I'm confused as how to get a parking spot and where I'd get one. I was looking at the Mac website and what I got from it was undergrads can't apply for parking on main lots and there are waiting lists. So what lots could I get? Are they even close to buildings?

You have to apply for one and go to the security services office M-F 9-4 pm. I think the waiting lists are for the main lots not waiting lists across campus.

Lots M, N, O, and P and Stadium are available.
Source: http://parking.mcmaster.ca/Undergrad_Parking.htm l (right-side column of the page)

Read these FAQs:http://parking.mcmaster.ca/FAQ.html

Try to see if you can rent a parking spot from a home nearby the University. It would be cheaper than the rate McMaster charge. A bit of walking won't hurt either. Try the classified.