Mortgage lender canceled our LOAN before escrow !!!!

[miatime]

We were approved for a loan at 20% down. 2 weeks before closing escrow the Bank of America office called and told us we needed 40% down which we agreed. We told them if the loan officer who is in charge of our loan can call us back and let us know why the amount went up to 60K down / 90K loan...
We got a call back and to which they told us the loan was closed and the 60k down was no longer valid. The loan was good until Aug 4'th how could they cancel the loan without giving us a chance to remedy the situation? Is this legal?

 

[USLoanAuditors]

When you apply for a mortgage loan and your loan officer contacts a bank they are given a certain date to have all paperwork done. They are given the terms and interest rate. If the loan officer deems prudent he/she "locks" in the loan, meaning that they agree on the interest rate and it will neither go up or go down while all the paperwork is being done. There are times when the loan officer is not on top of things and time passes and they miss the date agreed upon. Then it is back to square one. The bank no longer has the responsibility of honoring the loan. If the bank cancelled before the time specified then your loan officer should have an explanation.

 

[jharris352]

Find another lender. Asking for a 40% downpayment is ridiculous.