Most financing-related deal failures are preventable if an agent asks the right questions before writing an offer rather than after underwriting flags a problem, which is why the strongest agents treat the pre-approval conversation as more than a formality. A little diligence upfront protects both the buyer's timeline and the agent's reputation.
What are the most common reasons deals fall apart in underwriting?
Common causes include a buyer's debt-to-income ratio shifting after pre-approval (often from a new car loan or credit card use), appraisal values coming in below the contract price, undisclosed employment or income changes, and property condition issues that trigger additional lender requirements partway through the process.
What questions should agents ask a buyer's lender early on?
Agents should ask whether the buyer has been fully underwritten (not just pre-qualified), what documentation still needs to be collected, whether the buyer's debt-to-income ratio has any cushion, and whether the target property type (condo, multi-family, fixer-upper) is one the loan program can actually finance.
How does property condition affect financing?
Certain loan programs, particularly FHA and VA loans, have minimum property condition standards. Issues like peeling paint, missing handrails, or a non-functioning HVAC system can trigger repair requirements before closing can proceed, so agents should flag likely issues to the lender and buyer as early as possible.
What can agents do if a deal starts to show financing trouble?
Agents should get the buyer's lender and the listing side's lender talking directly and quickly, be transparent with the seller's agent about the timeline, and, when appropriate, ask whether a short extension or program switch (rather than a full deal collapse) is possible. A responsive, communicative lender relationship makes all of this faster.
Learn how to keep deals on track before they go sideways.
Agent Uplift Community is hosting a free Lunch & Learn on Wednesday, July 22, 2026 from 11:00 AM to 1:30 PM at 859 W Lancaster Ave in Bryn Mawr, PA. A guest speaker from The Federal Savings Bank will cover what agents can do to prevent deals from falling apart in underwriting, alongside a full walkthrough of buyer loan programs. Lunch is provided, free to attend, RSVP required.
Shaina McAndrews Team will be at the event. Connect with the team at montcoliving.com.
Suggested tags: real estate agents, underwriting, deal falling through, buyer financing, agent tips
