Mortgage Fell Through on Closing Day (And Other Mishaps): 6 Things That Can Go Wrong at Closing

Getting a mortgage and buying a house involve a lot of moving parts. If one piece falls through, it can cause everything to come to a screeching halt. Closing is one of the crucial steps in the homebuying process that can make or break a real estate transaction. Although closing issues can cause delays for buyers and sellers, knowing where the problems lie can help you effectively manage them. Understanding what can go wrong during the closing process can also help you feel prepared if things don’t work out as planned. With all this in mind, let’s walk through some common issues that buyers and sellers may encounter when closing on a house. Closing problem #1: The mortgage falling through on closing day Taking out a mortgage is the most common way to finance a home purchase. The mortgage application process puts a borrower’s finances under the microscope, so it’s not uncommon to discover a mortgage fell through even after the borrower gets the initial go-ahead from a lender. This could happen because the buyer didn’t actually get initial mortgage approval, also called mortgage preapproval. A mortgage could also fall through if you have changes in your financial situation. Let’s tak...