Buying in Cumberland County and wondering how much cash you need at the closing table? You are not alone. Closing costs can feel like a maze, especially if you are a first-time buyer or moving up to a larger home. This guide breaks down what you will pay, who typically pays what in Southern Maine, and how to build a realistic estimate for your cash to close. You will also find local tips and a simple checklist to keep you organized. Let’s dive in.
What closing costs include
Closing costs are the out-of-pocket fees you pay at settlement in addition to your down payment. In Cumberland County, totals vary by home type, financing, town customs, and timing. Use the ranges below as a starting point, then confirm with your lender and title company.
Loan costs
If you are financing your purchase, expect several lender fees:
- Origination or lender fee. Either a flat fee or a percentage of the loan, commonly 0.25% to 1.0%. Covers underwriting and processing.
- Application and processing. Sometimes rolled into origination or waived.
- Credit report. Typically a small fee, about $25 to $60.
- Appraisal. Most loans require one. In Cumberland County, a common range is $400 to $800, depending on size and complexity.
- Flood certification and tax service. Small verification fees, often $15 to $50.
- Rate lock. Charged only if your lender uses one for your specific lock period.
- Points. Optional. One point equals 1% of the loan amount to buy down the rate.
Inspections and reports
These help you evaluate the home’s condition and are usually paid by the buyer:
- General home inspection. Often $300 to $700 based on size and scope.
- Additional inspections. Radon roughly $100 to $250. Septic inspection often $300 to $600 on rural properties. You may also consider tests for mold, lead paint, or pests as needed.
- Survey or boundary work. If required, costs can vary widely, commonly $300 to $1,500 or more.
- Condo documents or HOA estoppel. If buying a condo, expect fees for document packets or estoppel letters.
Title and settlement
Title services protect you and your lender by verifying ownership and handling the legal transfer:
- Title search and exam. A review of the property’s title history.
- Lender’s title insurance. Usually required by the lender. Cost follows state schedules and company rates.
- Owner’s title insurance. Optional but recommended to protect your ownership. Who pays can vary by county and by negotiation. In parts of New England, sellers often pay for the owner’s policy, but customs differ across Cumberland County towns. Confirm with your title company or attorney.
- Settlement or attorney fee. In parts of Maine, an attorney may handle closing. Fees vary by firm.
- Recording fees. Paid to the Cumberland County Registry of Deeds to record the deed and mortgage. Amounts depend on the document count and county schedule.
- Transfer or excise taxes. Confirm whether any apply to your transaction.
Prepaids and escrow items
These are upfront deposits for items that continue after closing:
- Homeowner’s insurance. Lenders typically require payment of the first year or several months at closing.
- Property tax escrow. Lenders often collect a few months of taxes to seed your escrow account. Two months is common, but the exact amount depends on the municipal tax schedule and lender requirements.
- Private mortgage insurance. If your down payment is under 20%, you may see an initial PMI charge or monthly escrow.
- HOA dues. Expect prorated dues and possible transfer fees.
Program-specific fees
Government-backed loans may include additional fees:
- FHA: Upfront mortgage insurance premium has historically been about 1.75% of the loan. It is often financed, but can be paid at closing. Confirm the current rate with your lender.
- VA: A funding fee applies that varies by down payment and veteran status. It is often financed.
- USDA: A guarantee fee may apply. Check current rules.
Other local charges
- Municipal surcharges or clerk fees.
- Courier or wire fees.
- Prorations for taxes, utilities, and HOA dues between buyer and seller.
Who pays what in Cumberland County
Customs in Southern Maine are established but still flexible. Your purchase and sale agreement will spell out the final split.
- Buyers typically pay lender-required fees, inspections, lender’s title policy, mortgage recording fees, homeowner’s insurance, initial tax and insurance escrows, and their own attorney if used.
- Sellers typically pay the real estate commission, mortgage payoffs, prorated property taxes up to closing, and in some cases the owner’s title insurance policy and local transfer taxes.
- Customs vary by town. Practices in Portland may differ from smaller towns. Ask your title company or attorney what is typical for your specific property.
- Many costs are negotiable. You can request seller credits toward your closing costs. Loan programs set limits on seller concessions. For example, FHA has historically allowed up to 6 percent, but you should confirm current program rules with your lender.
How to estimate cash to close
Your cash to close includes your down payment plus closing costs, minus any credits from the seller or lender. Use this formula to start:
Cash to close = down payment + loan fees + inspections + title and recording + prepaids and escrow deposits − credits
For a quick budget, plan for buyer closing costs of about 2% to 5% of the purchase price, not including the down payment. You will be at the lower end if you have fewer third-party services and some credits, and at the higher end if you add inspections, program fees, or fewer credits.
Example A: First-time buyer
- Purchase price: $350,000
- Down payment: 5% = $17,500
- Estimated buyer closing costs at about 3%: $10,500
- Appraisal: $550
- Home inspection: $450
- Title, lender policy, settlement: $2,800
- Recording fees: $200
- Prepaid insurance and 2 months of tax escrow: $2,500
- Miscellaneous: $500
- Estimated cash to close with no credits: $28,000
Example B: Move-up buyer
- Purchase price: $650,000
- Down payment: 20% = $130,000
- Estimated buyer closing costs at about 2.5%: $16,250
- Appraisal: $650
- Inspection: $600
- Title, lender policy, settlement: $5,000
- Recording fees: $300
- Prepaids and escrow: $6,000
- Miscellaneous: $1,700
- Estimated cash to close with no credits: $146,250
These figures are for illustration only. Local title fees, municipal recording charges, and escrow requirements change totals. Your lender will issue a Loan Estimate within 3 business days of application and a final Closing Disclosure at least 3 business days before closing. Those documents provide your official numbers.
Timing and key documents
Stay on top of these milestones to avoid surprises:
- Loan Estimate. You will receive this within 3 business days after you apply. It outlines your projected interest rate, monthly payment, and closing costs.
- Draft Closing Disclosure. Ask your lender and title company for a draft several days before the final version to review line items and wire instructions.
- Final Closing Disclosure. You must receive the final version at least 3 business days before closing.
- Title commitment. Review for exceptions and fees tied to your title policy.
Local tips for Cumberland County buyers
- Recording fees. The Cumberland County Registry of Deeds sets recording costs and formatting rules. Amounts depend on the documents recorded. Your title company will confirm the exact total for your transaction.
- Property taxes and proration. Each municipality sets rates and due dates. Ask the local assessor for the current tax bill and how proration is handled at closing.
- Older Maine homes. You may want additional inspections such as septic, well water, oil tank, chimney, lead paint, or pest based on the property’s age and systems.
- Title customs. In some New England markets, sellers often pay for the owner’s title insurance policy. In Cumberland County, it can differ by town and by negotiation. Ask your attorney or title agent what is typical for your deal.
Quick buyer checklist
Use this to track what to request and review:
- Loan Estimate from your lender within 3 business days of application.
- Preliminary title report or title commitment from the title company or attorney.
- Current property tax bill and the municipal tax schedule from the local assessor.
- HOA or condo documents and any estoppel letter if applicable.
- All inspection reports you choose to order, including any follow-up specialty inspections.
- Purchase and sale agreement, including any seller credits or concessions.
- Draft Closing Disclosure several days in advance, then the final Closing Disclosure at least 3 business days before closing.
Ways to lower what you bring to closing
You can often trim your cash to close with a few smart moves:
- Negotiate seller credits. Ask for a closing-cost credit within your loan program’s concession limits. Your lender will confirm current caps.
- Compare lenders. Different lenders set different origination fees, points, and rate-lock costs. A small difference can change your cash at closing.
- Finance eligible program fees. FHA upfront mortgage insurance, VA funding fees, and some other charges can often be financed into the loan, which lowers your cash to close but increases your monthly payment.
- Time your closing. Closing shortly after tax and insurance due dates may reduce initial escrow deposits. Ask your lender how timing affects prepaids.
- Right-size inspections. Do the inspections you need for peace of mind. If you are buying a condo with recent reserve studies and maintenance records, discuss with your inspector which add-ons are most useful.
How we can help
You deserve a clear, calm path to the closing table. As a boutique Southern Maine brokerage led by a Maine native with 20-plus years of experience, we guide you through each line item, introduce trusted local lenders and title teams, and help you negotiate credits that fit your goals. If you are comparing neighborhoods from Portland to Cape Elizabeth, we will connect the dots between lifestyle, budget, and the numbers that matter on closing day.
Ready to talk strategy for your purchase in Cumberland County? Reach out to Mary Libby to start a plan tailored to your timeline and budget.
FAQs
How much should a Cumberland County buyer budget for closing costs?
- A common rule of thumb is 2% to 5% of the purchase price for buyer closing costs, not including your down payment. Your Loan Estimate will provide a more exact number.
Who usually pays the owner’s title insurance policy in Southern Maine?
- Practices vary by town and negotiation. In some New England markets sellers often pay, but in Cumberland County it differs by property and contract. Confirm with your title company or attorney.
What inspections are common for older Maine homes?
- In addition to a general home inspection, buyers often consider radon, septic, well water, lead paint, chimney, and pest inspections based on the home’s age and systems.
Can I finance some of my closing costs on an FHA, VA, or USDA loan?
- Many program fees, such as FHA’s upfront mortgage insurance or the VA funding fee, can often be financed into the loan. Your lender will explain current rules and tradeoffs.
When will I know my final cash to close amount?
- Your lender must deliver a final Closing Disclosure at least 3 business days before closing. Review it carefully and ask for a draft version earlier to check details.
What recording fees should I expect in Cumberland County?
- Recording costs depend on document count and county schedules. Your title company will confirm exact amounts with the Cumberland County Registry of Deeds for your file.
Can I ask the seller to cover some of my closing costs?
- Yes. Seller credits are common and are capped by your loan program. Your agent and lender can help you structure a compliant request during negotiations.
