Can I Get Out Of My Mortgage Contract For A $215,000 House Before We Reach Closing?

I'm 24 year old male trying to buy a house. I have about $120,000 left to me by my uncle who died when I was 9 years old, and I work 40 hours a week making $20.00 an hour and after taxes I bring home just over $2,400 a month.

I made an offer of $215,000 on a nice recently renovated house with 3 beds and 2 bath, and had planned to make a roughly $83,000 down payment and get a loan for the rest of the money. Months ago I got a pre approval for only $125,000 because I wasn't working full-time at that point due to things going on in my personal life, but I began working full-time again for two months and my pre approval up to $200,000. The offer I made was above that of course but the $200,000 pre approval was because I was originally only going to put $50,000 down, so with extra $30,000 down I figured I could afford it. Especially since my best friend is planning on living with me for a awhile to get out of his parents house and will be paying me rent.

I made the offer and it got accepted, we were going through the process of getting the mortgage and I had to put down a deposit. But this particular house required (I believe) a 10% deposit... which totalled to $10,750. I then had to sign a bunch electronic paperwork on order to continue the process and get my mortgage and loan for $132,000, and monthly payment of $1,550 including property taxes and insurance. At this point over a month had gone by since I got my $200,000 pre approval, so I had to submit more paystubs from the month prior. I then get a phonecall from the loan guy where he tells me, according to my payouts from the last month, I haven't been working 40 hours week like we discussed.

My previous 4 paystubs were for a week 39.75 hours, a week 38 hours becuse it happened I left 2 hours early one day... the day I went to tour the house I buying, 31.25 hours in a week because I got sick with food poisoning on a Friday but forgot to use sick time, because we have to use our sick time on Monday the next week before we get paid tuseday. However, unbeknownst to me I couldn't use it Moday that specific week because that following Monday was labor day, so the hours were already calculated the week prior on Friday. The 4th week I only worked 22 hours because I had 8 hours of paid time off for labor day, and 8 hours of sick time because my illness lasted all the way from Friday the previous week to Tuseday the following week, totaling 38 hours that week. All of which means I'm considered to have a variable income.

It was really unfortunate timing that I got sick because otherwise I would have gotten full 40 hour weeks because of how busy we were. But then I was told I did not qualify for the loan if I didn't have anyone to Co Sign... which I didn't. But I was told we'll in that case let me look into other options and mess with some numbers to see if you qualify. I fully expected I wouldn't, but apparently I do if the mortgage is 30 year term and a monthly payment over $1,700 a month.

I'm worried I can't afford the monthly payment on top of utilities, groceries and needing to get my own health insurance through my work soon because I'm still on my parents. But I'm now being told by the loan guy I can't back out because I signed a contract, despite the fact I haven't even had the bank approve my loan yet. I feel like I should be able to back out still because there I literally could have gotten to this point of the process I hadn't signed the contract and I don't feel I could realistically afford this. I from everything I've been reading I should be able to get out of it but I will lose my $10,750 deposit, which would suck but it would be better that taking a loan and mortgage I can't afford. I talked to my realtor and he said it might be possible to back out if I the mortgage company buys the house and he lists it for them, and I also give up my deposit. The last thing he told me is he would talk to the loan and mortgage guy to see if that would be possible.

Should it be possible for me to get out of this if I give up my deposit? If I have to buy this this house it could mess up my whole future if I can't make the payments. The loan guy is looking at extending the mortgage to 40 years if that is possible, and I have the rest of the money my uncle left me to make a bigger down payment to lower the monthly payment but I would really rather not do that.

Location: New York