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Country guide

Buying a home in the United States

Your offer is a contract, but contingencies let you out. Losing them is how you lose your earnest money.

An offer that becomes a binding contract on acceptance, softened by contingencies for inspection, appraisal and financing. Title insurance and an escrow closing replace the conveyancer of other countries.

Below: the steps in order, then every document you need to get hold of before you are committed - who has it, what it costs, and the things it turns up, with what each one costs and how long it holds you up if you find it late.

Checked August 2026. Thresholds, grants and taxes change with budgets - the sources at the end are the ones to trust over this page.

The essentials

Down payment
20% avoids PMI
FHA loans from 3.5%, VA and USDA from 0% for those who qualify
Paid on acceptance
Earnest money, typically 1-3%
Held in escrow, refundable while a contingency stands
Government charge
Transfer and recording taxes, set locally
Ongoing property tax varies enormously by state and county
Who does the legal work
Title company or escrow agent; an attorney in some states
Binding at
Acceptance of the offer, subject to contingencies
Closing
Commonly 30 to 45 days

The steps, in order

  1. 1Get pre-approved, not pre-qualifiedPre-approval means the lender has checked your documents. Sellers in a competitive market discount anything less.
  2. 2Sign a buyer representation agreementSince the 2024 NAR settlement changed how commissions work, a buyer's agent will ask you to sign one before showing you homes. Read what it says about who pays them and how much.
  3. 3Make an offer with the contingencies you needInspection, appraisal and financing contingencies are your exits. Waiving them to win a bidding war means your earnest money is at risk if anything goes wrong.
  4. 4Inspect within the contingency windowThe window is short, often 7 to 10 days. A general inspection plus specialists for anything it flags - roof, sewer lateral, foundation, radon, pests.
  5. 5Appraisal and loan underwritingIf the appraisal comes in below the price, the lender lends on the lower figure and you find the difference or renegotiate.
  6. 6Close in escrowFunds and documents go to a neutral third party, title is checked and insured, and the deed is recorded.

Contingencies are the whole game

An accepted offer is a binding contract. What protects you is the contingencies written into it, each with a deadline. Miss a deadline and the protection lapses, usually taking your earnest money with it if you then walk.

Title insurance, not a title search alone

The title company searches the record and then insures you against what the search missed - forged deeds, undisclosed heirs, old liens. A lender's policy protects the lender only. An owner's policy is the one that protects you, and it is usually a one-off premium at closing.

Closing costs are real money

Two to five per cent of the price on top of the down payment: lender fees, title insurance, escrow, recording, prepaid taxes and insurance, and in some states transfer tax. Ask for a Loan Estimate early and a Closing Disclosure three business days before closing.

Attorney states and escrow states

In much of the north-east and parts of the south, an attorney must be involved in the closing. Elsewhere a title or escrow company handles it. Neither is your advocate on the contract unless you hire them to be.

The documents to get, and what they catch

6 documents to get hold of before you are committed, and 11 of the things they turn up - each with what it costs and what it does to your timetable if it is found late. Costs are indicative and move with the market.

  1. 1

    Seller's Disclosure Statement

    Do not skip

    The seller's written account of known defects. What it does not say matters as much as what it does.

    Where:
    The seller, required in most states
    When:
    Before or with the offer
    Cost:
    Free

    Prior water intrusion disclosed in a single line, with no mention of whether it was repaired

    Cost: $8,000-$40,000 for remediation and mouldDelay: Two to six weeks, often past the inspection deadline

    What a close read catches: A disclosed defect with no evidence of repair is reported as an open question rather than a closed one.

    Sold 'as-is' with the disclosure obligations waived, which is lawful in several states

    Cost: Every defect becomes yours; median deferred maintenance on an older home runs $15,000-$50,000

    What a close read catches: The contract's as-is language is quoted next to the inspection contingency, so you can see what protection is actually left.

  2. 2

    Purchase agreement and its contingencies

    Do not skip

    The offer is binding on acceptance. The contingencies are the only way out.

    Where:
    Your agent or attorney
    When:
    At the offer
    Cost:
    Free, or attorney fees $500-$1,500

    The inspection contingency window is seven days from acceptance, and includes a weekend and a holiday

    Cost: Earnest money at risk, typically 1-3% of price - $6,000-$30,000 on a $600,000 homeDelay: None, which is the problem: the deadline passes and the protection lapses

    What a close read catches: Every deadline in the agreement is extracted and dated, so a short window is visible before you sign rather than after.

    An appraisal gap clause commits you to cover a shortfall between price and appraised value

    Cost: The gap, in cash, commonly $10,000-$50,000 in a competitive market

    What a close read catches: Clauses that create a cash obligation beyond the deposit are flagged as an uncapped exposure.

  3. 3

    General home inspection, plus specialists

    Do not skip

    The general inspection finds symptoms. The specialists price them.

    Where:
    An inspector you choose
    When:
    Within the inspection contingency
    Cost:
    $300-$600 general; sewer scope $150-$400; radon $150; structural engineer $500-$1,200

    A cracked or root-invaded sewer lateral, which a general inspection does not look inside

    Cost: $5,000-$25,000 to replace, more if it runs under a streetDelay: Two to eight weeks with permits

    What a close read catches: Recommendations for further inspection are surfaced as unpriced items with a deadline attached.

    Federal Pacific or Zinsco electrical panel, which many insurers will not cover

    Cost: $2,000-$4,000 to replace, and the policy may be refused until it isDelay: Can hold up closing if the lender requires bound insurance

    What a close read catches: Findings that affect insurability are separated from ordinary maintenance, because they threaten the loan.

  4. 4

    Preliminary title report and title commitment

    Do not skip

    It lists every recorded interest that survives the sale.

    Where:
    The title company
    When:
    During escrow
    Cost:
    Included in closing costs; owner's policy $1,000-$3,000

    A mechanic's lien or unreleased mortgage from a prior owner still recorded against the title

    Cost: The lien amount if it cannot be cleared, plus legal costsDelay: Two to six weeks to clear, which pushes closing

    What a close read catches: Schedule B exceptions are read individually, since they are the items title insurance will not cover.

    A recorded easement giving a utility rights across the yard where the pool was planned

    Cost: The plan, and $5,000-$20,000 in redesign

    What a close read catches: Exceptions are read against what the buyer intends to do with the property.

  5. 5

    HOA or condo documents

    Do not skip

    Budget, reserves, rules, litigation, and any assessment coming.

    Where:
    The association, where one exists
    When:
    During the review period, which is short
    Cost:
    $200-$500 for the resale package

    A special assessment for roofing or siding voted but not yet billed

    Cost: $5,000-$40,000 per unitDelay: Usually billed within twelve months

    What a close read catches: Board minutes and the reserve study are read together, so an assessment in preparation is reported before it is levied.

    Rental restrictions that defeat the buyer's plan to let the unit

    Cost: The entire investment case

    What a close read catches: Rules are read against the buyer's stated intention rather than summarised.

  6. 6

    Loan Estimate and Closing Disclosure

    Do not skip

    The only reliable statement of what the loan actually costs.

    Where:
    Your lender
    When:
    Within three days of application, and three days before closing
    Cost:
    Free

    Closing costs land two to five per cent above the down payment and were never budgeted

    Cost: $12,000-$30,000 on a $600,000 purchaseDelay: Closing is delayed if funds are not cleared

    What a close read catches: The two documents are compared line by line, and any fee that grew between them is reported.

TrueBuy’s document review covers Australian property today. The reading itself is not country-specific - it works through every page, quotes what it finds, and prices what can be priced - and the checklist above is what that reading looks for in the United States. If you are buying there and want to be told when we cover it, the support chat is the place to say so.

What to watch for

The things that cost American buyers money, in the order they tend to be discovered too late.

  • Waiving the inspection contingency to win an offer, then discovering the foundation
  • An HOA with a special assessment coming, disclosed in documents nobody reads
  • Flood zone status and what the insurance actually costs before you commit
  • Property tax reassessment on sale, which can raise the bill sharply above the seller's
  • A dual agent representing both sides, which limits who is arguing for you

Where these figures come from

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Information, not legal advice. Rules differ by state, province and territory, and change. Confirm with a qualified professional in the United States before acting. TrueBuy’s document review and price estimates currently cover Australian property only.