Common Purchase Package: Purpose & Content

Note: The specific documents included in a purchase package can vary depending on local laws, lender requirements, and the specific terms of the transaction. However, the following are generally common:

• Purpose: A contract that outlines the terms of the sale, including the purchase price, closing date, and any contingencies.
• Content: Includes the names of the buyer and seller, a legal description of the property, the purchase price, earnest money deposit, and any conditions or contingencies.

• Purpose: A document that provides the lender with information about the buyer's financial situation.
• Content: Typically includes the buyer's income, credit history, assets, and debts.

• Purpose: A document that provides the buyer with an estimate of the closing costs associated with the loan.
• Content: Includes the interest rate, monthly payments, and various fees.

• Purpose: Documentation that verifies the buyer's ability to afford the purchase price.
• Content: May include bank statements, investment accounts, or letters of credit.

• Purpose: A statement that shows the amount of property taxes paid or due on the property.
• Content: Includes the property tax assessment and the amount of taxes paid.

• Purpose: A document that outlines any defects or issues found during a professional inspection of the property.
• Content: May include information about structural problems, plumbing issues, electrical problems, or other defects.

• Purpose: A search of public records to verify ownership of the property and identify any liens or encumbrances.
• Content: Typically includes a title abstract or report.

• Purpose: A professional valuation of the property to determine its fair market value.
• Content: Includes the property address, a description of the property, and the estimated value.

• Purpose: A temporary insurance policy that provides coverage for the property until the permanent policy is issued.
• Content: Includes the policy number, coverage limits, and effective dates.

Additional Documents: Depending on the circumstances, other documents may be included, such as:

• Survey: A document that outlines the boundaries of the property.
• Homeowners insurance policy: Proof of insurance coverage for the property.
• Flood insurance certificate (if applicable): Proof of flood insurance coverage.
• Termite inspection report: A report that indicates whether the property has any termite damage or infestation. encumbrances (e.g., mortgages, liens), and the seller's signature.

**NOTE** These document terms and explanations are provided as educational purposes and are not intended to be a means of providing any legal advice or guidance. **