When is it okay to walk away during the home-buying process?

You can usually walk away without losing your earnest money when an active contingency lets you – for example, if the inspection uncovers serious problems, the appraisal comes in too low, or your financing falls through. Outside those protections, backing out generally means forfeiting your deposit, so the contingencies you negotiated define your safe exits. Beyond the contract, it's reasonable to walk if the numbers stop making sense: a reassessed property tax bill, a surprise repair, or rising rates that blow past your budget. Don't let sunk costs like the inspection fee or your emotional investment push you into a purchase you can't comfortably afford. A home you regret is far more expensive than a lost deposit – know your true affordability ceiling before you're under pressure to decide.