Closing day should feel exciting, not confusing. If you are buying in Saco or greater York County, you will see a list of fees and prepaids that can be hard to decode. You want to know what is required, what is optional, and where you can save. This guide breaks down Maine buyer closing costs line by line, with Saco-specific tips and clear ranges so you can plan with confidence. Let’s dive in.
Big picture: what buyers pay
Maine buyer closing costs, not including your down payment, often land between about 2% and 5% of the purchase price. The range depends on your loan type, lender fees, inspections, title insurance choices, and whether you negotiate seller credits. You will be closer to the low end if you receive concessions or use lender credits, and closer to the high end if you add more inspections or pay for an owner’s title insurance policy yourself. Exact numbers come from your Loan Estimate, a title quote, and the property tax proration for your closing date.
Why Saco numbers vary
Local custom matters in Southern Maine. In York County, closings are commonly handled by title companies or real estate attorneys, and who pays for owner’s title insurance varies by deal. Saco’s coastal setting can add inspections for septic, well, radon, or flood risk. Recording fees follow the York County Registry of Deeds schedule in Alfred, and your Saco property tax timing affects proration and escrow deposits at closing.
Loan-related costs
These are fees paid to your lender or to third-party vendors ordered by your lender.
Origination and points
- Loan origination or processing fee: typically 0% to 1% of the loan amount, or a flat fee. This can be negotiated and sometimes offset with a lender credit.
- Discount points: optional prepaid interest to lower your rate. One point equals 1% of the loan amount. Points increase cash to close but can reduce monthly payments.
Appraisal, credit, and underwriting
- Appraisal: often required. Budget about $400 to $900 in Maine. Complex, large, multi-unit, rural, or waterfront properties may be higher.
- Credit report: about $25 to $75.
- Underwriting, processing, or admin fees: often $300 to $1,200 combined.
- Flood certification, tax service, and automated valuation fees: usually $20 to $200 total.
Mortgage insurance and program fees
- Conventional loans with less than 20% down usually require private mortgage insurance (PMI). PMI can be monthly, upfront, or a mix, and it changes your cash to close.
- FHA and VA loans use different insurance or funding-fee structures. These may be paid upfront, financed into the loan, or reflected in monthly costs.
Prepaid interest
Prepaid interest covers the interest due from your closing date to the start of your first monthly payment. This can run a few hundred dollars depending on your closing day and rate.
Title and settlement costs in York County
These cover research on the property’s ownership history, insurance to protect the lender and owner, and the work of conducting your closing.
Title search and insurance
- Title search and exam: commonly $200 to $800.
- Lender’s title insurance: required by most lenders. The premium is tied to your loan amount and state rate schedules, often a few tenths of a percent up to about 1% of the loan.
- Owner’s title insurance: protects your ownership. In some New England deals, sellers buy this policy. In other cases, buyers do. If the buyer pays, plan on up to about 0.5% to 1% of the purchase price, subject to rate schedules. This is negotiable in the contract.
Settlement and recording
- Settlement or closing fee to the title company or attorney: about $300 to $1,000.
- Recording fees at the York County Registry of Deeds: typically tens to a few hundred dollars, depending on the number of pages and documents recorded.
- Small extras like courier, overnight, or document prep: about $50 to $200.
Prepaids and escrows
These are not fees but upfront payments your lender often requires at closing.
Homeowners insurance
Many lenders require the first year of homeowners insurance to be paid at closing. In Maine, budgets often range from $700 to $2,000 for a typical home, depending on coverage, wind or flood exposure, and property features. You may also deposit a few months of insurance into escrow.
Property tax proration and escrows in Saco
Property taxes are prorated based on the closing date. You may reimburse the seller for prepaid taxes, or the seller may credit you if taxes are due soon after closing. Lenders frequently collect 1 to 3 months of taxes as an escrow deposit. Your Saco mill rate and billing cycle affect this number, so your title company will reference the City of Saco’s latest schedule when preparing figures.
HOA and other prepaids
If your property has a homeowners association, you may prepay dues for a few months or pay a transfer fee. The amount varies by community.
Inspections and surveys common in coastal Saco
Inspections help you understand the home you are buying and protect you from unknowns.
- General home inspection: about $300 to $700.
- Specialized inspections, as needed: septic, well, radon, mold, chimney, lead-based paint, or structural. Each can be $100 to $1,000 depending on the test.
- Boundary survey: sometimes requested or required. Plan roughly $300 to $1,500.
- Flood considerations: your lender will order a flood certification. In some shore or river areas, separate flood insurance may be needed, which affects your monthly and escrow totals.
Government transfer and recording
Maine has state and local transfer or conveyance tax practices that can vary by contract and local custom. Allocation between buyer and seller is negotiable. Your closing agent will confirm current rules and how they apply to your deal. Recording fees are paid to the York County Registry of Deeds in Alfred based on the document set.
Sample Saco buyer budgets
Use these examples as a planning tool. Your exact cash to close will come from your Loan Estimate and title quote, plus tax prorations for your specific property and closing date.
Rule of thumb
- Total buyer closing costs often run about 2% to 5% of the purchase price, excluding your down payment.
- Lower totals usually reflect seller credits, lender credits, or the seller paying for the owner’s title policy.
- Higher totals often include the buyer paying for the owner’s title policy, more inspections, and larger lender fees.
Sample totals by price point
- Purchase price $300,000
- Low estimate at 2.5%: about $7,500
- Mid estimate at 3.5%: about $10,500
- High estimate at 4.5%: about $13,500
- Purchase price $450,000 (common mid-market in Saco)
- Low estimate at 2.5%: about $11,250
- Mid estimate at 3%: about $13,500
- High estimate at 4%: about $18,000
- Purchase price $700,000 (larger or shore-adjacent)
- Low estimate at 2.5%: about $17,500
- Mid estimate at 3.5%: about $24,500
- High estimate at 4.5%: about $31,500
Detailed example: $450,000 purchase
Assumptions: 20% down, loan amount $360,000, buyer pays common items, and the seller does not pay for the owner’s policy.
- Appraisal: $500 to $800
- Credit report: $30 to $60
- Loan origination and processing: $1,500 to $4,000, or about 0% to 1% of the loan
- Lender’s title insurance: $1,800 to $3,600
- Owner’s title insurance if buyer pays: $2,250 to $4,500, negotiable in our area
- Settlement or closing fee: $400 to $1,000
- Recording fees: $50 to $200
- General home inspection: $300 to $700
- Radon, septic, or well tests if ordered: $150 to $800 total
- Homeowners insurance, first year: $700 to $1,500
- Property tax proration and escrow deposits: example $1,000 to $2,000 depending on timing
Example subtotal without owner’s title policy: about $8,500 to $11,500, which is about 1.9% to 2.6% of a $450,000 price. If the buyer also purchases an owner’s policy, add about $2,250 to $4,500 for a total around $10,750 to $16,000, or about 2.4% to 3.6%.
How to reduce your cash to close
- Ask for seller concessions. Buyers in Maine often negotiate seller credits toward closing costs. Limits depend on the loan program, so confirm with your lender.
- Shop lenders. Compare interest rates, discount points, lender fees, and lender credits by requesting Loan Estimates from multiple lenders.
- Negotiate the owner’s title policy. In some Southern Maine deals, the seller pays. If not, ask to split it or offset with a credit.
- Use lender credits. You can accept a slightly higher interest rate in exchange for a lender credit that covers some fees.
- Be selective with optional tests. Inspections are your protection. Only skip or limit them if you fully understand the risk.
- Negotiate repairs as credits. If an inspection finds issues, a repair credit can reduce your cash to close without delaying work before closing.
Steps to get your exact Saco number
Apply with a lender and request a Loan Estimate. You will receive it within three business days after a complete application. It lists expected loan-related costs and prepaids.
Ask your title company or closing attorney for a written quote. They will price the title search, title insurance premiums, settlement fee, and York County recording charges.
Confirm Saco property taxes with the assessor or tax office. Mill rate, billing schedule, and whether the seller has prepaid will shape proration and escrow deposits.
Clarify who pays the owner’s title policy. Check the listing notes and negotiate in your offer.
Review your Closing Disclosure. You will receive it at least three business days before closing. Compare it to your Loan Estimate and ask questions about any changes.
Work with a local, design-build advisor
Buying in Saco is about lifestyle and numbers. You deserve both clarity and craftsmanship. As a boutique brokerage and in-house builder based in Saco, we blend market expertise with construction know-how to help you budget precisely, spot property risks early, and negotiate credits that protect your cash to close. If you want a calm, detail-forward path to the keys, reach out to Bedard Realty to request a consultation.
FAQs
What are typical buyer closing costs in Saco, Maine?
- Buyers commonly pay about 2% to 5% of the purchase price in closing costs, not including the down payment, with the exact number driven by lender fees, title insurance choices, inspections, and seller credits.
How do FHA, VA, and conventional loans change closing costs?
- Conventional loans may include PMI with less than 20% down, FHA and VA have different insurance or funding-fee structures, and each program can allow different levels of seller credits that affect cash to close.
Who pays for the owner’s title insurance policy in York County?
- It is negotiable; in some New England transactions the seller pays, while in others the buyer does, so confirm local custom with your agent and closing company and negotiate it in the contract.
How are Saco property taxes handled at closing?
- Taxes are prorated based on the closing date, and your lender may also collect 1 to 3 months of taxes into escrow, which means your cash to close depends on timing and the city’s billing cycle.
Can I roll closing costs into my mortgage in Maine?
- Some costs can be offset with a lender credit in exchange for a slightly higher rate, and certain fees or prepaid items may be financed depending on your program and appraisal, so review options with your lender.
What inspections should I budget for in coastal Saco?
- Plan for a general home inspection and consider septic, well, radon, chimney, or mold tests, plus a flood certification and possible survey if needed, since coastal and older systems may warrant extra diligence.
When will I know my final cash to close?
- Your lender must deliver a Closing Disclosure at least three business days before closing, and that document provides your final cash-to-close number for you to review and confirm.
