Summary

22 items · 45–90 minutes

Why the Pre-Contract Stage Is the Most Consequential Moment in Your Home Purchase

Once you sign a residential purchase agreement, you enter a legally binding contract with real financial consequences for walking away. The earnest money deposit — typically 1–3% of the purchase price — can be forfeited if you back out under circumstances not covered by your contract's contingencies. That's why the work you do before signing matters enormously.

This checklist is designed to help you slow down at the right moment, ask the right questions, and confirm that every important piece of information is in order. It covers your financing position, the property itself, the contract terms, and the professionals you should have in your corner.

For a deeper look at how protective clauses work, see our guide on contingencies in real estate contracts. If you're also evaluating a rental rather than a purchase, the room-by-room lease checklist covers a different but related set of considerations.

Financing & Financial Readiness

Confirm your mortgage pre-approval is current and reflects the actual purchase price of this property. Must
Verify you have sufficient funds for the down payment, closing costs (typically 2–5% of the loan amount), and reserves your lender requires. Must
Understand the financing contingency in the contract and the deadline by which you must secure a firm loan commitment. Must
Avoid making any large purchases or opening new credit accounts between now and closing, as this can affect your loan approval. Must

Property Condition & Disclosures

Read the seller's disclosure statement in full and note any known defects, past repairs, water intrusion history, or material conditions. Must
Confirm the contract includes a home inspection contingency and a defined timeframe — typically 7–14 days — to complete it. Must
Research whether the property is in a flood zone and whether flood insurance will be required by your lender. Should
Ask your agent about any visible red flags observed during property tours — roof age, HVAC condition, foundation cracks, evidence of pest activity. Should
Consider ordering a sewer scope or well/septic inspection if the property uses those systems, as they are typically not part of a standard home inspection. Nice to have

Title & Ownership

Request a preliminary title report and review it for liens, easements, or encumbrances that could affect your ownership rights. Must
Confirm the contract provides for the seller to deliver clear, marketable title at closing. Must
Discuss owner's title insurance with your attorney or agent — it is separate from lender's title insurance and covers your equity interest. Should

Contract Terms & Contingencies

Identify all contingencies in the agreement — inspection, financing, and appraisal are the three most common — and confirm their deadlines are realistic. Must
Understand exactly what is and is not included in the sale: appliances, fixtures, window treatments, and outbuildings should be specified in writing. Must
Review the earnest money terms: the amount, where it is held, and under what conditions it is refundable. Must
Confirm the proposed closing date is workable given your current lease or living situation, and note any possession terms if the seller needs time after closing. Should
Check for any seller concessions negotiated (e.g., closing cost credits) and confirm they are clearly written into the contract. Should

HOA & Community Considerations

If the property is in an HOA, obtain and read the CC&Rs, bylaws, and current financials before signing. Must
Confirm the monthly or annual HOA dues, any pending special assessments, and whether the HOA is adequately funded. Must
Ask whether there are any pending litigation matters involving the HOA, which could affect your financing or future resale. Should

Professional Review

Have a licensed real estate attorney or experienced buyer's agent review the full purchase agreement before you sign. Must
Clarify any clause you do not fully understand — never assume ambiguous language is standard or harmless. Must

Who Should Be in the Room — and What to Have Ready

Navigating a purchase contract without professional guidance is possible, but it carries meaningful risk. At minimum, most buyers benefit from a licensed buyer's agent who represents their interests exclusively. In many states, having a real estate attorney review the contract before signing is standard practice — and in some states, it is customary or even required.

Required

Mortgage Pre-Approval Letter

Confirms your borrowing capacity and demonstrates to the seller that your financing is credible at the time of offer.

Required

Seller's Disclosure Statement

Documents what the seller knows about the property's condition — review carefully before signing any agreement.

Required

Licensed Buyer's Agent

Represents your interests exclusively during negotiations and contract review, and can flag issues before you commit.

Optional

Real Estate Attorney

Reviews contract language for legal risk and can negotiate modifications before you are bound to the agreement.

Required

Preliminary Title Report

Identifies any liens, easements, or title defects on the property before closing.

Optional

HOA Governing Documents

Provides CC&Rs, bylaws, financials, and meeting minutes that reveal the health and rules of the homeowners association.

Waiving Contingencies Has Real Consequences

In competitive markets, buyers are sometimes pressured to waive inspection or financing contingencies to make an offer more attractive. Doing so significantly increases your financial exposure. If you waive the inspection contingency and discover a major defect after closing, you bear the full cost of repair. If you waive the financing contingency and your loan falls through, you risk losing your earnest money deposit. Consult your agent and attorney before removing any protective clause from the contract.

Before you sit down with this checklist, gather the following documents: your pre-approval letter, the seller's disclosure statement, a copy of the proposed purchase agreement, any HOA governing documents if applicable, and preliminary title information if your agent or attorney has already received it. Having everything in one place before you begin review will make the process more efficient and less likely to miss something important.

The same disciplined approach that protects you in a home purchase applies in other consumer contexts. Our broader pre-purchase checklist for consumers walks through contract review principles that transfer across many high-stakes buying decisions.

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The content on this site is for informational purposes only and is not a substitute for professional advice. Always consult a qualified professional for guidance specific to your situation.