Back out on a process of purchasing a brand new house?

Question

3 months ago (April) My wife and I did a house hunting. At first we were looking at used house for a reasonable price, but it seems the last builder we ran into gave us a good offer (paying for down payment, closing cost, buy down if i go thru their lender) for a 1800sqft/4bedroom house for 235K. We signed on the Purchase Agreement Contract, did the loan process, i'm not sure if the loan is approve yet. but closing cost is 3 months from now (Oct), but i was informed by the loan officer that i have to signed the final loan next month (August or Sept). I was just curious to see if housing have fallen. and I found a 2000sqft/3bedroom in the same community for 179K and was only built 2005. I am tempted to back out but was wondering if possible. I know I am going to lose our earnest deposit (1500). What else could be bad by backing out? Is it safe? I visited the site and it seems they haven't started on building the house that was supposed to start the construction last month (June).

Answer 1

Normally just lose your deposit.   You can also tell them why you are walking away- and they might work with you to get you a better price.

Answer 2

When a buyer for my Mom's house backed out, they refused to give up their deposit. Our Lawyer said it was not worth going after. Of course the people who did this to us are going to h e double toothpicks.