Closing Costs in Portland, Explained

Buying or selling a home in Portland comes with a long list of line items, and closing costs can be the most confusing part. You want to budget accurately and avoid surprises on closing day. In a few minutes, you will understand what these costs include, who typically pays what in Maine, and how to get exact numbers for your situation. Let’s dive in.

What closing costs include

Buyer costs at a glance

• Lender fees: application and credit report, origination or processing, underwriting, and optional discount points.
• Appraisal: a professional valuation of the property. A typical national range is about $400–$800 depending on the home.
• Inspections and survey: home inspection, pest or specialty inspections, and surveys if needed.
• Title and settlement: title search, closing or settlement fee, and the mortgagee’s title insurance policy. An owner’s title policy is common and the payment responsibility varies by local custom.
• Recording: registry fees to record the mortgage and other documents.
• Prepaids and escrow deposits: homeowners insurance, property tax proration, prepaid interest, and the starter balance for your escrow account if the lender requires one.

Seller costs at a glance

• Real estate commission: often the largest item. National industry surveys commonly place total commission around 5%–6% of the sale price, split between listing and buyer brokers.
• Attorney or closing agent fees, mortgage payoff and related fees, prorated property taxes, and any agreed seller concessions that help the buyer with costs.
• Owner’s title insurance: in many New England markets, sellers often pay for the owner’s policy, though this is negotiable and varies by area and contract terms.

Shared and local items

• Settlement and title company fees, courier or wire fees, and recording fees at the Cumberland County Registry of Deeds are part of most closings. Who pays can depend on local practice and what is negotiated in your purchase agreement.
• Maine practice commonly involves a closing attorney or title company coordinating your settlement, preparing documents, disbursing funds, and handling recording.

How much to budget in Portland

• Buyers: plan on roughly 2%–5% of the purchase price for closing costs. This does not include your down payment.
• Sellers: plan on roughly 6%–10% of the sale price. Most of this is the commission, with the remainder covering attorney or closing fees, prorations, and any agreed concessions.

These are planning ranges. Your exact numbers depend on your loan program, interest rate, whether you pay points, insurance premiums, tax timing, and local fees.

Example on a $400,000 purchase

• Buyer estimate at 2%–5%: about $8,000 to $20,000

  • Appraisal: about $450–$700
  • Credit report and application: about $30–$500
  • Lender origination or processing: market based, sometimes 0.5%–1% of the loan or a flat fee
  • Title search and closing fee: about $300–$900
  • Mortgagee title policy: varies by loan size and state
  • Prepaids and escrows: often $1,200–$4,500 depending on taxes, insurance, and closing date
  • Recording fees: about $50–$200

• Seller estimate at 6%–8%: about $24,000 to $28,000

  • Commission at 5%–6%: about $20,000–$24,000
  • Other seller charges: about $2,000–$4,000 for attorney or closing fees, payoff-related items, and prorations

Prepaids, escrow, and prorations explained

• Prepaid interest: interest accrues from closing until your first mortgage payment. The amount depends on the number of days. For example, roughly one month of interest on a $300,000 loan at 4% is about $1,000.
• Homeowners insurance: lenders often require your first-year premium paid at or before closing, or proof that it is bound and paid.
• Property taxes: taxes are prorated based on your closing date. If the seller has prepaid taxes past your closing date, you reimburse the seller for your share. If your lender requires an escrow account, expect an initial deposit, often around two months of taxes and insurance, though requirements vary.

Who pays for title insurance and recording in Maine

• Owner’s title insurance: payment responsibility varies by region and negotiation. In many New England markets, sellers often cover the owner’s policy, but you should confirm current practice in Portland when you write your contract.
• Recording and deed fees: the Registry of Deeds charges for recording the deed and mortgage. Exact amounts change, so confirm the current schedule for Cumberland County through your closing attorney or title company.
• Transfer taxes or documentary fees: practices vary in Maine. Your closing attorney can confirm whether a specific transfer or documentary fee applies to your transaction and who pays it.

How to get your exact numbers

Buyers: your next steps

1. Apply for preapproval and request a Loan Estimate from each lender you are considering. Compare the line items side by side.
2. Ask your lender about escrow requirements, prepaid interest, and whether mortgage insurance or HOA fees apply to your situation.
3. Contact a Portland-area title company or closing attorney and request a draft settlement estimate for your target price and loan amount. Share your purchase agreement once it is signed.
4. Get homeowners insurance quotes that meet lender requirements and review the recent property tax history for the address you plan to purchase.

Sellers: your next steps

1. Ask your listing agent for a seller net sheet that estimates your proceeds after commission and typical seller-side costs.
2. Ask your closing attorney or title company for an itemized seller estimate and a payoff figure for any mortgages, including per-diem interest.
3. Clarify who will pay for the owner’s title policy in your negotiation and request a current premium quote.

What to ask for by name

• Lender Loan Estimate: origination fees, points, appraisal, underwriting, prepaid interest, and initial escrow deposit.
• Title or closing estimate: title search fee, settlement fee, owner’s and mortgagee title insurance premiums, deed and recording fees, courier or wire fees.
• Seller payoff statement: current payoff for each mortgage and daily interest through closing.
• Commission calculation: listing rate, cooperating broker split, and any brokerage administration fee.

Timeline and documents

• After you complete a mortgage application, you should receive a Loan Estimate within three business days. This is your early snapshot of closing costs.
• You should receive the final Closing Disclosure at least three business days before closing. Review it line by line with your lender or closing attorney.
• Bring a government-issued photo ID, proof of homeowners insurance, and certified funds or a wire for your cash to close. Your closing team will give you the exact amount and wiring instructions.

Ready to run the numbers

If you are weighing a move to Greater Portland, clear closing-cost planning will help you act with confidence. Whether you are financing a primary home or considering a second home on the coast, a written estimate from your lender and closing attorney will give you precise figures for your budget.

If you would like a personalized walkthrough for your price point and neighborhood shortlist, connect with Emilie Cole for local guidance and a seamless plan from contract to closing.

FAQs

What are typical buyer closing costs in Portland, Maine

• Expect about 2%–5% of the purchase price, excluding your down payment, with the exact amount based on your loan type, lender pricing, and local fees.

How much do sellers usually pay in closing costs in Portland

• Sellers commonly budget about 6%–10% of the sale price, with most of that being the commission plus attorney or closing fees and prorations.

Who pays for the owner’s title insurance policy in Maine

• Payment is often negotiable; in many New England markets the seller pays, but you should confirm local custom in Portland with your closing attorney when drafting your contract.

Are there transfer taxes or documentary fees I should plan for in Maine

• Practices vary by location; verify any applicable transfer or documentary fee and who pays it with your Portland closing attorney and the Cumberland County Registry of Deeds.

When will I know my exact cash to close

• You should receive a Loan Estimate within three business days after applying for a mortgage and a final Closing Disclosure at least three business days before closing.

Can I ask the seller to contribute toward my closing costs

• Yes, seller concessions are sometimes negotiated, though loan programs often limit the maximum contribution; your lender can confirm limits for your loan type.

What do I need to bring to the closing appointment

• Bring a government-issued photo ID, proof of a paid or bound homeowners insurance policy, and certified funds or a wire for the cash to close as shown on your final statement.