The One Detail That Almost Cost a Buyer Her Home

Every real estate transaction comes with its own challenges, but this recent scenario was a powerful reminder of how important it is to discloseeverythingduring the loan approval process.

We were working with a buyer whose approval was already tight. Her mother had graciously agreed to co-sign, and even then, the numbers were right on the edge of qualifying. Still, we thought everything was in good shape—until the day of closing.

The Surprise HOA Reveal

As we sat down at the signing table, the lender handed our buyer a form asking her to confirm she had no additional HOA obligations. Without hesitation, she said, “Oh no, yeah—I have an HOA in California.”

This was the first time she'd mentioned it.

That monthly HOA fee immediately changed her debt-to-income ratio, and suddenly her entire loan approval was in jeopardy. The lender had to scramble—literally at the last minute—to recalculate everything and make sure she still qualified.

By some miracle, she made it. But just barely. She qualified within about $50.

Why Full Disclosure Matters

This situation could have ended very differently.

Any recurring monthly payment—HOA fees, car loans, personal loans, child support, installment agreements, even certain subscriptions—can impact your debt-to-income ratio. If it’s not disclosed upfront, it can:

• Delay closing

• Jeopardize loan approval

• Trigger a denial

• Require new underwriting

• Create unnecessary stress for everyone involved

Your lender isn’t asking to judge you—they’re asking to protect the approval of your loan.

Final Thoughts

Homebuying already comes with enough moving parts. The best thing you can do is disclose everything—every debt, fee, obligation, or financial responsibility you have. Surprises at the signing table are the last thing you want.

If you have questions about what counts toward your debt-to-income ratio or how to prepare for the loan process, reach out anytime. I’m here to help make sure your approval stays solid from start to finish.