Is it a breach of sale contract if you included a mortgage contingent but then decided to close with all cash?

Update: My wife and I are in the process of buying our first home in the US. We included an appraisal and mortgage contingency in the contract thinking we would go 50% down and 50% loan. However, after consulting with the lender, the pre-approval letter had an error and the most they can lend is 20%. If you decide to... show more My wife and I are in the process of buying our first home in the US. We included an appraisal and mortgage contingency in the contract thinking we would go 50% down and 50% loan.

However, after consulting with the lender, the pre-approval letter had an error and the most they can lend is 20%.

If you decide to switch from mortgage to all cash in the middle of the process, would this be a breach of the contract and allow the seller to keep my earnest deposit if the deal falls apart?
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