An accepted offer isn't a closed sale. From my years in underwriting, most deals that fall apart do so for a handful of predictable reasons — and most of them can be spotted early.
The appraisal comes in low
The lender only lends against the appraised value. If a home appraises below the contract price, someone has to cover the gap: the buyer brings more cash, the seller lowers the price, or they meet in the middle. In a competitive market, I help buyers decide up front how much of a gap they can realistically cover.
The buyer's financing wasn't as solid as it looked
A quick pre-qualification isn't the same as a reviewed loan file. New debt, an undocumented deposit or income that doesn't calculate the way the buyer expected can all surface late. The strongest buyers have had their file reviewed by an underwriter before they ever make an offer.
Insurance is harder to get than expected
Homeowners insurance has become harder to find in parts of California, especially near canyons and open space. The lender requires it to fund, so I have buyers get quotes during the inspection period — not the week before closing.
Condo and HOA issues
For condos and some townhomes, the lender reviews the HOA itself: budget, reserves, owner-occupancy and any litigation. A problem there can stop an otherwise perfect buyer. It's worth checking before you're in contract.
For sellers: how to pick the offer that closes
The highest price isn't always the best offer. When I help sellers compare offers, I look at who the lender is, how thoroughly the buyer has been reviewed, the down payment, how an appraisal gap would be handled and how long the contingencies run.
A slightly lower offer with a fully underwritten buyer can be worth far more than a higher one that falls apart three weeks in and sends you back to market.
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