Context: I am currently under contract for a house. I did the inspection and the house was appraised. My lender sent me a loan estimate and I locked in a interest rate. We have been waiting for them to fully approve the loan so that we can get a closing date (They have been delaying this by making various excuses for two weeks).
Problem: Now, the lender has come back to me saying that their compliance department refuses to sign off on the loan because there is a converted garage with no CO from the previous owner. The person told me she can get the compliance department to sign off on the loan quickly if I take a different “package” which has an interest rate .2% higher than what was originally agreed.
I have no idea if this is actually legit or if the lender is just trying to pressure me into a higher interest rate last minute. They knew about the converted garage with no CO well before the rate was locked in and the estimate was sent. Any advice would be helpful. Thank you.