I applied for a mortgage loan through Bank of America for the purchase of a home. I was approved and the rate was locked. In order to close the escrow, I had to liquidate large amount of investment in a brokerage account. One day before the settlement date, I was instructed to wire the funds to the escrow company and the arrangement was being made to proceed. Then the bank informed me that the loan is not being approved because they determined that I had a second home and I would have to pay a higher rate. I had a second home but it was going to be converted into an investment property and the newly purchased home would become a second home. However, this was all known by the bank from the beginning of the process as everything was disclosed on the application. As a result, I could n't proceed with the purchase and suffered a significant damage. 
