy and settlement fee. Transfer and recordation taxes are sometimes split or paid according to local custom or negotiation. In St. Mary’s County, confirm the current practice with your agent and title company before you write your offer.
Seller concessions are allowed and can cover eligible buyer closing costs. Note that some loan programs cap concessions. Your lender can tell you the maximum credit allowed for your loan type and down payment.
Examples: what your costs might look like
Use these as general illustrations. Get a lender Loan Estimate and a title quote for a precise figure.
Scenario A: $300,000 purchase, 10% down (loan $270,000)
Estimated total buyer closing costs: 2.0% to 4.0% ($6,000 to $12,000)
- Lender fees, appraisal, credit: $1,500 to $4,000
- Title/settlement and lender policy: $1,500 to $3,000
- Prepaids and escrow reserves: $1,500 to $3,000
- Recording and miscellaneous: $200 to $1,000
- Inspections/survey: $400 to $1,000
Scenario B: $500,000 purchase, 20% down (loan $400,000)
Estimated total buyer closing costs: 1.5% to 3.5% ($7,500 to $17,500)
- Lender fees: $2,000 to $6,000
- Title/settlement and lender policy: $2,500 to $5,000
- Prepaids and escrow reserves: $2,000 to $4,000
- Inspections/survey: $500 to $1,200
- Recording/transfer exposure: variable by county rates
How to get your exact number
Follow this simple checklist to lock in a clear, tailored estimate for a Leonardtown purchase:
- Ask a local mortgage lender for a Loan Estimate.
- You should receive it within three business days of applying. Request itemized origination fees, discount points, appraisal, credit report, underwriting/processing, and required escrows.
- Have your agent request a preliminary title/closing estimate.
- Ask a St. Mary’s County title company for a quote listing title insurance premiums (owner and lender), settlement fee, recording fees, and estimated transfer/recordation taxes. Include HOA or condo fees if applicable.
- Budget for inspections and potential repairs.
- Include home, pest, and septic/well inspections if relevant, plus a survey if you need one.
- Confirm local tax rules and who pays what.
- Ask the title company or county office about transfer/recordation customs in St. Mary’s County.
- Review your Closing Disclosure carefully.
- You must receive it at least three business days before settlement. Compare it to your Loan Estimate and ask questions about changes.
Ways to manage cash to close
- Compare lender quotes: Fees and rates vary. A side-by-side comparison can lower your total costs.
- Negotiate seller credits: You can request a seller concession to cover eligible buyer closing costs, subject to loan program limits.
- Discuss points and pricing: Some lenders can reduce out-of-pocket costs with lender credits in exchange for a slightly higher rate.
- Plan inspection scope: Choose the inspections you need for the property type, and budget for likely repairs.
Quick guidance to get started
- Contact at least one local lender for a Loan Estimate.
- Ask your agent to connect you with 1 to 2 St. Mary’s County title companies for a closing-cost quote.
- Bring both estimates to your agent to review together before you make an offer.
When you have current quotes from a lender and a title company, you’ll know your true cash-to-close number, including prepaids and escrow reserves.
Ready to price out your Leonardtown purchase and move with confidence? Reach out to our local team for step-by-step guidance, tailored estimates, and vendor introductions that make closing day simple. Connect with Samara Dinnius to get started.
FAQs
What do “closing costs” include for Leonardtown buyers?
- Lender fees, title search and insurance, settlement services, transfer and recordation taxes, recording fees, prepaids and escrow reserves, and inspections or survey.
How much should I budget for closing costs in Maryland?
- A common estimate is 2% to 5% of the purchase price, with the exact number shaped by your loan type, lender fees, title premiums, and local taxes.
Who pays the owner’s title insurance in St. Mary’s County?
- Practices vary by county and contract; in many Maryland markets sellers pay the owner’s policy, but confirm current custom with a local title company.
Can the seller pay some of my closing costs?
- Yes, through a negotiated seller concession within loan program limits; your lender can confirm the maximum allowed.
When will I know my exact cash to close?
- Your lender must send a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
How are property taxes handled at closing in Leonardtown?
- Taxes are prorated to the closing date, and your lender usually sets up escrow reserves for future tax and insurance payments.
What inspections should I plan for in Southern Maryland?
- Typical inspections include general home and pest; many properties also need septic and well inspections, plus a survey if required by your lender or desired for boundary clarity.
