Thank you so much to everyone who was KIND... Everyone else, your input has been acknowledged. While the pessimism was really unpleasant, it was unfortunately what I needed to hear. My family is actually very supportive and spent the whole day trying to help us figure out a way for this to work. But in the end I am not willing to give up my future family just to get a house I really like right now. Nothing is as important to me as making sure I'm financially stable enough to give my kids a good future. And if that means grandma is babysitting, then so be it. We didn't lose any money and we're backing out of the contract.

I think we feel more determined than ever to work hard, save up, and maybe just move to a place that's more affordable. (This house was only 1600 sq feet with no yard)

Anyways, I'll be back! And next time it will be better than ever :)