Can A Loan Fall Through At Closing?

Can A Loan Fall Through At Closing?
Yes, a loan can fall through at closing.

There are several reasons why this could happen, such as:
– The lender discovers new information that affects the borrower’s creditworthiness, such as a missed payment or a change in employment status.
– The property appraisal comes in lower than expected, causing the lender to deny the loan or require a larger down payment.
– The borrower’s financial situation changes, such as a sudden loss of income or increase in debt, making them ineligible for the loan they applied for.
– There are issues with the title or property that the lender requires to be resolved before closing, such as outstanding liens or boundary disputes.

It’s important for borrowers to be aware of the potential for a loan to fall through at closing and to work with their lender to address any issues that arise. Additionally, borrowers can take steps to mitigate the risk of a loan falling through by ensuring they have a strong credit history, saving for a larger down payment, and thoroughly researching the property they plan to purchase.

Hey there, it’s Kylie Mahar, and I’m excited to dive into a topic that many homebuyers may not be aware of: can a loan fall through at closing? As a financial expert and writer for, I’ve seen my fair share of loan applications and closings. But for this blog post, I wanted to do some extra research to bring you the most comprehensive answer possible.

To get started, I consulted with three experts in the mortgage industry: Zander Jameson, a loan officer with 10 years of experience; Ava Patel, a real estate attorney specializing in closings; and Xavier Nguyen, a credit specialist who helps borrowers improve their scores. With their combined expertise, we’ll explore the various reasons why a loan could fall through at closing and what you can do to prevent it.

So, whether you’re a first-time homebuyer or a seasoned pro, it’s important to know the potential pitfalls of the mortgage process. With the insights of these experts, we’ll help you navigate the closing process with confidence. Let’s get started!


Let’s Get Started

Jonathan Holmes

Jonathan Holmes is a gardening enthusiast and writer, known for his passion for sustainability and the natural world. As the founder of Planted Shack, he is committed to sharing his knowledge and experiences with other gardening enthusiasts, helping them to create beautiful and sustainable gardens. Jonathan is also a devoted father and enjoys spending time with his family outdoors, hiking, camping, and exploring nature.

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