The Pre-Closing Checklist Every Real Estate Investor Should Follow
A Step-by-Step Guide to Protecting Your Investment Before It’s Yours
So, your offer has been accepted, and you're under contract. That’s a big milestone—but the deal isn’t done yet.
This next phase—the pre-closing stage—is where smart investors either protect their upside… or get blindsided by costly mistakes.
Even seasoned buyers can overlook crucial steps when emotions run high or timelines are tight. That’s why having a clear, repeatable pre-closing checklist is essential to avoid surprises and step confidently into ownership.
Whether you’re buying a flip, rental, or BRRRR project, here’s a comprehensive, investor-focused guide to what needs to happen before you sign on the dotted line.
What to do:
Hire a licensed home inspector as soon as escrow opens. In many markets, you’ll have a short contingency window (typically 5–10 days) to uncover major issues and negotiate repairs or credits.
Types of inspections to consider:
General home inspection – foundation, roof, HVAC, electrical, plumbing
Sewer scope – essential for older homes; detects root intrusion or pipe collapse
Pest/termite inspection – especially important in wood-frame or humid regions
Radon, mold, asbestos, lead paint – depending on the age and location of the home
Specialist follow-ups – if red flags appear, call in plumbers, electricians, or roofers for deeper analysis
Why it matters:
Unseen issues like foundation cracks, sewer backups, or knob-and-tube wiring can destroy your rehab budget. This is your time to renegotiate—or walk away if needed.
What to do:
The title company (or your closing attorney, depending on the state) should perform a full title search and issue a title commitment.
What to look for:
Existing liens or mortgages
Back taxes
Easements or encroachments
Boundary disputes
Ownership history (aka the “chain of title”)
Why it matters:
You need to make sure the property can be transferred cleanly and legally. Any title defects could delay closing or affect your ability to resell later.
Bonus tip: Always purchase title insurance—both for the lender (required) and for yourself (owner’s policy). It’s a one-time cost that protects you from future legal disputes.
What to do:
Make sure your lender, broker, or private funding source is fully looped in and on schedule.
If you're using a:
Conventional or DSCR loan – ensure underwriting, appraisal, and closing timelines are aligned
Hard money loan – confirm points, interest rate, term length, and exit strategy
Private money – get a written loan agreement with repayment terms clearly defined
Cash purchase – provide bank statements or a proof of funds letter to the escrow company
Why it matters:
Deals fall apart every day due to funding delays. The earlier you get your financing locked, the smoother the final days will be.
What to do:
If you’re getting a loan, your lender will typically order the appraisal after inspections are complete. Be proactive—follow up to ensure it’s been scheduled and reviewed on time.
Why it matters:
If the appraised value comes in below the purchase price, you may have to:
Bring more cash to close
Renegotiate the purchase price
Walk away (if you included an appraisal contingency)
Tip for BRRRR or value-add investors: If your strategy depends on future ARV-based refinancing, understand how this appraisal will impact your equity position and loan terms down the line.
What to do:
Carefully read through all required seller disclosures, including:
Past repairs
Known defects
Renovations done without permits
Insurance claims or water damage
If the property is in an HOA, review:
Monthly dues
Rules and restrictions (e.g., rental limits, pet rules)
Pending litigation or major assessments
Budget and reserve studies
Why it matters:
Surprise HOA fees or strict rental caps can derail your cash flow or long-term strategy.
What to do:
If you’re planning to renovate, rent out, or flip immediately after closing, get your team lined up now.
Typical vendors might include:
General contractor or handyman
Property manager
Cleaner and landscaper
Locksmith or security installer
Utility setup (water, gas, electricity, internet)
Why it matters:
You don’t want to waste the first week post-closing scrambling for quotes. Set up your onboarding timeline so day one is productive, not chaotic.
What to do:
Visit the property (or have your agent do it) one last time before closing to confirm:
The property is still in the same condition
No new damage occurred during escrow
All agreed repairs have been made
Fixtures and appliances included in the contract are still present
The property is vacant (if applicable)
Why it matters:
If something has changed—like a flooded basement, missing stove, or unremoved tenant—you’ll want to delay closing or negotiate credits before money changes hands.
What to do:
Ask the title company or closing attorney for your settlement statement (HUD-1 or Closing Disclosure) and review all line items:
Purchase price
Loan amount
Closing costs
Escrows
Title fees
Transfer taxes
Why it matters:
Mistakes happen. Double-check the math, verify you’re being credited correctly for any deposits or repairs, and confirm wiring instructions directly with the title office to avoid fraud.
What to do:
Set up your landlord insurance policy or builder’s risk policy (for renovations), and have it go into effect on closing day. You’ll usually need this before funds can be released.
Also notify:
Lender
Property manager
Tenants (if inherited)
Utility providers
HOA (if applicable)
A Smooth Closing Starts with Systems
Real estate closings can be fast-paced, emotionally charged, and full of moving parts. But they don’t have to be stressful.
By using a thorough pre-closing checklist, you’ll:
Avoid missed deadlines
Catch costly problems early
Communicate better with your team
Hit the ground running post-closing
Remember: you don’t make money at closing—you make money by avoiding mistakes before you get there.