Average closing costs in Maine

Buying a home is a major step, and understanding closing costs can help you prepare for what it takes to complete your purchase. These expenses cover the essential services, paperwork, and protections required to finalize the transaction. In Maine, both buyers and sellers share these costs, and the exact amount will depend on the home’s price, your loan type, and local requirements. Learning what to expect ahead of time can make budgeting easier and help you move through closing day with confidence.

Key takeaways:

• Buyers in Maine typically pay around 3.38% of the home’s purchase price in closing costs.
• Typical buyer fees include loan origination charges, inspections, appraisals, title searches, and lender’s title insurance.
• Sellers usually cover real estate agent commissions (which are fully negotiable), prorated taxes, title fees, and deed preparation.
• Some expenses—like lender fees, title services, and certain third-party charges—can be compared or negotiated to help reduce the total amount paid at closing.

How much are closing costs in Maine?

With a median home sale price of $387,400, a typical homebuyer in Maine can expect to pay around $14,387 in closing costs. That equals roughly 3.38% of the home’s purchase price, though your actual amount may vary based on the property, loan terms, and individual financial details. These expenses cover a range of required services — including lender fees, appraisal costs, title insurance, escrow services, and state or local taxes — that both buyers and sellers contribute to when finalizing the transaction.

Maine’s closing costs can also differ by location due to variations in municipal taxes, recording fees, and the service providers available in each area. A homebuyer in Portland, for example, may encounter different title, inspection, or tax-related expenses than a buyer in Bangor or Lewiston, simply because local rates and service costs vary. Planning for these differences can help buyers budget more accurately for their up-front expenses.

What affects closing costs in Maine?

Several factors can influence how much you’ll pay in closing costs, including:

• Where you’re buying: Recording fees, insurance rates, and local taxes can vary from one Maine community to another.
• Home price: Percentage-based fees rise as the home’s purchase price increases.
• Loan type: FHA, VA, and conventional loans each come with their own fee structures, insurance requirements, and down payment rules.
• Title and escrow services: Costs depend on the provider and how complex the title search or closing process is.
• Taxes and recording fees: Local transfer taxes, prorated property taxes, and municipal recording charges differ by area.
• Prepaid costs: Up-front expenses like homeowners insurance, prepaid interest, and escrowed taxes can raise the total amount due at closing.

Are closing costs in Maine above average?

Nationally, closing costs typically range from about 0.4% to 3% of a home’s purchase price. Based on the Lodestar’s average national sales price of $438,236, typical national closing costs can fall between roughly $1,750 and $13,150. Maine’s average buyer closing cost of $14,387—about 3.38% of the state’s median home price—places it right in line with national expectations.

Overall, Maine’s closing costs are considered typical when compared to national averages. However, Maine’s closing costs may be slightly higher or lower than those in nearby states. For example, New Hampshire averages about 3.47%, while Vermont averages around 4.31%, largely due to differences in tax structures, insurance rates, and recording fees.  To better understand what goes into these expenses, explore what happens when closing on a house and learn how transfer taxes can affect your final costs.

What do Maine’s closing costs include?

Closing costs in Maine cover a range of fees and services needed to complete a home purchase. Some expenses relate to your mortgage and lender, while others involve inspections, title work, insurance, and administrative tasks. Knowing what each cost includes can help you budget accurately and avoid surprises on closing day.

• Lender-related fees: Application, origination, and credit check fees. Some loans may also include rate-lock fees.
• Appraisal fees: Required to confirm the property’s market value.
• Home and pest inspection fees: Covers the cost of checking for structural or pest-related issues.
• Title search and insurance: Protects the buyer and lender from ownership disputes or existing liens.
• Survey fees: Verifies property boundaries and easements, often needed for rural homes.
• Courier and recording fees: Covers the cost of transporting and filing official property documents.
• Notary fees: Ensures signatures on closing documents are legally verified.
• Prepaid items: Up-front costs for property taxes, homeowner’s insurance, and homeowners association dues.
• Private mortgage insurance (PMI): Required for loans with less than 20% down to protect the lender.
• Attorney fees: Paid if legal review or representation is needed during closing.
• Mortgage discount points: Optional up-front payments that lower the mortgage interest rate.

Each of these expenses plays a role in ensuring a smooth and secure home purchase. Reviewing your Loan Estimate and Closing Disclosure can help you clearly understand what you’re paying for and why.

Who pays closing costs in Maine?

Both buyers and sellers in Maine are responsible for certain closing costs. While many fees follow typical conventions, some items can be negotiated depending on the offer and local market conditions.

Closing costs for buyers

Buyers in Maine typically cover most lender- and property-related expenses. These fees are tied to the mortgage process and ensure the property is properly evaluated, insured, and transferred. Common buyer closing costs include:

• Loan application and origination fees
• Home appraisal and inspection
• Title search and lender’s title insurance
• Prepaid expenses (taxes, homeowners insurance, and interest)
• Recording and notary fees
• Attorney fees (if used)
• Mortgage discount points (if purchased)

These expenses help protect both the buyer and lender and ensure the transaction is completed accurately. Planning ahead for these costs can help first-time and repeat buyers stay on track financially. For guidance on preparing for up-front expenses, explore first-time home buyer expenses.

Closing costs for sellers

Sellers in Maine have their own set of closing costs, including some shared with buyers. The seller’s largest expense is often the real estate agent commission, though other prorated or administrative charges can add up. Common seller closing costs in Maine include:

• Real estate agent commissions
• Owner’s title insurance and other title-related fees
• Prorated property taxes and HOA fees
• Deed preparation and recording fees
• Attorney fees (if used)
• Outstanding mortgages and liens
• Seller concessions (if agreed to in negotiations)

These costs cover the services needed to legally transfer ownership and settle any remaining obligations tied to the property.

How to reduce your closing costs in Maine

Some closing costs in Maine—such as title insurance, recording fees, property taxes, and prepaid interest—are fixed and can’t be negotiated. Others, however, offer room for savings. Buyers who plan ahead and compare their options can often reduce what they pay at the closing table.

• Research home buyer assistance programs: Maine offers a variety of programs that can help reduce upfront costs. Organizations such as MaineHousing provide down payment and closing cost assistance options for eligible buyers, and some rural areas may qualify for USDA loans. Some of these assistance programs even intersect with energy-efficiency initiatives. For example, homebuyers may benefit from Efficiency Maine rebates and incentives when choosing a home that already includes energy-efficient features, which can help offset long-term utility costs even if they don’t directly cut closing costs
• Shop around for a lender: Lender fees vary, so comparing multiple offers can help you find lower origination or processing costs. Guidance on choosing the right lender is available in this article on how to choose a mortgage lender.
• Negotiate seller concessions: Depending on the market, sellers may agree to cover part of your costs as a credit at closing. You can explore what’s typically negotiable by reviewing this overview of seller concessions.
• Consider a no-closing-cost mortgage: Some lenders offer loans that reduce or eliminate upfront fees by rolling costs into the loan amount or adjusting the interest rate. More details are covered in this explanation of no-closing-cost mortgages.

Even though not every fee can be adjusted, understanding which closing costs are negotiable can help you identify opportunities to save and budget more effectively.

FAQ on closing costs in Maine

Does Maine require paying for a real estate attorney?

No, Maine does not require buyers or sellers to hire a real estate attorney. Most home purchases are handled through real estate agents, title companies, and closing professionals who manage the necessary documents. Some buyers and sellers still choose to involve an attorney for added clarity or support in more complex situations. More guidance is available in this overview of real estate attorneys.

When do Maine buyers find out their closing costs?

Buyers receive an estimate of their closing costs early in the mortgage process. A lender provides a Loan Estimate within three business days of applying, outlining anticipated fees and taxes. Then, at least three days before closing, buyers receive a Closing Disclosure with the final numbers. Reviewing both documents can help avoid last-minute surprises. More details are available about the Loan Estimate and the Closing Disclosure.

When and how will I pay my Maine closing costs?

Closing costs are typically paid on closing day when the property officially changes ownership. Most buyers pay by cashier’s check or wire transfer directly to the title or settlement company. Your final Closing Disclosure will outline the exact amount due and how to submit payment. Learn more about what to expect when it’s time to close on a house.

How can I save up for Maine closing costs?

Setting up a savings plan early can make it easier to cover closing costs, which average about 3.38% of a home’s purchase price in Maine. Some buyers save gradually from each paycheck, while others use tax refunds or bonuses to build their fund. Programs offered through MaineHousing or USDA rural loans may also help eligible buyers reduce upfront expenses. For more strategies, explore this guide on how to save for a house.

Are Maine’s closing costs deductible on my taxes?

Most closing costs in Maine cannot be deducted on your taxes. Fees such as title insurance, appraisal charges, and recording costs generally don’t qualify. However, certain items—like mortgage interest paid at closing and property taxes—may be deductible in the year you purchase your home. Homeowners who itemize may continue benefiting from deductions tied to interest and property taxes. More information is available in guides on whether closing costs are tax deductible and tax deductions for homeowners, as well as IRS Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Maine closing costs

Closing costs in Maine typically average about 3.38% of the home’s purchase price, covering lender fees, title services, insurance, taxes, and local recording charges. Buyers and sellers both contribute to these expenses, though the exact amounts can vary based on the property, loan details, and any negotiated terms. Knowing which costs are fixed and which may offer room for comparison or negotiation can help you plan your budget more confidently. If you’re getting ready to buy a home in Maine, now is an ideal time to get preapproved and begin your mortgage application process.