What Actually Makes Mortgage Deals Fall Apart?
I get asked all the time what actually makes a deal fall apart.
Most people assume it’s something complicated or hidden in fine print — but recently, I’ve been seeing two very specific things happen more than usual.
And both are preventable with the right planning.
1. Employment Changes Between Approval and Closing
This one surprises people.
Just because your mortgage is approved doesn’t mean the lender is done verifying everything.
Right before funding, lenders will often do a verbal verification of employment. They call your employer to confirm that you’re still working there under the same terms as when you were approved.
Sometimes, between approval and closing, a borrower has been laid off or their employment situation has changed.
If that income was required to qualify, the lender can — and will — pull the deal. At that point, you no longer meet the guidelines you were originally approved under.
It’s incredibly stressful, and it can happen very quickly.
This is why I always tell clients:
- Don’t change jobs before closing unless we talk first.
- Don’t assume approval means nothing can change.
- Keep everything stable until keys are in your hand.
2. Buying Firm Without Selling Your Current Home
The second issue I’m seeing more often is people buying firm without selling their existing property — especially when their down payment is coming from the equity in that home.
For most people, the equity from their current home is their down payment.
If that home doesn’t sell in time — and there’s no backup source for the down payment — you won’t be able to close on your new purchase.
That creates a domino effect:
- You can’t fund the new mortgage.
- You risk losing your deposit.
- You’re left scrambling for solutions under pressure.
The solution?
✔️ Protect yourself with a sale-of-property clause
OR
✔️ Have a solid backup plan for where the down payment will come from if your home hasn’t sold yet.
Bridge financing can help in certain situations — but it only works if your property is sold firm.
A Little Planning Goes a Long Way
Most deals don’t fall apart because of mysterious lender rules.
They fall apart because of changes in employment or assumptions around down payment timing.
A little planning upfront can prevent a lot of stress later.
Before you:
- Accept a new job
- Buy firm
- Waive a sale condition
Let’s talk it through.
Sometimes one quick conversation is all it takes to protect your deal.