As your lender works to verify the information in your loan application, you may receive revised Loan Estimates. These new Loan Estimates indicate that something important has changed about the loan and its costs.
Buying a home is a big deal, and there are a lot of things to think about, including how much you can afford to put down as a down payment. But what happens if your financial situation changes between the time you make an offer on a home and the time you close on the loan? Can you change your mortgage down payment after your offer has been accepted?
The answer is: it depends
Here are some factors to consider:
- How much you want to change your down payment: If you only want to make a small change, you may be able to do so without any problems. However, if you want to make a significant change, it could affect your loan eligibility and the sale of the home.
- Your lender’s policies: Some lenders may be more flexible than others when it comes to changing your down payment. It’s important to talk to your lender about their policies and what options you have.
- The terms of your contract: Your contract with the seller will likely specify the amount of your down payment. If you want to change this amount, you will need to get the seller’s approval.
Here are some things to keep in mind if you are thinking about changing your mortgage down payment:
- It could delay your closing: Changing your down payment could require your lender to re-underwrite your loan, which could delay your closing date.
- It could affect your interest rate: If you are putting down less money, your interest rate may be higher.
- You could lose your earnest money: If you are unable to close on the loan because you cannot come up with the down payment, you could lose your earnest money.
The following advice will help you avoid having to adjust your mortgage down payment:
- Be realistic about your budget: Before you start looking for a home, make sure you know how much you can afford to spend on a down payment.
- Talk to your lender early on: Get pre-approved for a mortgage before you start looking for a home. This will give you a better idea of how much you can afford to borrow.
- Save up as much money as you can: The more money you can put down, the better. This will reduce your monthly payments and give you more equity in your home.
If you are considering changing your mortgage down payment, it is important to talk to your lender and real estate agent first. They can help you understand the risks and benefits of making a change and can help you make the best decision for your situation.
Here are some additional resources that you may find helpful:
- U.S. News & World Report: Can You Change Your Mortgage Down Payment After Your Offer Has Been Accepted?
- Chase Home Lending: Changing Your Down Payment After You’ve Made an Offer
- Bank of America: Can You Change Your Down Payment After You’ve Made an Offer?
Best regards,
[Your Name]
P.S. I am not a financial advisor, and this information should not be considered financial advice. Please consult with a qualified financial advisor before making any decisions about your mortgage.
What to do now
Make sure you don’t miss any crucial communications from your lender, such as a revised loan estimate, by regularly checking your mail and email.
Common reasons you may receive a revised Loan Estimate include:
- The home was appraised at less than the sales price.
- Your overtime, bonus, or other irregular income could not be verified by your lender.
- You made the decision to alter your down payment amount or to obtain a different type of loan.
- After receiving the initial Loan Estimate from the lender, you asked for a rate lock.
Switching Mortgage Lenders Before Closing May COST You
FAQ
Can I change the loan amount after approval?
Can I increase down payment before closing?
Can a buyer change financing after offer accepted?
Are revisions to a loan estimate allowed?
Do Loan terms change before closing?
The commitment letter will outline payment terms, but there will also be other disclosure forms. Terms can change before closing under certain circumstances. Lenders cannot control all closing costs. After you’ve received the loan details and disclosure forms, here are the circumstances under which fees may change—and why.
Can my interest rate change before closing?
Unless your interest rate is locked when you receive your Loan Estimate, it can change before closing. Your rate can change even if it has been locked, too. For instance, if a borrower’s credit score has fallen since applying, or if they don’t end up closing during the specified rate-lock timeframe, the rate can change.
Can terms and fees change before closing?
Terms can change before closing under certain circumstances. Lenders cannot control all closing costs. After you’ve received the loan details and disclosure forms, here are the circumstances under which fees may change—and why. Your interest rate could change. Interest rates fluctuate daily.
What happens if my mortgage payment changes?
If your mortgage payment can change (for example, an adjustable-rate mortgage), there will be a calculation for what your maximum payment can be at each change based on interest rate caps. Estimated total monthly payment: This is the amount you’ll pay each month, including the principal, interest, mortgage insurance and escrow amount.