You must first find out if your lender/broker locked-in your loan rate and for how long was the lock in (10,15,30 days)
When you say contract I assume that you mean that you signed the closing documents, so if that is the case most likely then the rate was already locked in because it is required that the rate be locked prior to closing and in that case there could be no further changes to your loan unless your lock-in rate expired during the 3 day recission period and then that would give the lender/broker and opportunity to change the rate and or costs to cover any possible losses to his yield spread (YSP) from any changes in your old rate. It's a little complicate however any responsible (professional lender/broker) should have made you aware of these possible changes. Any changes which adversely affect your rate or costs most be re-disclosed prior to closing and failure to do so could be costly to them.
There is every possibility that the lenders/loan officer gave you single family rates instead of rates for townhomes/Condo. Per chance did you tell the lenders you live in a Single Family?
The Lenders should have spotted the error in the Title Report itself or latest in the Appraisal Report.
Speak to the Lenders and try to sort out the issue. Worst come worst you always have the option to get a new refinance application rolling.
If you have all of your financial information together, like I'm sure you have, the larger bank can qualify you in 24-48hrs. Start this today & by Monday you'll know if Loan officer #1 is trying to pull the wool over your eyes.
I'm glad you came onto Trulia today to ask an expert & I hope between my answers and the others we'll have saved you money & headache!