Sorry to hear of your problems.

There are a couple of issues that you should be aware:
First, contrary to what you might see in the media, underwriting standards are tightening. It is not uncommon for a buyer that is qualified at one point, with NO change in their financial status, to become unqualified.

Second, it is the listing agent's job to keep track of the buyer's financing. As an example, it is legal for you, the seller, to require that the buyer "co-app" or apply to another lending institution as part of the offer acceptance. Having the buyer applying for loans from more than one lender, particularly a lender that the listing agent knows well, can really be a big help and perhaps avoid problems like yours.

Third, it is not uncommon, even in the "normal" times of the recent past, to simply have lenders make mistakes. The Calif. Association of Realtors conducted a survey that showed that about 37% of the time escrows fail to close on time, and 70% of the time it's because the lender made a mistake. So it is widely known by top agents that having a firm handle on the buyer's financing is key.

You should make sure that you ask your Realtor the questions you asked us. I am concerned that the sale took so long.

The key question I would ask your Realtor is this:
SInce our home hit the market, how many homes, like ours , have:
Come on the market
Lowered their price
Entered Escrow
Sold
Expired.

The proof will be in the numbers.

I did not get up on the wrong side, I was seriously interested in what questions Bryan thought should be asked. I am always learning and used this as an opportunity. Here in NY we do not handle financing or contracts, and in my area most sales are all cash. Thanks for your answer Bryan.

JR
Here are some basic questions I am sure your in house trainer can help you with.
1. have you run buyers credit?
2.Have they actually submitted an application?
3. Are the approved through DU?
4. Are there ANY conditions we should know about NOW?
5.Do you for see any issue that will keep this loan from closing?
6.Are you an banker or broker?
7.What is their debt to income?
8.Is this deal going to close?
9.What is you direct #/Cell
10.Who is your supervisor/processor?
11.When do you expect a clear to close?
12.When you get all the info in file how long to underwrite. How long to get clear to close
13.What is a realistic time frame?
And many more. We could always trust the piece of paper given to us, and the word of the person who works for the buyer, or we could do our due dillagence and not only earn our money, but represent our client. I hope this helps JR.
Bryan

Boy J R, Did you get up on the wrong side? i gave Bryan a thumbs up for probably telling it like it is. The type of situation that the OP ran into is exactly why I negotiated for, and got, 3 days after closing to vacate.

Bryan, why don't you give us a list of the "hard questions" you would ask in order to avoid this situation?

We recently had a buyer walk away on the morning of the closing. That's right, walk away. They had put 20% down but negotiated most of that back. Most sellers think if something happens they automatically get to keep the deposit, but it doesn't always work that way.

Unfortunately this happens. More than likely, without knowing all the facts, I would bet that the listing agent did not ask the right questions of the loan officer. More times than not, the listing agent takes the word of the buyers agent or even worse just looks at the pre-qual and assures you all is well. They should call loan officer and ask the hard questions, and a pro knows the answers they should get. Unfortunately so many agents are desperate for deals they roll the dice, with your life, in hopes of getting a check. Somebody knew well before closing this wouldn't fly. And again a good listing agent would have followed up and been honest with you and looked at the whole picture realistically and advised you as such. But again, they are so desperate for a deal in some cases they dont want to hear the bad news and share the truth with you. If 51% DTI means debt to income than this deal was dead well before it got signed. Someone should have told you that. (probably listing agent, if they asked all the right questions of the loan officer)As far as being in underwriting 12 days goes, my experience, 20 years and hundreds of happy customers says anything in underwriting more than 48 hours is getting denied. Somebody knew and was hoping to "wish it away". Again I feel for you and it not only frustrates me that this happend but infuriates me that we still have a lack of professionalism in my business. Send me a link of your Realtor.com listing and i will see if i have any buyers that I can send your way. Best of luck!
Bryan