The Period Between Contract and Closing Is Where Deals Die
Getting an offer accepted feels like crossing the finish line — but in reality, it's more like the starting gun for a new race. The period between signing a purchase agreement and sitting down at the closing table is filled with deadlines, inspections, appraisals, and lender reviews. Any one of these can unravel a transaction if buyers aren't prepared.
Understanding why deals collapse after going under contract is the first step toward protecting yours. See our full walkthrough of the home buying process for a stage-by-stage overview of what to expect from offer through closing.
Making major financial changes after pre-approval.
Why it happens: Buyers assume that pre-approval locks in their financing, so they feel safe financing a car, opening a credit card, or changing jobs before closing.
Waiving contingencies without understanding the consequences.
Why it happens: In competitive markets, buyers feel pressure to make their offer stand out by removing inspection or financing contingencies to appear more attractive to sellers.
Failing to respond to lender requests quickly.
Why it happens: Buyers underestimate how document-intensive the underwriting process is, assuming pre-approval means the hard work is done.
Letting inspection emotions derail the negotiation.
Why it happens: A detailed inspection report listing dozens of items — even minor ones — can feel alarming and cause buyers to either panic-demand too much or walk away unnecessarily.
Not having a plan for an appraisal gap.
Why it happens: Buyers focus on winning the offer and don't consider what happens if the home appraises below the purchase price, especially in fast-moving markets where offers often exceed list price.
Appraisals, Inspections, and What Buyers Can Control
Two of the most common deal-killers — appraisal gaps and inspection disputes — are often treated as surprises when they're actually predictable. Buyers who understand these risks going in are far better positioned to navigate them without losing the deal.
~5%
Home purchase contracts that fall through
According to data from the National Association of Realtors, roughly 5% of home purchase contracts are terminated before closing in a given month.
#1
Top reason for contract termination
Financing issues consistently rank as the leading cause of failed home purchase contracts, according to Realtor survey data.
Appraisal gaps occur when a lender's appraiser values the home below the agreed purchase price. The lender will only finance based on the appraised value, leaving a shortfall the buyer must cover out of pocket, renegotiate with the seller, or walk away from. Learn more about how appraisals work and why they can complicate a sale.
Don't Confuse Pre-Approval With a Guaranteed Loan
A mortgage pre-approval is based on your financial picture at a specific point in time. Lenders re-verify employment, credit, and assets close to the closing date. Any significant change — a new loan, a missed payment, a job switch — can trigger a denial even days before closing. Treat your finances as frozen from the moment your offer is accepted.
Inspection findings, meanwhile, become deal-breakers when expectations are misaligned. Buyers who expect a perfect home and sellers who expect to sell as-is are on a collision course. Negotiating repair credits or price reductions is standard — but only when approached constructively. Refusing to negotiate at all, or demanding a complete renovation, typically ends conversations. Buyers should also review common home buying myths that may be shaping unrealistic expectations going in.
This article is for general informational and educational purposes only and is not financial, legal, or real estate advice. Consult a licensed real estate professional, attorney, or financial adviser for guidance specific to your situation.
