The Indiana Home-Buying Process: Your Step-by-Step Checklist

The Indiana Association of REALTORS (IAR) Purchase Agreement is the standard form used in most Indiana home sales. It covers price, financing, contingencies, closing date, and what stays with the home. Read it line by line with your agent before signing because everything in it becomes binding once both sides sign.

Cost: $0

Indiana law requires brokers to tell you in writing what type of agent they are working as: a buyer's agent, a seller's agent, a limited agent (Indiana's term for dual agent), or a transaction broker. This disclosure must happen at first substantive contact, not at the offer stage. Read it carefully so you understand who your agent legally works for.

Cost: $0

Your written offer includes the price, financing details, contingencies (inspection, financing, appraisal), closing date, and earnest money. Earnest money in Indiana is typically 1 to 3 percent of the price and shows the seller you are serious. It gets credited toward your down payment or closing costs if the deal closes.

Cost: 1-3% of purchase price (held in escrow, applied at closing)

Since the August 2024 NAR settlement, Indiana sellers can no longer advertise buyer agent compensation in the MLS. The most common workaround in Indiana is to ask the seller for a closing concession that you direct to your agent under your buyer brokerage agreement. Build this into the offer so it is documented in writing on both sides.

Cost: Typically 2-3% of purchase price (often funded by seller concession)

Sellers often counter your offer. Your agent helps you respond on price, which contingencies stay or go, what repairs or credits the seller will cover, and the closing date. Do not waive your inspection contingency unless you really understand the risk of hidden problems.

Cost: $0

Indiana is a title-company closing state, not an attorney closing state. The title company handles the title search, prepares closing documents, holds escrow funds, and records the deed after closing. You can pick the title company yourself or use the one your agent or lender suggests.

Cost: $0 upfront (title fees are paid at closing)

Your earnest money goes into a separate broker trust account or the title company's escrow account, never the broker's personal account. Indiana rules require the deposit to happen promptly after offer acceptance, typically within 2 business days. Get a written receipt so you have proof of the deposit.

Cost: 1-3% of purchase price

Indiana law requires the seller of a one-to-four-unit residential home to give you a written disclosure of known property conditions. It covers the foundation, roof, plumbing, electrical, heating, water, sewer systems, and any other known defects. If you receive it after offer acceptance, you have a right to rescind under the Indiana disclosure statute, so review it quickly.

Cost: $0

If the home is a condo or in a homeowners association, the seller must give you the governing documents, bylaws, rules, current budget, recent financial statement, and any pending special assessments or lawsuits. You have a short review window to rescind the purchase agreement if anything in the package is a deal-breaker for you.

Cost: $0 (seller pays disclosure prep; you may pay a small transfer fee at closing)

If the home was built before 1978, federal law requires the seller to give you a lead paint disclosure, any reports they have, and the EPA pamphlet 'Protect Your Family from Lead in Your Home.' You also get a 10-day window to do your own lead-based paint risk assessment if you want one.

Cost: $0 (a lead assessment, if you order one, runs $300-600)

Indiana does not require sellers or brokers to proactively tell you about registered sex offenders in the area. The Indiana Sex Offender Registry is a free public database run by the Indiana Department of Correction. Search it by address or zip code before you remove your contingencies if proximity matters to you.

Cost: $0

Pick an inspector with strong reviews and ask for a sample report so you know what to expect. The inspector checks the roof, foundation, plumbing, electrical, heating and cooling, and major appliances. Schedule the inspection early in your contingency window so you have time to negotiate.

Cost: $300-500 typical

Be there in person if you can. The inspector will walk you through what they find and answer questions on the spot. You will understand the home much better than from reading the written report alone, and you can ask about anything that worries you.

Cost: $0

Inspection reports are long and list everything from minor cosmetic issues to major defects. Focus on safety, structure, and big systems (roof, foundation, plumbing, electrical, heating, cooling). Ask your agent which items are normal wear versus deal-breakers.

Cost: $0

Standard inspections do not always cover every concern. Radon is common in parts of Indiana and worth testing for. A sewer scope catches old clay or root-damaged lines. Termite (wood-destroying organism) and mold inspections are also worth considering on older homes.

Cost: $100-400 per specialty test

Indiana keeps a public registry of properties used to manufacture methamphetamine, and a home in that registry cannot be transferred for residential use until it is cleaned to state standards. Also search the Indiana Department of Environmental Management database for underground storage tanks if the property has an older, industrial, or agricultural use history.

Cost: $0

Based on the inspection, you can ask the seller to fix items, give you a closing credit, or lower the price. Pick the items that matter most because asking for everything kills deals. A closing credit is often cleaner than seller-handled repairs because you control who does the work after closing.

Cost: Varies (negotiated as credit or price reduction)

Within a few days of accepted offer, send your lender every document they request. Missing paperwork is the most common reason loans miss closing dates. Stay reachable by phone and email so your lender can ask follow-up questions quickly.

Cost: Application fee $0-500 (varies by lender)

A rate lock holds your interest rate for a set number of days (typically 30, 45, or 60). Lock when you are comfortable with the rate and confident you can close before the lock expires. Ask your lender what it costs to extend the lock if the deal slips past the closing date.

Cost: $0 to lock (extensions may cost 0.125-0.5% of loan amount)

Your lender hires an independent appraiser to confirm the home is worth what you are paying. You pay for the appraisal up front, usually $500-700. If the appraisal comes in low you can renegotiate the price, pay the gap in cash, or walk away if your appraisal contingency allows it.

Cost: $500-700 typical

Underwriters often ask for follow-up documents like additional bank statements, gift letters, or written explanations of deposits. Reply same day if you can. Do not open new credit cards, change jobs, or make large unexplained deposits between application and closing because any of these can derail your loan.

Cost: $0

Your lender requires a homeowners insurance policy in place by closing day. Get quotes from at least 3 carriers and compare coverage limits, deductibles, and exclusions. Indiana sees tornadoes and severe storms, so ask specifically about wind, hail, and water backup coverage.

Cost: $800-2,000 per year typical

Within 24 to 48 hours of closing, walk through the home one more time. Confirm any agreed repairs are done, no new damage exists, the home is empty (unless the seller has a rent-back agreement), and all appliances and fixtures included in the sale are still there.

Cost: $0

Your lender must give you the Closing Disclosure at least 3 business days before closing. Compare it to the Loan Estimate you got at application and ask the lender about any cost that changed. This is your last clean chance to spot errors before you sign at the table.

Cost: $0

Wire fraud is one of the biggest risks in real estate today. Call the title company at a phone number you find independently (not from an email) and verbally confirm the wire instructions before sending any funds. Hacked email accounts send fake instructions to buyers every week.

Cost: $0

The title company runs a title search and issues two policies in Indiana: a lender's policy (required) and an owner's policy (optional but strongly recommended). The owner's policy protects you for as long as you own the home if a hidden defect, lien, or ownership claim shows up later.

Cost: $500-1,500 one-time premium typical for owner's policy

Federal law (the Foreign Investment in Real Property Tax Act, or FIRPTA) requires the buyer to withhold 15 percent of the gross sales price and send it to the IRS when the seller is a foreign person. The title company usually handles the paperwork on IRS Form 8288, but the legal obligation lands on you as the buyer. Get a written non-foreign affidavit from the seller, or confirm withholding is in motion.

Cost: $0 out of pocket (withholding comes from seller proceeds)

Indiana residential closings happen at the title company without an attorney unless you choose to bring one. Read every page before signing or initialing. You will sign the mortgage, the note, the deed paperwork, the Closing Disclosure, and several affidavits. Expect to be at the table for an hour or two.

Cost: $0 to sign (closing costs collected separately)

Funds to close (down payment plus closing costs minus any seller credits) usually come by wire transfer the morning of closing. Some title companies will accept a certified or cashier's check for amounts under a threshold. Personal checks and cash are not accepted.

Cost: Total = down payment + closing costs - seller credits

Indiana requires Form SD-1 to be filed with the county assessor at or before recording the deed. The county recorder will not record your deed without it in most counties. The title company normally files SD-1 on your behalf, but confirm it is on the closing checklist so the deed gets recorded without delay.

Cost: Included in recording fees ($25-50 typical in Indiana)

Once the deed is recorded (often the same day, sometimes the next business day), you officially own the home. Collect all house keys, garage remotes, mailbox keys, alarm codes, and any warranty paperwork for the roof, appliances, or heating and cooling systems.

Cost: $0

Keep your closing packet, deed, title insurance policy, mortgage paperwork, and Closing Disclosure in a safe place because you will need them at tax time and when you refinance later. Update your address with USPS, your bank, employer, the BMV (Indiana driver's license), insurance carriers, and subscriptions.

Cost: $0-25 (USPS forwarding and BMV address change)