They are sending me to revisit a home and write a list of necessary renovations but our application hasnt been approved (is that odd?)

[Angelina Grace]

Good day all,
A lot has changed since my last posts. I very recently made a purchase of a home but now I would like to enter into a contract for deed with a company that sells REOs for ANOTHER home ( to flip). They say they got a clear title and are waiting to receive it from the bank they purchased it from. What seems odd to me is that their rep said
1) that I will be covered by title insurance anyway so its okay that its only a special/limited warranty deed
-- as far as I know title insurance doesnt everything and a limited warranty seems scary for first timer me.
2) He says they have owner financing/contract for deed applications from others but ours looks pretty good
- yet he is telling us to take the next step [ but I havent been told that they accepted our application.] They want me to go to the house a second time and write a list of everything that needs to be fixed and how much it will cost ( because the company wants to know that buyers know what they are getting into ) - that also seems fishy within itself... I know they dont care about me or whether I know what Im getting into.

They would prefer a cash purchase, I would have as well but i just bought another place so the only funds I have are for RENO.

Does this situation seem askew, odd, any red flags?