Why This Checklist Matters Before You Sign

A purchase agreement — sometimes called a sales contract — is one of the most consequential documents you will ever sign. Once both parties execute it, you are legally obligated to proceed or risk losing your earnest money deposit, which typically runs between 1% and 3% of the purchase price. Mistakes made before signing are far easier to correct than those discovered after.

This checklist is designed for buyers who have found a property they want and are preparing to make a formal offer or review a draft agreement. For context on earlier stages of the process, see our step-by-step homebuying guide. Once you close, you may also want to consider future improvements — in which case, the renovation planning checklist is a useful next resource.

Financing and Mortgage Readiness

Confirm your mortgage pre-approval is current and reflects the purchase price, including any recent changes to your income or credit profile. Must
Request a Loan Estimate from your lender and verify the interest rate, loan type, monthly payment, and total closing costs. Must
Verify your down payment funds are liquid and accessible — confirm there are no penalties or holds on investment or retirement accounts you plan to draw from. Must
Understand your debt-to-income ratio and confirm it falls within your lender's qualifying threshold after accounting for all existing obligations. Should
Ask your lender whether a rate lock is available and what the lock period covers relative to your expected closing date. Should

Contract Terms and Contingencies

Confirm the purchase agreement includes a financing contingency that allows you to exit without penalty if your loan is not approved. Must
Verify an inspection contingency is included with a clearly defined timeframe — typically 7 to 14 days — for completing inspections and requesting repairs. Must
Check that an appraisal contingency is present so you are not obligated to pay above appraised value if the property comes in low. Must
Review the earnest money terms: confirm the deposit amount, who holds it in escrow, and under what conditions it is refundable. Must
Identify all contingency deadlines in the contract and calendar them immediately — these are hard cutoff dates, not suggestions. Must
Review any as-is clauses carefully and ask your agent or attorney to clarify what the seller is and is not agreeing to repair or credit. Should

Property Inspection and Condition

Hire a licensed home inspector to conduct a full structural and systems inspection before the inspection contingency deadline expires. Must
Order a pest inspection, especially in regions where termite or wood-destroying organism damage is common. Should
Review all seller disclosure documents line by line and ask your agent to clarify any items you do not understand. Must
Request copies of permits for any major work completed on the property to confirm improvements were done to code. Should
Consider specialty inspections — radon, mold, sewer scope, or foundation — if the property's age or location warrants them. Nice to have

Title, Legal, and Closing Preparation

Order a title search through a title company and review the preliminary title report for liens, easements, or ownership disputes. Must
Confirm that owner's title insurance will be issued at closing to protect against future title claims not caught in the search. Should
Have a real estate attorney or your buyer's agent review the complete purchase agreement before you sign — especially any addenda or counteroffers. Must
Request a preliminary closing disclosure or settlement estimate so you know the exact cash amount needed on closing day. Must
Confirm how the property will be titled — sole ownership, joint tenancy, tenants in common — and understand the legal implications of each. Should
Verify homeowner's insurance coverage can be obtained for the property and get a quote before closing, since some lenders require proof of coverage in advance. Must

Tools and Professionals You Will Need

Working through this checklist is not a solo exercise. The right professionals reduce risk and catch issues that buyers commonly overlook. Assemble your team before you make an offer, not after one is accepted.

Required

Licensed Buyer's Agent

Represents your interests in negotiations, reviews contract terms, and coordinates deadlines throughout the transaction.

Required

Real Estate Attorney

Reviews the purchase agreement and any addenda for legal risks, particularly in states where attorney review is required by law.

Required

Licensed Home Inspector

Conducts a thorough physical inspection of the property's structure, systems, and safety components.

Required

Mortgage Lender or Loan Officer

Confirms financing readiness, issues pre-approval, and provides a Loan Estimate outlining all loan terms and closing costs.

Required

Title Company or Escrow Officer

Conducts the title search, manages earnest money in escrow, and coordinates the closing process.

Optional

Specialty Inspector (radon, mold, sewer, pest)

Provides targeted assessments of specific hazards or systems that a general inspection may not cover in sufficient depth.

Verbal Agreements Are Not Enforceable

Anything a seller or listing agent tells you verbally — about repairs, inclusions, or conditions — carries no legal weight unless it is written into the contract or a formal addendum. Never proceed based on a promise that does not appear in the signed agreement. Ask your agent to put every agreed-upon term in writing before you sign.

Key Risks to Understand Before Signing

Signing without covering these bases is among the most expensive mistakes homebuyers make. Pay close attention to contingency deadlines, which are hard cutoffs written into the contract. Missing a deadline — even by one day — can waive your right to exit the agreement without penalty.

Waiving Contingencies Carries Real Financial Risk

In competitive markets, some buyers waive inspection or financing contingencies to make their offers more attractive. This is a significant financial risk: waiving an inspection contingency means you accept the property in its current condition, regardless of what a later inspection reveals. Waiving a financing contingency means you could forfeit your earnest money if your loan falls through. Consult your real estate attorney before removing any contingency from a purchase agreement.

It is also worth comparing this process to other large financial commitments. Unlike, say, co-signing a loan, a home purchase agreement involves a physical asset with its own independent risks: structural defects, title disputes, environmental hazards, and zoning limitations that a financial disclosure alone will never reveal.

This article is for general informational and educational purposes only and does not constitute legal, financial, or real estate advice. Consult a licensed real estate attorney, buyer's agent, and qualified mortgage professional for guidance specific to your situation and location.