Kentucky process · buyer view

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

This checklist walks you through every step of buying a home in Kentucky, from getting pre-approved to picking up keys.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-6 weeks

Pre-Offer

You set up your finances, choose an agent, and figure out where you want to buy. This is the planning phase before any specific house is on the table.

  1. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Reach out to 2-3 lenders and apply for pre-approval. You will share recent pay stubs, two years of tax returns, and bank statements. The lender runs your credit and sends back a letter showing the loan amount you qualify for, which sellers expect to see attached to your offer.

    You'll need

    • W-2s (last 2 years)
    • Pay stubs (last 30 days)
    • Bank statements (last 2 months)
    • Photo ID

    Cost: $0

  2. Sign a written buyer representation agreement

    Your agentBefore your first home tour

    Since August 17, 2024, a Kentucky MLS buyer's agent must have you sign a written representation agreement before they can tour a property with you. The agreement spells out exactly what compensation your agent will seek and how it gets paid. Read it carefully and ask for changes if anything looks off.

    You'll need

    • Signed buyer representation agreement

    Cost: $0

  3. Review the KREC Agency Consent Form

    Your agentAt first substantive contact with an agent

    Kentucky requires your agent to give you the state Agency Consent Form before or at your first substantive conversation about a transaction. The form explains who they represent — you, the seller, or both as a dual agent. Sign it only after you understand the difference, because a dual agent cannot push hardest for your side.

    You'll need

    • Signed Agency Consent Form

    Cost: $0

  4. Tour homes and shortlist favorites

    YouOver a few weeks of active shopping

    Visit homes in person in your target neighborhoods and price range. Take photos and short notes during every tour, because the houses blur together fast. Narrow it down to two or three you would actually buy before writing an offer.

    Cost: $0

  5. Budget for closing costs and the Kentucky transfer tax

    YouBefore submitting an offer

    Buyers in Kentucky usually owe lender fees, title insurance, recording costs, and an attorney charge for the deed. The state's real property transfer tax runs $0.50 per $500 of price — about $1 per $1,000 — and while the seller normally pays it, you can agree otherwise in the contract. Plan to have these costs ready in cash on top of your down payment.

    Cost: varies

Phase 2 of 7 · typically 3-10 days

Offer

You write an offer on a specific home, agree on price and terms with the seller, and put earnest money in escrow.

  1. Decide your offer price and contingencies

    Your agentRight before writing the offer

    Work with your agent to set a price, an earnest money amount, and the contingencies you will keep — usually inspection, financing, and appraisal. Stronger offers waive fewer protections, but waiving them shifts risk onto you.

    Cost: $0

  2. Negotiate how your buyer's agent gets paid

    Your agentWhile drafting your offer

    Since the NAR settlement took effect, Kentucky sellers can no longer publish buyer-agent compensation on the MLS. Your buyer rep agreement lists the rate your agent expects; in the offer, you can ask the seller to cover it as a concession, agree to pay any gap yourself, or split it. Get the final arrangement written into the purchase contract.

    Cost: varies

  3. Sign the standard Kentucky purchase agreement

    Your agentWhen submitting your offer

    Most Kentucky residential offers use the Kentucky REALTORS standard residential purchase agreement. It covers price, earnest money, financing terms, inspection windows, and the closing date. Initial and sign every page your agent flags, and ask questions on anything you do not understand before it goes to the seller.

    You'll need

    • Signed purchase agreement
    • Pre-approval letter
    • Proof of earnest money

    Cost: $0

  4. Deposit earnest money into the broker's trust account

    Your agentWithin a few days of offer acceptance

    Earnest money in Kentucky goes into the principal broker's separate trust or escrow account, not the brokerage's operating funds — that is a strict rule under 201 KAR 11:045. You will wire or hand over a check within a few days of acceptance, and the money gets credited toward your down payment at closing.

    You'll need

    • Wire instructions or cashier's check

    Cost: varies

  5. Review the Seller's Disclosure of Property Conditions

    Seller's sideBefore or at contract signing

    Kentucky sellers must complete the state Seller's Disclosure of Property Conditions form, which covers known problems with the roof, plumbing, electrical, water, sewer, and environmental issues. Read it line by line, and treat anything marked 'unknown' as something to dig into during your inspection.

    You'll need

    • Seller's Disclosure of Property Conditions

    Cost: $0

Phase 3 of 7 · typically 1-2 weeks

Under Contract

The contract is signed and you start running the diligence work that the contingencies require.

  1. Open escrow with a title company or closing attorney

    Escrow / titleWithin a few days of offer acceptance

    In Kentucky, residential closings are handled by title companies, title agencies, or attorneys depending on the market. They order the title search, prepare the settlement statement, and hold your earnest money and down payment until everything is ready to fund.

    You'll need

    • Executed purchase agreement

    Cost: $0

  2. Review meth-lab and underground storage tank disclosures

    Seller's sideWithin the inspection period

    Kentucky law requires sellers to disclose if a property has been identified as a former methamphetamine lab and not yet certified as remediated, and any known underground storage tank — even abandoned or removed. If either is checked off, ask for the remediation certificate or tank closure paperwork before you remove your inspection contingency.

    You'll need

    • Meth-lab remediation certificate (if applicable)
    • Underground storage tank closure records (if applicable)

    Cost: $0

  3. Review HOA and condominium documents if applicable

    Seller's sideWithin the inspection or document review period

    If you are buying a condo, Kentucky's Horizontal Property Law under KRS Chapter 381 requires the seller to give you the declaration, bylaws, rules, recent financial statements, and any pending special assessments. Read the financials carefully — a thin reserve fund or a coming special assessment can change your monthly cost a lot.

    You'll need

    • Declaration and bylaws
    • HOA financial statements
    • Special assessment notices

    Cost: $0

  4. Check the Kentucky Sex Offender Registry yourself

    YouBefore removing contingencies

    Kentucky does not require sellers or agents to disclose registered sex offenders near a property — the state treats that as buyer-side homework. Search the Kentucky State Police registry online by the property address before you release contingencies if this matters to you.

    Cost: $0

Phase 4 of 7 · typically 1-2 weeks

Inspection

You hire a licensed inspector to check the home's condition and use the findings to negotiate repairs, credits, or a price cut.

  1. Hire a licensed home inspector

    InspectorWithin the inspection contingency window

    Pick an inspector who is licensed, insured, and gives you a written report with photos. A general inspection covers structure, roof, HVAC, plumbing, and electrical. Walk the property with them if you can — you will learn more from one tour than from any written report.

    Cost: $400-800 typical

  2. Order specialty inspections if you need them

    InspectorWithin the inspection contingency window

    Beyond the general inspection, consider radon, termite, septic, well water, and chimney inspections depending on the home. Older Kentucky homes, especially rural ones, often need a septic and well water check that a basic inspector will not perform.

    Cost: varies

  3. Get the federal Lead-Based Paint Disclosure for pre-1978 homes

    Seller's sideWithin 10 days of contract acceptance

    If the home was built before 1978, federal law requires the seller to give you a written Lead-Based Paint Disclosure and a copy of the EPA pamphlet, and you have a 10-day window to test for lead unless you waive it. Read what the seller filled in and decide whether to pay for a lead test or waive the right.

    You'll need

    • Lead-Based Paint Disclosure form
    • EPA Protect Your Family pamphlet

    Cost: $0

  4. Negotiate repairs, credits, or a price reduction

    Your agentWithin the inspection contingency window

    After the report comes in, you and your agent decide what to ask the seller to fix, credit you cash for, or knock off the price. Focus on safety items and big-ticket systems; cosmetic stuff is rarely worth a fight. If you cannot reach a deal, your inspection contingency is the point where you can walk away and keep your earnest money.

    You'll need

    • Inspection report
    • Repair request amendment

    Cost: $0

Phase 5 of 7 · typically 2-4 weeks

Loan & Appraisal

The lender finishes underwriting your loan and orders an appraisal to confirm the home is worth the contract price.

  1. Send the lender every document they ask for

    LenderThroughout underwriting

    Underwriting needs current pay stubs, updated bank statements, gift letters if anyone is helping with the down payment, and written explanations for any large deposits. Respond within 24 hours when they ask — slow paperwork is the most common reason closings get pushed.

    You'll need

    • Updated pay stubs
    • Updated bank statements
    • Gift letters (if applicable)
    • Letters of explanation

    Cost: $0

  2. Pay for and complete the appraisal

    LenderWithin 2-3 weeks of contract acceptance

    The lender orders an appraisal to confirm the home is worth at least the loan amount. You pay the fee up front, usually $500-700. If the appraisal comes in low, you negotiate the price down, bring more cash, or back out under your appraisal contingency.

    Cost: $500-700 typical

  3. Lock your interest rate

    LenderOnce a closing date is set

    Once you are close to a clear-to-close date, lock your rate with the lender for the period you need (often 30-45 days). Without a lock, market moves between underwriting and closing can change your monthly payment for the next 30 years.

    Cost: $0

  4. Buy a homeowners insurance policy

    You1-2 weeks before closing

    Lenders require proof of homeowners insurance before they will fund the loan. Get quotes from at least two carriers, pick a policy that covers replacement cost (not just market value), and send the binder and paid-receipt to your lender and closing officer.

    You'll need

    • Insurance binder
    • Paid premium receipt

    Cost: $1,200-1,800/year typical

Phase 6 of 7 · typically 1 week

Pre-Closing

All the moving pieces line up — the deed gets drafted, you review final numbers, and you do a last walk-through of the home.

  1. Confirm a Kentucky attorney is preparing the deed

    Attorney1-2 weeks before closing

    In Kentucky, only a licensed Kentucky attorney can prepare the deed of conveyance — a title agent or escrow officer cannot. Your closing company will usually engage one for you, but ask early who is doing it and what the fee will be, since it shows up as a real charge on your closing statement.

    Cost: $150-400 typical

  2. Review the Closing Disclosure three days before closing

    LenderAt least 3 business days before closing

    Federal law gives you a Closing Disclosure at least three business days before closing so you can compare every cost line by line. Check the loan terms, interest rate, monthly payment, and cash-to-close against what you were originally quoted. Flag any number that surprises you to your lender immediately.

    You'll need

    • Closing Disclosure

    Cost: $0

  3. Do the final walk-through

    Your agentWithin 24 hours of closing

    Within 24 hours of closing, walk the home one more time with your agent. Check that agreed-on repairs are done, that everything that was supposed to stay is still there, and that nothing new is broken. Bring the inspection report and any repair amendment with you.

    You'll need

    • Inspection report
    • Repair amendment

    Cost: $0

  4. Wire your closing funds

    Escrow / title1-2 days before closing

    Your closing company will send written wire instructions for your down payment and closing costs. Call them back at a known phone number to verify the wire details before sending — wire fraud in real estate closings is common. Send the funds 24-48 hours ahead so they clear before signing.

    You'll need

    • Verified wire instructions

    Cost: varies

Phase 7 of 7 · typically 1 day

Closing

You sign the final paperwork, money changes hands, the deed gets recorded, and you officially own the home.

  1. Sign the closing documents

    Escrow / titleOn closing day

    Plan for about an hour at the closing table signing the deed, the mortgage note, the closing statement, and a stack of lender disclosures. Bring a government photo ID and your phone in case the closer needs you to make a quick verification call.

    You'll need

    • Government-issued photo ID

    Cost: $0

  2. Confirm who paid the Kentucky transfer tax

    Escrow / titleAt closing

    Kentucky charges a real property transfer tax of $0.50 per $500 of price under KRS 142.050 — about $1 per $1,000. By default the seller pays at closing, but contracts sometimes shift it to the buyer. Look for the line on the closing statement and confirm it matches what your contract says.

    Cost: varies

  3. Make sure the deed gets recorded at the county clerk

    Escrow / titleSame day or within a few days of closing

    After signing, the closing company takes the attorney-prepared deed to the county clerk's office to record it. Recording is what makes your ownership public and final under Kentucky's conveyancing rules. Ask your closing officer to send you the recorded deed and the book and page number when it comes back.

    You'll need

    • Recorded deed

    Cost: $50-100 typical

  4. Get the keys and take possession

    Escrow / titleAt or shortly after closing

    Once the deed records and funds disburse, the seller hands over keys, garage door openers, and any codes. Change the locks within the first week — there is no way to know how many copies were floating around before you owned the place.

    Cost: $0

Sources

  1. [1] NAR Settlement FAQs
  2. [2] NAR Settlement Compensation Guidance
  3. [3] NAR Settlement Practice Changes
  4. [4] KRS Chapter 381 Horizontal Property Law
  5. [5] KRS §224.01-410 Meth Lab Disclosure
  6. [6] Kentucky Underground Storage Tank Program
  7. [7] KREC Agency Relationships and Disclosure
  8. [8] KRS §524.130 Unauthorized Practice of Law
  9. [9] Kentucky Bar Association Unauthorized Practice of Law
  10. [10] KREC Agency Disclosure Requirements
  11. [11] KREC Trust Account Requirements
  12. [12] KRS §324.160 Trust Account Violations
  13. [13] EPA Lead Disclosure Rule for Real Estate
  14. [14] HUD Lead Hazard Reduction Program
  15. [15] Kentucky State Police Sex Offender Registry
  16. [16] KRS §324.360 Seller's Disclosure
  17. [17] KREC Seller Disclosure Requirements
  18. [18] Kentucky REALTORS Standard Forms
  19. [19] KREC Transaction Standards
  20. [20] KRS Chapter 382 Recording and Conveyancing
  21. [21] KRS §142.050 Real Estate Transfer Tax
  22. [22] Kentucky Department of Revenue Transfer Tax

Last updated May 15, 2026