Top 4 Deal Killers for Homebuyers (and How to Avoid Them)

By Lauren Durmuş, REALTOR® · LIME Realty

Finding the right home is exciting. The weeks between an accepted offer and closing day are where things can go sideways, though. Most of the deals I see fall apart do it for the same few reasons, and nearly all of them can be avoided with a little planning.

1. Changing your finances before closing

A pre-approval is a great start, but it isn't a final loan approval. Your lender will check your income, job, credit and the home's appraisal again before funding, and many lenders take one more look at your credit right before closing.

Until you have the keys, keep your financial picture exactly as it was on your application:

• Don't open new credit cards or finance furniture or appliances.
• Don't change jobs or reduce your hours without talking to your lender first.
• Don't co-sign for anyone, and keep every bill paid on time.
• Don't move large sums of money around without asking your lender how to document it.

2. Skimming the HOA documents

If the home is in a neighborhood with a homeowners association, you'll receive a stack of documents: rules, budgets, fees and meeting minutes. Read them as soon as they arrive. Look for special assessments, pending lawsuits, rental or parking restrictions and how healthy the reserve fund looks. If something is unclear, ask a real estate attorney to review it. It's far better to find a deal breaker early than days before closing.

3. Expecting a perfect inspection

Every home has issues, even new construction. The inspection report will almost always list items, and that's normal. Focus your negotiations on the big things, like the roof, foundation, water intrusion, electrical and HVAC, rather than loose cabinet knobs and missing outlet covers. In a competitive market, a long list of small requests can push a seller toward another offer.

4. Forgetting about closing costs

Most buyers plan for a down payment. Fewer plan for closing costs, which cover things like lender fees, title, prepaid insurance and taxes. Your lender will give you a Loan Estimate early on. Review the "Estimated Cash to Close" line carefully and ask questions right away. A few days before closing you'll get a Closing Disclosure with the final numbers. Compare the two, and call your lender if anything changed.

The bottom line

Most deals close smoothly when buyers keep their finances steady, read everything as it arrives and keep inspection requests focused. My free Home Buying Guide walks through upfront costs and the full buying timeline, and I'm always happy to talk through your situation. For loan and legal questions, your lender and attorney are the experts to ask.