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Purchase Agreement
What Is a Purchase Agreement?
A purchase agreement is a legally binding contract between buyer and seller outlining the terms of a property sale.
It includes:
- Purchase price
- Closing date
- Contingencies
- Earnest money deposit
Why It Matters in a Mortgage
Lenders require a signed purchase agreement to:
- Begin underwriting
- Order appraisal
- Prepare closing disclosures
Contingencies protect buyers during inspection and financing review.
How It Works
Both parties sign the contract.
Deadlines and obligations are established.
Contingencies must be satisfied before closing.
Purchase Agreement vs. Closing Disclosure
Purchase Agreement → Buyer-seller contract
Closing Disclosure → Final loan terms
FAQs About Purchase Agreements
Can terms be renegotiated?
Yes, before final acceptance.
Are contingencies required?
Common, but negotiable.
Does signing obligate purchase?
Subject to contingencies.
Related Terms
