I am in the process of buying my second home and taking out a home equity loan to use as my down payment. I will take out 80% to pay off the remainder of my first houses mortgage and keep it as an investment property then use around 125k as a down payment on my new home of 350k. But my offer I put in said cash at closing is 200k...can this number change? My offer was just accepted so we are very early in the process and I want to use some funds for renovations. I have the full amount of 350k for the loan I just want to change the cash at closing(down payment). I am sure this has happened many times and honestly as long as the seller knows I am approved for the full loan it should be fine right? In Colorado for reference.
This is a material change in the offer and may result in the seller backing out. Your $350K approval may also have been based on a $200K down payment, so that may mean your lender backs out.
The first thing I would do is ask you lender if you can do $125K down, if they agree get the loan approval modified and then see if the seller is willing to change terms. The current housing market may mean that they have a better offer, so be prepared to have it rejected. Also changing the terms of your loan may send it back through underwriting, you may have to ask for an extension.