So we started house hunting back in September when rates were low, finally got an accepted offer in October. Our closing date is in December, but now our lender says we’re on the edge of not qualifying because rates have shot up to almost 7%. 
The monthly payment with this new rate is about $800 more than the original! I’m not super upset, but I’m worried about the risk if this falls through. If it does, we’ll just stick it out in our current home with a 3% mortgage. Just wondering what happens if we can’t qualify… any advice? Thanks!
Your loan officer should have locked you back in October for a 60-day lock. They probably didn’t because they thought rates might drop. But now with them rising, you’re kinda in a tight spot.
You don’t owe anyone anything. Agents don’t get paid until a deal closes. It sucks but these things happen. You could offer to cover the costs for the photos they took, but that’s about it.
Do you have a home sale contingency? If not, are you just hoping the lender denies you? You might want to consider letting the seller keep the earnest money since they took a risk on you.
Why not keep your first house and rent it out? You have a low rate, and it might cover the new payment. Rates will likely come down again too!
If you’re going to back out, do it fast while you still can. Don’t leave anyone hanging.
This happens all the time, don’t stress too much about the sellers. They’ll find someone else.