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What are some reasons a mortgage loan can fall through?

Updated: Jan 12, 2023

There are several reasons why a mortgage loan can fall through. One common reason is that the borrower's credit score or financial situation changes during the loan process. For example, if the borrower loses their job or experiences a significant decrease in income, they may no longer qualify for the loan. Additionally, if the borrower's credit score drops, the lender may no longer be willing to approve the loan or may require a higher interest rate. Another reason a mortgage loan can fall through is if the property being purchased does not appraise for the purchase price, which could mean that the lender is not willing to loan the full amount needed for the sale. Additionally, if the title of the property is not clear, or if there are any issues with the property that are discovered during the home inspection, the lender may not be willing to fund the loan.

Things you can control, don't make large purchases after you have gone under contract and don't switch jobs, if you don't really have to. Always speak with your mortgage loan officer.

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