You’ve found the house, the offer is signed, and you’re already picking out paint colors. In the industry, we call this the “honeymoon phase” of being under contract. But as any seasoned pro will tell you, a signed contract is just the beginning of a potentially rocky climb to the closing table.
In a recent roundtable, we aired some grievances about why deals have been falling through lately. From casino winnings to secret career changes, here is how to keep your closing on track.
We’ve seen it all: a buyer gets a new job mid-escrow and thinks, “I’ll just surprise the lender!” Or worse, a celebratory trip to the casino results in $10,000 of “untraceable” cash.
The Reality: Lenders find out everything. Whether it’s a new 1099 status or a new car loan that hasn’t hit your credit report yet, unexpected financial shifts are the #1 way to kill a deal.
The Fix: If you are under contract, don’t move money, don’t quit your job, and don’t buy anything bigger than a toaster without calling your lender first.
You’d be surprised how many sellers don’t realize they have “clouds” on their title until they try to sell. Unpaid medical bills, old contractor liens, or tax issues can stop progress dead in its tracks.
The Fix: Sellers need to be honest and proactive. Are all contractor bills paid? Is everything current? It’s better to clear these up early than to have a surprise just days before closing.
While a quick 30-day closing sounds great, the reality is that appraisals, inspections, and negotiations require precision timing. Trying to rush inspections and the appraisal order simultaneously can lead to conflict if significant issues arise. If we rush and order the appraisal too early and your inspection fails, you (or someone) may be out that money.
The Fix: Set a realistic timeline from the beginning. Expecting everything to happen in 30 days can cause unnecessary stress and potentially wasted money. Trust your agent and lender to set a realistic date—45 days might be more appropriate. Communication with your team is essential. If inspections turn up deal-breakers, tell your lender before they order the appraisal.
It’s tempting to want to force a deal through, but ignoring property conditions that clash with specific financing requirements (like FHA or VA) is a recipe for disaster. We’ve discussed attempts to push through properties with significant issues—like missing plaques on double-wides—hoping it would pass.
The Fix: Be realistic about the type of financing a property can qualify for based on its condition. Relying on “loopholes” or hoping an appraiser misses major repairs doesn’t work. Don’t try to fit a square peg into a round hole. Address necessary repairs before you’re under contract, or be prepared to change financing types or lose the deal.
Most “fall-throughs” aren’t caused by bad luck; they’re caused by a lack of education. Whether it’s understanding financing rules or the importance of managing your finances during the contract period, success is about transparency and communication.
Keep the emotions low by keeping the information flow high.
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