A purchase agreement, also known as a purchase contract, is a signed agreement between the buyer and seller describing all the terms of a transaction. The fully executed purchase agreement, including all addenda and counteroffers, typically is requested as part of the mortgage loan preapproval process, which can typically result in a written loan decision.
A purchase agreement may also be requested for construction financing in order to document acquisition costs. It may also be needed if the building lot was acquired in a separate transaction.
Avoid delays in processing your loan
For all documents:
- Make sure the copies you send are legible.
- Do not include documents that have been altered with correction fluid or by other means.
- Submit the entire requested document and include all pages (even blank ones).
For this document:
- Be sure that a construction-related purchase contract contains signatures of both the applicant and the builder.