Can the buyer's mortgage bank be negligent in their lack of knowledge and providing wrong info?I am purchasing a home through a purchase and rehab 203k loan. Purchase price 150k and bank appraised value 175k. I am currently being charged a $300 fee plus $100 per diem for an extension with projected total equaling $2900. Is my mortgage bank liable for the extension fee for what I feel was poor knowledge of the loan product, providing me with incorrect information, and tardiness in relaying pertinent information/ requirements to me? To begin, I obtained work estimates for 25k and submitted them to the bank. That is when the mortgage lender told me since the utilities were turned off, they required 15% of renovation budget to hold as reserve funds ($3,750). This put the reno budget budget at 28,750 and the total amount to be financed at 178,750. At this point I was told that anything over 175k, I would have to come up with as out of pocket cash funds at closing. I did not have this additional money to provide at closing. So I had to go back multiple times to several contractors to get them to shave down the estimates and provide new estimates to get me down to 21,739 estimate + 15% reserve funds = 25k. I finally succeeded only to discover by chance from another mortgage bank that FHA rules allowed me to borrow up to 110% of the appraised value all along. There was never a need to waste time contacting contractors. There were also issues from the appraisal report that she received weeks ago, that required several miscellaneous and specific things to be addressed and included on my estimates. She didn't tell me about that until later. That caused another round of me having to go back out to the contractors for revised estimates. Can I recover the cost of the extension fees from the mortgage bank?July 03 2014 - Brockton00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.