The Ultimate Guide to Buying a Home in Baltimore (2025 Edition)
- Molly Reed
- Oct 9
- 12 min read
Baltimore isn't just a place—it's a lifestyle. From cobblestone streets and historic rowhouses to vibrant waterfront communities and lush suburban neighborhoods, every corner of Charm City has its own distinct personality.
If you're thinking about buying a home in Baltimore in 2025, you've come to the right place. This comprehensive guide walks you through every step of the home-buying process—from defining your goals to closing day—so you can navigate the journey with clarity, confidence, and yes, even excitement. (Because home buying should be enjoyable, too!)
Quick Overview: The Home Buying Process
Here's a roadmap of the key steps we'll explore in detail below:
Choose the right Realtor®
Get pre-approved for financing
Determine your wants, needs, and budget
Complete a Buyer Consultation with your Realtor
Tour homes
Submit an offer
Navigating Contract to Close (inspections, appraisal, financing)
Understand upfront costs
Feeling overwhelmed? Don't be! I'll break down each step so you know exactly what to expect along the way.
Step 1: Choose the Right Realtor®
Buying a home is more than a financial transaction—it's deeply personal. That's why finding the right agent matters just as much as finding the right home.
As a Baltimore Realtor® powered by Compass, I've built my business on three core pillars:
✨ Clear expectations
✨ Open communication
✨ Thorough follow-up
What Your Realtor Should Be
Your agent should serve multiple essential roles:
Market Expert – Finding hidden gems and off-market listings you won't see on Zillow
Transaction Coordinator – Keeping every document organized and every deadline met
Neighborhood Consultant – Helping you understand the block-by-block differences that matter
Negotiation Expert – Advocating fiercely for your best interests
Trusted Advisor for Life – Supporting you long after the keys are handed over
As your Realtor, I act as your fiduciary, meaning my number one priority is to represent you and your best interests. A real estate transaction involves hundreds of nuanced steps, so having a full-time professional to navigate the process (and the inevitable curveballs) is paramount to a successful home-buying journey.
Interested in learning more about the advantages of working with Compass? Check out my guide on Why Choose Compass to explore exclusive tools like Compass Collections, Private Exclusives, and Compass Concierge.
Step 2: Get Pre-Approved and Understand Your Budget
Before you start touring homes, it's essential to connect with a trusted local lender. They'll help determine what you can comfortably afford based on factors like income, debt, credit score, and savings.
While you're able to work with any lender you choose, I strongly recommend selecting someone who knows the Baltimore market inside and out—including grant programs, local nuances (like ground rent!), and the neighborhoods you're considering.
Why Choose a Local Lender?
Another key reason to work locally: availability. House hunting often happens after 5 PM or on Sunday mornings. Big national banks won't be answering your calls during those critical moments, which can put you in a pinch when you need quick answers or documentation.
Pro Tips for the Pre-Approval Process
Rates fluctuate daily – Lock in your rate when you're ready to move forward
Avoid major purchases – Don't buy a car or finance large items during pre-approval or the home-buying process, as it can affect your debt-to-income ratio
Pre-approvals expire – Most expire after 60–90 days, so stay in touch with your lender if your search takes longer
Know the difference between "can" and "want" – What you can get pre-approved for versus what you want to spend monthly often vary greatly. Determine your comfortable price range first to ensure your monthly payment aligns with your financial goals
Understanding Loan Options
Here's a quick breakdown of common loan types available to Baltimore home buyers:
The 20% Down Payment Myth
That's right—you don't need to put 20% down! While there are benefits to a larger down payment (like a lower monthly payment and avoiding Private Mortgage Insurance), it's not uncommon to put down as little as 3%.
Baltimore-Specific Resources
If you're interested in learning more about Baltimore City-specific grants and incentives, visit Live Baltimore's Down Payment & Closing Costs resource page.
Step 3: Determine your wants, needs, and budget
Before you dive into home tours, it's crucial to define your priorities across three key areas: wants vs. needs, budget, and lifestyle.
Wants vs. Needs
In the age of Pinterest, Instagram, and Selling Sunset, it's easy to develop a skewed perception of what homes should (or could) look like. Here's the reality: it's okay for your first home not to be your forever dream home.
First homes are a fantastic way to get your foot in the real estate door and build equity for future properties. Getting clear on the distinction between wants and needs is essential.
Example:
Do you want an infrared sauna in a huge primary suite? Sure!
Do you actually just need two small full bathrooms for you and the kids? Probably.
Think about your daily lifestyle and what matters most. What will genuinely improve your quality of life versus what just looks good on social media?
Budget Reality Check
Your budget will often dictate which features you can have in your home, which is why clarity around your budget is critical.
If you've decided with your lender that you don't want to spend more than $500,000, don't look at homes listed at $575,000. It's tempting, but it will only lead to disappointment or financial strain. Stick to your predetermined budget.
Lifestyle Considerations
Did you know there are 278 neighborhoods in Baltimore City alone? Add in Baltimore County, Howard County, Anne Arundel County, and Harford County—all within close reach of downtown—and the options can feel overwhelming.
Narrowing down your search geographically early on is crucial. Ask yourself:
Do you want to walk out your door to dozens of restaurants and bars? → Try Federal Hill, Little Italy, or Canton
Do you dream of having a chicken coop and riding a lawn mower around your property? → Consider Cockeysville or Sparks
Want to stay in the city but have a big home and yard? → Guilford or Homeland offer that suburban feel with urban convenience
Baltimore Neighborhood Snapshot
Each Baltimore neighborhood has its own lifestyle and pace. Here are a few of my favorites:
Federal Hill & Locust Point – Walkable, waterfront, and community-driven—perfect for city living enthusiasts
Canton & Brewers Hill – Modern townhomes, rooftop patios, and stunning harbor views
Hampden & Medfield – Eclectic, artsy, and full of character
Mount Vernon & Bolton Hill – Historic architecture meets cultural sophistication
Roland Park & Homeland – Lush, leafy, and timelessly elegant
Towson, Catonsville & Lutherville-Timonium – Suburban comfort with easy city access
Think about the lifestyle you want to live, and we'll find the neighborhood that matches.
Step 4: The Buyer Consultation
Once you've spoken with a lender, it's time to sit down with your Realtor to review the entire home-buying process from start to finish.
What to Expect
This meeting typically lasts 45–60 minutes and can be conducted in person or via Zoom. It's crucial that all parties involved in the purchase attend so everyone starts on the same page.
Topics Covered
During the Buyer Consultation, we'll discuss:
How tours and house hunting work logistically
How to craft a winning offer
What happens once you're under contract
A comprehensive review of all costs associated with purchasing a home
I cannot stress enough how important this meeting is. As a home buyer, you'll be guided by your Realtor, but as the main decision-maker in your home-buying journey, you should be informed and equipped with as much information as possible upfront. This empowers you to make confident decisions.
If a Realtor takes you out to tour homes with just a pre-approval and without conducting a Buyer Consultation, you're already starting a step behind your competition.
What Happens After the Consultation
Two important things will occur:
You'll sign a Buyer Agency Agreement – This legal document states that your brokerage will represent you in the home-buying process. You'll review various addendums with your Realtor and sign the necessary paperwork. In Maryland, this is legally required prior to touring homes.
Your home search platform will be set up – If you're working with an agent at a different brokerage, they'll set you up on an MLS (Multiple Listing Service) search based on your criteria. If you're working with me, I'll set you up on a Compass Collection.
What Is a Compass Collection?
Think of Compass Collections as a private, interactive Pinterest board—but for homes.
It's a beautifully designed digital workspace where you and I can organize, compare, and discuss homes in real time, all in one place. Instead of juggling endless links and screenshots from Zillow, Redfin, or text threads, Collections gives you a single hub for your entire home search.
Every property you're considering lives inside your personalized Collection, complete with photos, price history, neighborhood details, and status updates. This will be set up based on the criteria we discuss at the Buyer Consultation and can be adjusted at any time throughout the home-buying process.
Want to learn more about the Compass advantage? Read my detailed breakdown in Why Choose Compass.
After that, it's time to start house hunting!
Step 5: Touring Homes
This is the fun part! As a Maryland Licensed Realtor, I can show you any home listed in the MLS (Multiple Listing Service) or your Compass Collection.
How Tours Work
You can use your Collection to request tours, and we'll coordinate a time to view homes together. I'll handle all communication with the listing agents or sellers and schedule 30-minute blocks for each property.
Tips for Successful Home Tours
Tour a maximum of 5 houses at a time – Otherwise, they start blending together
Stick to the schedule – Sometimes you'll spot a "For Sale" sign while driving and be tempted to stop. Remember, there's a reason it wasn't on your list (maybe it's pending, over budget, or doesn't meet your criteria)
Use the restroom before you start – Simple but important!
Pack snacks and water if it's going to be a long day
Go in with an open mind but a discerning eye
What I'm Looking For During Tours
While you're evaluating the space, layout, and finishes, I'll be looking at items that may come up during an inspection. I'm trained to spot potential issues like:
Mold growth
Water damage
Structural cracks
Termite damage
Foundation concerns
As we walk through each property, I'll point out any red flags regarding condition.
The Timeline Varies
Sometimes I take clients out once and they find a house they love immediately. Other times, we search for 3–6 months before finding the right one. This is your journey, and you need to be comfortable moving forward with an offer when the time is right for you. I'll keep you on track and serve as a friendly reminder of your preferences throughout the process.
Step 6: Submitting an Offer
Once you've found a house you love, it's time to craft a winning offer. Every house and market situation is different, so every offer will be customized accordingly.
Key Components of an Offer
1. Pricing
Before submitting an offer, I'll conduct a deep dive on comparable properties ("comps") to see how the home is priced relative to its competition. Depending on the comps, current market activity, and how much interest a particular house is generating, we may go in at asking price, below, or above. It's very house- and market-specific.
2. Contingencies
You'll decide which contingencies to include in your offer. Common contingencies include:
Inspection Contingency – Protects your right to inspect the property
Financing and Appraisal Contingency – Ensures your loan and appraisal go through
HOA/Condo Contingency – Allows review of association documents
You'll also determine the length of each contingency period. Are you taking 5 days for inspections, or 10?
Here's the trade-off: The more contingencies you have (with longer timeframes), the more protection you have as a buyer—but the weaker your offer appears to sellers.
The Negotiation Process
Once an offer is submitted, the seller can:
Accept the offer
Decline the offer
Provide a counter offer, which we would then negotiate
Once all parties agree on the specifics and sign, the contract is ratified, and you're officially under contract!
Step 7: Navigating Contract to Close
Congratulations—your offer has been accepted! 🎉
You're officially under contract (on Selling Sunset, you'll hear the term "in escrow"). While this is an exciting milestone, it's also when many of the most important and detail-oriented steps happen behind the scenes.
Here's what to expect from contract to closing.
Home Inspections: Your Due Diligence
A home inspection is your opportunity to understand the property's condition beyond what you can see during showings. A licensed home inspector will carefully evaluate the home's major systems and structure—including the roof, plumbing, electrical, foundation, and HVAC.
The goal isn't to "pass" or "fail" a home, but to identify potential issues so you can make informed decisions.
Why Inspections Matter
They uncover hidden repairs or maintenance needs
They help you budget for future improvements
They give you peace of mind before making one of the biggest purchases of your life
Three Approaches to Inspections
Depending on market competitiveness and your comfort level, there are three main ways to approach inspections:
1. Full Inspection (Standard)
This is the most common route. You schedule a licensed inspector (usually within 7 days of going under contract) to perform a comprehensive inspection. After reviewing the report, you can request repairs, ask for a credit, or walk away if significant issues arise—depending on the terms in your contract. We typically recommend a standard inspection + termite + radon. Now is the time to get ancillary services as well like a separate sewer or chimney inspection.
2. No Inspection
In highly competitive, multiple-offer situations, some buyers choose to waive the inspection entirely to strengthen their offer. While this can make your offer more appealing to sellers, it also carries the most risk—because you're accepting the property as-is without learning about its true condition. As your Realtor, there are very few instances where I would recommend this.
3. "As-Is" with Inspection (No Right to Negotiate)
This is a middle ground. You still complete an inspection for informational purposes only but agree upfront not to request repairs or credits. It gives you valuable insight into the home's condition while signaling to the seller that you won't renegotiate based on findings.
Inspection Tips
Attend at least the last 30 minutes to review findings in person with the inspector. They'll also point out where your water shutoffs, gas shutoff, and other critical systems are located.
Don't panic over small items—no home is perfect. As a Realtor with over 100 inspections under my belt, I see the same issues repeatedly and can guide you through what potential repairs may look like. You can also consult with a licensed contractor in some cases
Focus negotiations on major health, safety, or system issues (think mold, a failing roof, or a non-functioning HVAC system)
Financing: From Application to Loan Commitment
Once you're under contract, it's time to formally apply for your mortgage (even if you've already been pre-approved). Your lender will dive deeper into your financial profile—reviewing tax returns, pay stubs, bank statements, and credit—to finalize your loan.
Here's What Happens Next
1. Full Loan Application Complete all lender paperwork and provide requested documentation promptly—timing matters!
2. Appraisal Your lender will order an independent appraisal to confirm that the home's value supports the purchase price.
3. Underwriting The underwriter verifies all your financial details and ensures the file meets lending guidelines.
4. Loan Commitment Once underwriting is complete, your lender issues a formal commitment letter—confirming your financing is approved and ready for closing.
✨ Pro Tip
Avoid any major financial changes during this period—don't open new credit cards, finance large purchases, or move money between accounts without consulting your lender first.
Clearing Title: Making Sure the Home Is Yours, Free and Clear
Before closing, the title company conducts a thorough search of the property's history to ensure the seller has the legal right to transfer ownership to you.
What "Clear Title" Means
It confirms there are no outstanding liens, unpaid taxes, judgments, or ownership disputes that could affect your right to the property.
Behind the Scenes
The title team reviews decades of property records and deeds
They verify boundary descriptions and check for any easements or restrictions
They resolve any issues (like old liens or clerical errors) before closing
They prepare your title insurance policy, which protects you and your lender from future title claims
By the time you reach settlement, your title is confirmed as free and clear—meaning full ownership can safely transfer to you.
Settlement Day: Closing Time!
This is the big day! At settlement (sometimes called "closing"), you'll meet with the title attorney or settlement agent to review and sign your final loan and closing documents.
Here's What to Expect
A day or two before closing, you'll receive your final "cash-to-close" number that needs to be wired to the title company. Plan ahead with your bank so there are no wire delays. The title company will send specific instructions
Bring your government-issued ID
Review the settlement statement line by line—it details every dollar in the transaction
Once everything is signed, you officially become a homeowner!
You'll receive your keys, take that celebratory photo (or pop a bottle of champagne), and begin your next chapter in Baltimore.
In Short
Once you're under contract, your team—agent, lender, and title company—work in sync to make sure every piece of the puzzle fits perfectly.
Your job is to stay responsive, keep your financials steady, and start dreaming about your move-in day.
Step 8: Understanding Upfront Costs
Beyond your down payment (which typically ranges from 3–20%), here's what to expect:
Closing Costs – Typically 4–6% of the purchase price. These include title fees, brokerage fees, lender fees, reimbursing the seller for prepaid taxes, and more
Inspections – $650–$850 (for standard home, radon, and termite inspections)
Appraisal Fee – $600–$700
Moving Costs – Varies by distance and services
Repairs & Maintenance – Plan a buffer fund for immediate updates
** Do not spend every last penny you have on settlement day. Leave a buffer for unexpected costs. You’re a homeowner now, there will be some larger expenses that you’ll want to plan for!
To Wrap it All Up
Buying a home in Baltimore is a major milestone—but it doesn't have to be overwhelming. With the right guidance, a clear plan, and a team that values transparency and communication, you'll feel empowered every step of the way.
If you're ready to start your home-buying journey—or just want to explore what's out there—I'd love to be your guide
👉 Let’s find your place in Baltimore.
📞 518-496-5674
Related Resources
Read my blog: Why Choose Compass – Discover the exclusive tools and advantages that set Compass apart
Read my blog: What are the Components of a Mortgage Payment
Read my blog: Who’s Involved in a Real Estate Transaction
Live Baltimore Down Payment Resources – Explore grants and incentives for Baltimore buyers
Baltimore Neighborhood Guides – Deep dives into the city's most popular neighborhoods
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