Congratulations. You're under contract. The sign is coming down, the inspection is scheduled, and you can already imagine yourself moving in. You've made an offer, the sellers accepted, and you're all in. That enthusiasm is well-earned, but here's something most buyers don't think about until it's too late: getting to closing is not guaranteed. Even with a signed contract in hand, deals fall apart every single day in O Fallon and across the nation. Some fail in the final hours. Some crumble during underwriting. Some collapse the moment an inspector walks through the front door.

As a real estate agent working with buyers in O Fallon, Illinois, I've watched more than a few deals come undone when things seemed certain. The good news is that most of these situations are preventable, or at least manageable, if you know what to watch for. Let's talk about the biggest deal breakers that can blow up a home sale after you've already gone under contract, and more importantly, how to fix them before they sink your deal.

Financing Falls Through

Financing issues are the number one reason pending sales collapse, accounting for about 30-40% of failed deals. Think of a pre-approval as a preview, not a promise. A preapproval is not the same as an officially approved loan, and between the offer and closing, things change. If a buyer has been pre-approved and has a change in their status, such as difference in employment, new negative credit issue, accrual of additional debts, or a change in lender guidelines can cause the lender to cancel the financing.

I cannot stress this enough: do not take on any new debt after you go under contract. That new car, the furniture on credit, the business loan your spouse just got approved for—all of it can tank your mortgage approval. Your lender is watching your financial profile like a hawk during underwriting. One missed payment, one new credit card, one job change and suddenly the money you thought was locked in vanishes.

How to fix it: Work directly with your lender during the contingency period. Respond to document requests within 24 hours. Be proactive about any red flags your lender mentions. Stay employed. Stay financially stable. And if something does change—job loss, health issue, financial setback—tell your agent immediately so we can work with your lender to find solutions before it becomes a deal breaker.

The Appraisal Comes in Low

A buyer's lender will only lend up to the value of the property, so if the home value appraises lower than the agreed amount, the buyer cannot secure the full mortgage. This is where contract price and reality collide. You negotiated hard to get that price. The sellers agreed. Your lender approved the loan amount. But then the appraiser looks at the home and comparable sales in the area and decides it's worth less than what you agreed to pay.

Now you have a gap. If the home appraised at $350,000 but your contract price was $375,000, your lender will only finance $350,000. That means you need to come up with the extra $25,000 out of pocket, or renegotiate with the seller, or walk away. Many buyers don't have that cushion built into their savings.

How to fix it: Know the market in your specific neighborhood in O Fallon before you make an offer. Work with a real estate agent who can pull recent comps and make sure your offer is realistic for the area. If the appraisal does come in low, you have options. You can ask the seller to lower the price. You can request a second appraisal. You can increase your down payment. But the sooner you know about an appraisal shortfall, the more time you have to solve it.

The Home Inspection Uncovers Major Problems

Buyers are no longer rushing to remove contingencies. They are slowing down, reviewing reports carefully, and negotiating repairs with confidence. In 2026, home inspections are real deal breakers again—but only for homes with real problems. Water damage is one of the most common and costly home inspection red flags. Evidence of moisture can signal deeper structural concerns, including foundation damage, improper grading, or compromised drainage systems.

The true dealbreakers are structural damage, environmental hazards, and access issues that either cannot be fixed within a reasonable budget or signal deeper problems with the property. Foundation cracks, termite damage, black mold, outdated electrical wiring, plumbing issues—these are the kinds of findings that kill deals. A stuck window or a missing door knob? That's negotiable. A foundation that's settling and cracking? That's a different conversation.

How to fix it: If you're the buyer, attend your home inspection if possible. Ask questions. Understand what's a cosmetic issue and what's a structural one. If major problems show up, you have options. You can request repairs from the seller. You can ask for a credit to handle repairs yourself. Or you can negotiate a lower purchase price. Don't be afraid to walk away if repair costs are astronomical and the seller won't budge. That's exactly what your inspection contingency is for.

Title Issues Derail the Deal

Liens, disputes, or claims against a property must be cleared before closing. If they aren't, the sale can't proceed. Title problems are less common than financing or inspection issues, but when they happen, they're serious. Maybe there's a contractor lien from work done years ago that was never paid off. Maybe a property boundary dispute with a neighbor has never been resolved. Maybe there's an old easement that restricts how you can use the property.

The title company should catch these issues during the title search, but that doesn't mean they're easy to fix. Some liens require money to clear. Some disputes require legal intervention. And sometimes these issues take weeks to untangle.

How to fix it: Get a title search done early. Don't wait until a week before closing to discover a lien. If issues come up, work with the seller to clear them. Many title issues are the seller's responsibility to fix, since the seller is transferring ownership to you. But knowing about them early gives you time to deal with them without rushing.

Contingency Deadlines Get Missed

This is the silent killer of home sales. Your contract specifies that inspections must be ordered by day 5, the inspection report due by day 14, and the appraisal ordered by day 10. But life happens. Your inspector is booked solid. Your lender is slow ordering the appraisal. You're busy with work and don't send over the required financial documents on time. Missed deadlines: When either side doesn't do what they're supposed to do within the set time period, whether it's reviewing disclosures or signing documents, it can indicate second thoughts.

One missed deadline leads to another. Before you know it, you're 10 days past the inspection deadline and the seller is talking about canceling the contract.

How to fix it: Create a timeline. Write down every contingency deadline from your contract. Set phone reminders. Share the schedule with your lender, your inspector, and your agent. Respond to requests immediately. Don't assume your agent will track everything. Take ownership of the timeline. When deadlines slip, communicate with the other side right away and ask for an extension in writing.

Buyer's Remorse Kills Otherwise Solid Deals

Not every deal breaker is structural or financial. A deal may fall apart over a simple change of heart. A prospective buyer may suddenly decide the home is too close to a main road, for example, or that the location is too far from their office or in an undesirable school district. A seller may belatedly realize that they can't afford to pay a higher interest rate on a new mortgage for their next home, or may simply feel nostalgic and decide they don't want to leave. Depending on how the sale agreement is written and the contingencies included, there may be legal or financial consequences for scrapping a deal when you simply have cold feet or just change your mind.

This happens more often than you'd think. The emotional weight of a six-figure purchase hits differently once the contract is signed. Some buyers panic. Some sellers get cold feet about moving. And if they don't have a legitimate contingency reason to cancel, they could lose their earnest money or face legal action.

How to fix it: Be absolutely certain before you make an offer. Walk the neighborhood at different times of day. Visit the area on a weekday and a weekend. Talk to neighbors if you can. Sleep on it. Make sure you're buying for the right reasons, not just caught up in the moment. Your agent should help you think through all the angles before you commit. And if you do get cold feet after going under contract, talk to your agent about your actual options before you do something that costs you money.

Issues with HOA Documents or Insurance

These seem minor compared to foundation issues or financing problems, but they can absolutely be deal breakers. A buyer reviews the HOA documents and discovers surprise fees coming down the line. Or their homeowners insurance company refuses coverage because of the home's age, location, or condition. A homeowners insurance contingency allows the buyer to confirm they can obtain adequate homeowners insurance for the property at a reasonable cost. If the buyer is unable to secure coverage – due to factors like location, condition, or risk exposure – they can cancel the contract without penalty. This contingency is especially important in areas prone to natural disasters, such as floods, wildfires, or hurricanes, where insurance may be limited or expensive.

In the O Fallon area, insurance is usually not a major issue, but HOA fees can be. If a property is in a community with an HOA, review those documents early and completely understand your financial obligations.

How to fix it: If you're buying in a community with an HOA, request the documents before you make an offer if possible. If not, get them immediately after going under contract. Read through them carefully. Understand what's included in the fees and what might be coming. If there's a special assessment planned, factor that into your decision. For insurance, get quotes from multiple carriers before closing. Don't wait until the last minute to discover your lender's preferred insurer won't cover the property.

Working with the Right Real Estate Agent Matters

Here's the thing: most of these deal breakers can be managed or prevented if you're working with someone who knows the process, knows the local market in O Fallon, and can see problems coming from a mile away. I've been through hundreds of transactions. I know what questions to ask. I know which inspectors are thorough. I know which lenders are reliable and which ones are slow. I know when to push and when to give the other side room to work.

Your real estate agent should be your quarterback during the contingency period. We keep the timeline moving. We communicate between all parties. We spot issues early and solve them before they become deal killers. When your lender is slow, we follow up. When the inspector finds something concerning, we help you understand what it means and what your options are. When an appraisal comes in low, we know how to handle the negotiation.

That's my job. And it's a critical one when you've got a contract on the line and you're counting down the days to closing.

The Bottom Line on Deal Breakers

Most home sales do close successfully. The process works most of the time. But it works because someone is paying attention to every detail, every deadline, and every potential problem. Between now and closing day, there are dozens of things that could go wrong. Financing could fall through. The appraisal could come in low. The inspection could uncover expensive surprises. A contingency deadline could slip. But with the right preparation, the right lender, the right inspector, and the right real estate agent in your corner, you can navigate these risks and get to the closing table.

If you're buying a home in O Fallon, Illinois, and you want someone on your team who will fight to keep your deal alive, I'm here to help. I know this market. I know these neighborhoods. And I know exactly what it takes to get from under contract to keys in hand. Visit my website to learn more about how I work with buyers through the entire closing process, or reach out to discuss your specific situation. Let's make sure your deal is one of the ones that closes.