“He said that we should be getting an extension of the banks approval in writing shortly.”

If you had already locked your loan find out if this is going to change your lock. Rates have gone up in the last few weeks. If it is going to change your “lock” compare rates and find out how long you have to close and preserve your “lock” if it is indeed lower than today’s rate. My guess is that nobody locked the rate for you … We are talking about a pretty significant difference in your mortgage over several years, depending on the facts.