Not Verifying the Buyer’s Finances Properly

Verifying buyer finances is crucial because one in five real estate deals falls apart, and over half fail because buyers couldn’t actually close. Imagine thinking your home is sold only to have the deal collapse days before closing or at the closing table—it’s devastating and happens more than you think. While this is technically your agent’s job, too many cut corners, leaving you to pay the price. Before accepting any offer, demand proof of funds (bank statements showing down payment and closing costs), a mortgage pre-approval (not just pre-qualification—this means the lender verified income, pulled credit, and factored in taxes and insurance), and a homeowners insurance quote. Insurance is a huge reason deals fall apart last minute because lenders qualify buyers based on the full monthly payment including principal, interest, property taxes, and homeowners insurance. With insurance costs skyrocketing in many states, buyers who didn’t get quotes early may no longer qualify when the true insurance cost is revealed. If the buyer didn’t account for actual insurance costs in their approval, they may no longer qualify and your deal dies. Don’t just take your agent’s word—ask to see the documentation because once you’re under contract, the clock is ticking on your next move, moving plans, and possibly your next home purchase.