Reasons deals fall apart

Real Estate Agent with Treanor Real Estate

 After having too many deals fall apart, I had to put together this list to show to clients.  I have had a deal fall apart or almost fall apart for all of these reasons. 


•1.    Pay all of your bills on time.  A late payment can result in a lower credit rating, lowering your chances of being approved for a loan.

•2.    Don't take out any loans or make big purchases. A big purchase (car loan, new furniture, vacation, etc) can change your income/debt ratio.  An increase in debt can reduce the amount of money left over for your mortgage payment, reducing the amount of a loan you will qualify for.

•3.    Don't quit your job. It is important to keep the job you had when you applied for the loan.  The day of closing they will check to see if you still have your job.  Without a job the bank will not lend you any money.

•4.    Get all of the documents in to your mortgage broker as soon as possible.  Delaying the paperwork can cause problems in getting the loan approved on time.

•5.    Shop for homeowners insurance. Once you have a home under contract, it is good to start shopping around for homeowners insurance.  Homeowners insurance is required to be paid in full prior to closing.

•6.    Keep in mind closing dates are always subject to change.  Even though we all like the plan ahead and know our closing date well ahead of time, more often then not something always comes up delaying the closing date.

A lot of those were when the market was good, I'm sure there are even more reasons a deal can fall apart at the last minute now.

Posted by

Jim Treanor Jr.  REALTOR®, Broker Associate, ABR, CDPE, CRS, e-PRO, GRI
Treanor Real Estate

Waterbury/Wolcott, CT Area
203-510-5460 (texting available)

Hartford/New Britain, CT Area
efax - 860-736-2022


Comments (3)

Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor


One reason I have found for deals falling apart is because the buyer fails to disclose some financial information that shows up later in the process before closing.

Oct 23, 2008 02:40 AM
Jim Treanor
Treanor Real Estate - Southington, CT


I've had that one happen before as well.  I sort of included that with number 4.  That way if a financial problem does come up, it comes up early instead of a week before closing.

Oct 23, 2008 02:53 AM
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Great list.  I have seen #2 in action.  One of my collegues had a deal fall apart because the buyer purchased a new car before closing.  Oops!

Oct 23, 2008 06:06 AM