4 Potential Closing Day Problems & How You Can Avoid Them | DOBI

4 Potential Closing Day Problems & How You Can Avoid Them

So you’ve locked in on your dream home, signed the paperwork and now all you have to do is get to the closing table and make it official…unless the unforeseen and unimaginable happens. Here are some potential issues that could rear their ugly head on closing day and how to avoid them.

Pre Approval Spending Period

Having everything in line with your lender is one of the biggest factors in making sure that your closing day is smooth sailing. One thing your agent, loan officer, and title company should stress both verbally and through documentation are to avoid any large purchases until after you’ve closed and have the keys in hand. This is the largest purchase of your life so by ordering paint, new hardwood floors and a 75” TV all at the same time, this will surely raise flags with your bank as to your responsibility or lack thereof through spending habits. This also includes applying for other credit cards in between the pre and final approval process.


Having a solid home appraisal is integral as it gives a view as to the value of the home within the current market based on similar closings in the area. Occasionally a home appraisal can be calculated as more or less than the agreed amount. It’s when it comes in lower that you have a problem. This could put a roadblock in the process as the bank won’t approve your loan for more than what the home appraised for. In this case, the buyer and seller will need to negotiate a way to make up the difference which is known as an appraisal gap.

Home Inspection

A clean bill of health during the inspection process is what we hope and wish for but occasionally things can go south. If the inspector finds anything from a fault sewer line, shoddy electrical work and everything in between, your loan could be denied by your lender. Additionally, closing the deal on the allotted day could be halted if the buyer and seller can’t agree on who handles the issues that arose during the inspection. Something major like a roof replacement is enough for the seller to not want or be able to invest that kind of money and thus back out of the deal.


An integral part of the buying and selling process is title. Your lender will search for the property title of the home in question which shows the current owners and verifies that they are able to legally sell the property. If any sort of liens or claims like outstanding taxes or bankruptcies pop up, it could very well mean the deal will go south.

As always, we encourage you to be open and transparent with your agent, lender and title company on how you can be best prepared to check all the boxes for a smooth and seamless closing day.