It is estimated that nearly one-third of all real estate contracts never make it to the closing table.  What causes these deals to crumble?

Here are three reasons your deal could fall apart as a home buyer:

#1 Financing
Securing a home mortgage has become a lot tougher–Lenders have tightened their restrictions considerably and as a result, more buyers are losing real estate deals because of their inability to secure financing. A preapproval is not a guarantee that you will be able to get the loan you need. Once the actual loan application process is underway it takes very little, like a slight change in income or a minimal increase in interest rates, to tip the scales and put an end to a deal. Once a lender starts digging into your financial portfolio, (and they will dig deep), they may discover tiny details that prevent you from qualifying for the proper loan.
**I always encourage my buyers to get pre-approved before they start the home buying process and to be honest and upfront with your mortgage lender.

#2 Appraisals
Home appraisers use historical data to help determine the value of a home, and when real estate values are on the rise it can be tough to find comps that support the sales price, even if both buyer and seller have agreed upon the dollar amount. In essence, the “paper trail” hasn’t caught up to the market trend, which leads to low appraised values. As a buyer, that may sound like good news at first because a lower appraised value means you might get a better deal on the house. After all, who would pay more than appraised value? Unfortunately, sellers are not required to lower their price to meet the low appraisal. If a seller is unwilling to lower their price and a buyer is unwilling to pay above appraised value, the deal will fall apart.

#3 Buyers’ Remorse
Buyers’ remorse is a growing number of real estate transactions are deteriorating. For most people, their home is their single largest asset which signifies the level of commitment needed to make the purchase. If a person is not completely comfortable with their decision to buy a home, they may back out of a deal citing inspection results. Things that used to get overlooked have turned into deal-breakers.

To read more from Forbes and Monte Mohr, visit here.