Money Down for Primary

[Daniel Sabato]

Hello Everyone! Looking for some input in regard to money down on my primary. With a crazy competitive market most offers without 20% aren’t even being reviewed. My pre-approval is almost double the amount of the homes I’m looking to buy (I’m pre approved for $800K, I’m looking at home around 450) , so I’m pretty frustrated but it is what it is. I don’t hold much cash generally because I buy rentals. Anyway, that’s life, but my question is this: My lender said we can write the offer for 20%. She’s considering all cash, assets, 401K, anything liquid that can be used for that 20%. If we really wanted to, yes I have the 20%. It isn’t like I have 30K in assets and am saying I’ll put down 90, that’s not the case at all. But What are the risks associated with this? If the offer is accepted, can the seller say no way if I decide to change to 10% down? Is the money in escrow gone? I’m in NJ if that helps. I basically am just trying to cover all my bases & be very cautious about following the law. Thank you!