Montgomery County mortgage planning must follow the parcel, not the mailing address.

Montgomery County is not one uniform tax or property market. A Rockville mailing address may be inside or outside the incorporated city. A Silver Spring address can describe many different neighborhoods and tax classes. Bethesda may mean a downtown condominium, an older detached home, or a property in a special taxing area. Build the approval from the legal parcel and ownership structure.

Estimate the new owner’s tax bill, not the seller’s escrow

Maryland assessments are phased on a three-year cycle, and an owner-occupant may have Homestead or other credits that do not automatically transfer. Montgomery County’s official estimator is specifically designed to show estimated tax and non-tax charges for a new owner’s first full fiscal year using an address or account number.

Review the SDAT assessment, current bill, phase-in value, state tax, county tax class, municipal tax when applicable, and charges such as solid-waste, water-quality, or benefit assessments. The state’s 2026–2027 real-property rate is $0.112 per $100 of assessed value, but the rest of the bill must be property-specific.

Calculate deed charges before choosing a credit

Montgomery County’s MC311 guidance describes a county transfer tax typically equal to 1% of the selling price and a progressive recordation-tax schedule. State transfer tax, first-time Maryland homebuyer treatment, exemptions, mortgage debt, and contract allocation can change the final amount.

Ask the settlement company for a written purchase estimate using the actual price, proposed loan amount, buyer status, and expected instruments. A seller credit can cover only permitted costs and cannot exceed program limits or actual eligible charges. Coordinate the credit, assistance, gift funds, and required borrower contribution before the offer is signed.

Review condominiums, cooperatives, and HOAs as collateral

Montgomery County’s common-ownership communities include homeowner associations, condominium associations, and cooperatives. For a condominium or co-op, approval involves both the borrower and the project. Order the lender questionnaire and governing documents early enough to review master insurance, reserves, delinquency, special assessments, litigation, inspections, repair plans, commercial space, and ownership concentration.

Co-op financing is structurally different because the buyer generally acquires shares and a proprietary lease rather than fee-simple real estate. Not every loan program or lender supports every project. For any association, include dues and active assessments in the payment and preserve cash for increases that underwriting may not predict.

Check WSSC charges and utility responsibility

WSSC Water serves much of Montgomery County. A property can carry front-foot benefit or deferred house-connection charges, and the 2026 WSSC schedule shows that some connection assessments are billed annually for 30 years unless paid off. Confirm whether an assessment exists, its annual amount, remaining term, payoff option, and treatment at settlement.

For a condominium, determine which utilities are included in dues and which are separately metered. For detached or attached homes, review actual usage, water and sewer service, private well or septic where applicable, and any planned connection or repair.

Put the county radon requirement on the contract calendar

Montgomery County requires a radon test for many sales of single-family homes and townhomes. The test generally must be performed within one year before settlement, both parties must receive the result, and exceptions apply. This is a transaction requirement, not a substitute for a broader home inspection.

Decide who will arrange the test, whether an existing result is timely and compliant, and how mitigation will be handled if levels are elevated. Do not assume an appraisal, standard inspection, or lender property review satisfies the county rule.

Coordinate assistance without stacking conflicts

Eligible purchasers can explore the Maryland Mortgage Program and any current county or municipal housing resources. Each source can have its own income, sales-price, occupancy, education, property, funding, repayment, and lien-position rules. Availability can change.

Have the first-mortgage lender and assistance administrator confirm compatibility in writing. The loan estimate should account for association dues, property-specific taxes, insurance, and all subordinate financing so the buyer understands the real monthly obligation.

Montgomery County pre-offer checklist

1. Confirm the SDAT account, municipality, tax class, and legal ownership type.
2. Run the county’s address-based new-owner tax estimate.
3. Obtain a settlement estimate for transfer, recordation, and recording charges.
4. Order condominium, co-op, or HOA documents and lender review immediately.
5. Identify WSSC or other benefit assessments and outstanding utility charges.
6. Schedule any required radon test within the contract and statutory timeline.
7. Price homeowners, condominium, flood, and other required insurance.
8. Coordinate credits, gifts, assistance, and reserves with the selected program.

Official local resources

• Montgomery County: Estimated Real Property Tax and Other Charges
• Maryland SDAT: 2026–2027 Property Tax Rates
• Montgomery County MC311: Transfer and Recordation Tax Rates
• Montgomery County MC311: Radon Testing for Home Sales
• Montgomery County MC311: Common Ownership Community Registration
• WSSC Water: Front Foot Benefit and House Connection Charges
• Maryland Mortgage Program: Down Payment Assistance

This page is for general educational purposes and is not legal, tax, insurance, credit, or individualized financial advice. Tax bills, assessments, association charges, insurance, property conditions, loan availability, and underwriting requirements vary. Verify property-specific information with the appropriate agency, association, insurer, settlement professional, and lender. All loans are subject to approval. Equal Housing Lender.