Although you rate lock may expire, you can check with your lender to see how much the rates have changes from your locked rate, it may not change at all.
Your agent can also ask the sellers agent on the home you are buying if they can grant an extension.
None of this is unusual, but can be frustrating. Starting from the beginning finding a new buyer can be more frustrating and could also cost you if the new buyer is for less money. Good luck, I hope it all works out for you.
I would give the buyer the extension. The bank is asking for more additional documents. It does happen, if you feel the buyer is committed to buying your home, than stick with them. Having to start all over finding another buyer, could even further delay the process. Have your Real Estate Agent, talk to the buyer's agent. Maybe he or she can get you some additional information from the lender.
Visit me on the web at; http://www.WeLoveOurRealtor.com
Iâ€™ll Sell Your Home in 29 days or Lessâ€¦â€¦â€¦ OR Iâ€™LL SELL IT FOR FREE!!!!!!