If the buyer’s loan falls through, your home usually goes back on the market, and whether you keep the earnest money depends mostly on when it happened and what your contract says. The timing matters far more than the reason.
It is one of the most stressful calls a seller can get. It is also more fixable than it sounds, especially if you know what to check first.
Why loans fall through
Most failed loans trace back to a handful of causes. Some of them show up weeks into escrow.
- The appraisal comes in low and the buyer cannot cover the difference
- The buyer changes jobs, or loses one, in the middle of escrow
- New debt, like a car loan, throws off their qualifying numbers
- Underwriting finds something the pre-approval never looked at
- The buyer’s rate was never locked and the payment no longer fits
The deadline that decides the earnest money
Most purchase agreements give the buyer a set window to get their financing in place. If the loan fails inside that window and the buyer cancels the right way, the earnest money usually goes back to them.
If that window has already passed and the buyer still cannot close, the picture changes. The earnest money may be yours to claim.
That call gets made by the contract language, not by a guess from either agent. If it turns into a dispute, first, the brokers are likely to speak to see if they can help come up amenable solutions, or the issue may go to mediation, before court.
What you can do right away
Do not wait for the paperwork to settle before you move.
- Find out exactly why the loan failed and whether it can be fixed
- Ask whether the buyer can switch lenders or loan types in time
- Consider a short extension if the fix is real and close
- Get the home back on the market if it is not
- Call any backup offer that came in during escrow
How to lower the odds before you accept
The best protection happens before you sign. A pre-approval letter is a starting point, not a guarantee.
When an offer comes in, your agent should call the buyer’s lender directly. Has the buyer’s income actually been verified? Has credit been pulled? A lender who hesitates on those answers is telling you something.
The highest offer is not always the strongest one. A clean, verified loan can be worth more than a bigger number on a shaky one.
What it means for your listing
Going back on the market is not the end of the deal. Buyers will see the status change, and some will ask what happened.
The best answer is short and honest. The buyer’s financing did not come through, and nothing about the house changed.
If the appraisal was the problem, though, take that seriously. It is worth a hard look at price before you relist.
Simple summary
A buyer’s loan falling through usually sends your home back on the market. Whether you keep the earnest money depends on timing and the contract, so check the financing deadline first. Before you accept any offer, have your agent verify the loan with the lender. It is the cheapest insurance in the whole deal.
If you want to know what your home would sell for in today’s Las Vegas market, you can request a free home value estimate here: Get a Free Home Value Estimate