Canceling the deal
You might be allowed, from the contractual point of view, to back out of the deal if you can’t obtain the loan or you discover unsolvable problems during the home inspection. But if your reasons to reconsider cannot be associated with a contractual clause, then you will probably lose your deposit.
Borrowing more than you can manage
Sure, you really like the house and need the money to make it yours but taking on a payment that’s much higher than you could afford might not be the wisest decision. It’s true that in time, payments will become more manageable as their earnings increase, but, we are living in uncertain times, even more so now because of the coronavirus pandemic, which means your income might suffer at some point and your ability to make such high payments will not be the same.
