How to buy a home in Maine

Maine is famous for its coastal towns, rugged shoreline, forested mountains, historic working waterfronts, and close-knit communities. While home prices might be higher in popular coastal areas, buying a house in Maine can still be a great choice if you’re looking for natural beauty, space, and a laid-back lifestyle.

Whether you already call Maine home or you’re moving for work, family, or a new chapter, buying a home in the state comes with its own set of considerations. We’ll walk through what to know so you can confidently begin your home search in the Pine Tree State.

Maine’s housing market: At a glance

Understanding the housing market in Maine

Before you begin looking at homes for sale, it’s a good idea to understand Maine’s housing market and how home prices can vary throughout the state.

The median home price is $426,880

In Maine, home prices have increased 9.2% compared to October 2024, according to Redfin. However, the median home sale price is slightly lower than the national average, $426,880 compared to $439,917. You’ll find some areas that are both more and less affordable than Maine’s state average.

• In Bangor, the median home price is $275,000.

• In Portland, the median home price is $640,000.

The neighborhood, home size, unique features, and nearby amenities also influence housing prices in different cities. You can use the Rocket Mortgage home affordability calculator to help compare prices to see which cities may fit your budget best. 

Market trends and inventory 

Maine has seen an 8.3% increase in homes for sale compared to last year. Each town in Maine differs slightly, so working with an experienced local real estate agent can help you navigate the market. 

Spring and summer are peak shopping seasons

During Maine’s spring and summer months, more homes tend to hit the market, and buyer demand is higher. Shopping for a home in the early fall through winter may mean fewer competing buyers and the potential for better prices, though inventory could be more limited. Ultimately, the best time to buy a home is when you’re financially and emotionally ready. 

How to buy a house in Maine

Now that you know about Maine’s housing market, we’ll guide you through the steps of buying a house in the state.

Step 1: Check your credit and set a budget

Before you start house hunting, examine your finances, such as your credit score, DTI, and potential budget. You can use the Rocket Mortgage mortgage calculator to see what you could afford each month and how much you should save for your down payment and closing costs.

• Check your credit score

• Find out your debt-to-income ratio

• Save for a down payment

• Plan for closing costs and additional fees

• Finalize your budget

Step 2: Decide on the type of financing you want

There are several loan types to consider, depending on your credit score, down payment amount, and location.

• Conforming conventional loans. These loans typically require a minimum 3% down payment, and are offered by private lenders. You’ll have to pay private mortgage insurance (PMI) if your down payment is lower than 20%.

• Jumbo loans. These are conventional loans that exceed conforming loan limits. They usually require a higher credit score, down payment, and additional cash reserves. 

• FHA loans. These are government-backed loans through the Federal Housing Administration. These loans offer lower down payments depending on your credit score. 

• VA loans. These loans are for qualifying service members and surviving spouses and require no down payment. They are backed by the Department of Veterans Affairs.

• USDA loans. These loans are for home buyers in qualifying rural areas, with no down payment requirement. They are backed by the U.S. Department of Agriculture.

Step 3: Apply for preapproval

A mortgage preapproval gives you a clear idea of how much you can borrow when buying a home in Maine. Having a preapproval early in your search can help you stand out, especially in competitive areas.

During the preapproval process, lenders review your credit score, income, and assets to determine which loans you may qualify for, your potential interest rate in Maine, and the loan terms. The process typically takes just a few days.

Step 4: Find a real estate agent in Maine

Choosing a local real estate agent in Maine makes the homebuying process smoother, as they have a deep understanding of the area. You can find a great real estate agent through sites like Redfin.com or through your family and friends. 

In Maine, dual agency is allowed if both parties have written consent. Dual agency allows one agent to represent both buyers and sellers in the transaction. Be sure to ask your agent before signing a buyer's agent agreement.  

Step 5: Start house hunting

After finding a few cities that fit your home buying goals, it’s time to look at homes for sale. Work with your real estate agent to look at homes for sale on the MLS and sites like Redfin to narrow down the homes you want to see in person. 

Key factors to consider:

• Proximity of the neighborhood to schools, jobs, and amenities

• Public transit, major roads, and highways

• HOA fees and potential costs

• Costs of property taxes in the city

Step 6: Make an offer and negotiate

Your real estate agent will guide you through making an offer on a house in Maine. You’ll work together to decide how much to offer, which contingencies to include, and how much to put down as an earnest money deposit. This deposit shows the seller you’re committed to purchasing the home and is typically 1% – 3% of the purchase price, later applied toward your down payment.

Step 7: Begin the closing process

Now that your offer is accepted, you’ll:

• Submit your earnest money

• Officially apply for a mortgage

• Read through the closing documents

• Schedule the appraisal and inspection

• Prepare for closing day

• Have a final walkthrough

In Maine, closing costs are typically 3% – 6% of the home’s purchase price. Closing costs can cover loan origination fees, home inspection costs, mortgage points, insurance, property taxes, and escrow fees.  

FAQ about home buying in Maine

Here are some of the top frequently asked questions about buying a home in Maine.

How much are property taxes in Maine?

The effective property tax for Maine is 1.10%, but local property taxes might differ.

Do I need a real estate agent to buy a home in Maine?

A great real estate agent can help you find your dream home and navigate the home buying process, but you technically don’t need one to buy a home in Maine.  

How long does it take to close on a house in Maine?

In Maine, it typically takes 30 to 60 days to close on a home. Loan approval and home could affect this timeline. 

Are there any specific factors that could affect the home buying process in Maine?

If you’re buying a home located in a high-risk flood zone, such as near lakes or coastal areas, your lender could require you to carry flood insurance. 

The bottom line: There’s a home in Maine waiting for you

Maine’s coastal charm and relatively affordable housing options compared to other parts of the country make it an attractive place to live. By working with a trusted real estate agent and preparing your finances, you can feel confident buying a home in Maine. 

If you’re ready to buy a home in the Pine Tree State, start the mortgage approval process with Rocket Mortgage^® for a personalized plan that fits your financial goals.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.