🚨 Why Mortgage Loans Fall Through (and How to Stop It From Happening) 💼

🛑 Loan Fall-Throughs Explained: Top Mortgage Deal Killers & Fixes 🔧

August 02, 2025•2 min read

🛑 Loan Fall-Throughs Explained: Top Mortgage Deal Killers & Fixes 🔧

🚨 Why Mortgage Loans Fall Through (and How to Stop It From Happening) 💼

🛑 Loan Fall-Throughs: Why They Happen and How to Fix Them

Few things are more frustrating than getting close to closing day only to have the loan fall through at the last minute. Whether you're a buyer, agent, or investor, understanding why mortgage loans collapse—and how to avoid it—can save you time, money, and heartache.

💥 Top Reasons Mortgage Loans Fall Through

1. Credit Score Changes
Buyers often assume their credit is “locked in” once pre-approved. But even small changes, like a missed payment or new debt, can derail underwriting.

2. Job or Income Changes
A new job, bonus, or commission structure can raise red flags. Lenders verify employment up to the day of closing.

3. Low Appraisals
If a home appraises for less than the purchase price, the lender won’t finance the full amount—causing deals to stall or fall apart.

4. High Debt-to-Income (DTI) Ratio
Too much debt relative to income can disqualify buyers, especially if unverified expenses or co-signed loans weren’t disclosed.

5. Title or Legal Issues
Unresolved liens, encroachments, or ownership disputes often surface during the title process and can delay or cancel the transaction.

6. Inadequate Documentation
Missing bank statements, tax returns, or other key documents can delay approval—or lead to denial altogether.

🛠️ How to Prevent Loan Fall-Throughs

· Educate Buyers Early
We provide upfront checklists and frequent follow-ups so no surprises pop up at the end.

· Avoid Big Financial Moves
No new credit cards, car loans, or job changes while under contract.

· Work with an Experienced Mortgage Broker
At Medallion Mortgage, we troubleshoot problems before they escalate and offer flexible lending options if traditional routes stall.

· Have a Plan B
We always line up alternative lenders—especially for self-employed borrowers, low-credit clients, or unique properties.

Whether you're buying your first home or investing in your next one, staying ahead of these issues is key to closing with confidence. If your loan has hit a roadblock, let us take a second look and get it back on track.

📞 Ready to get expert eyes on your deal? Contact Medallion Mortgage today.

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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