Motorcycle dealership wants to resign at higher APR

What is the name of your state (only U.S. law)? Minnesota

My mother went into the dealer to buy a motorcycle, she had her credit ran, was approved, signed all documents (which included interest rate, monthly payments, total payments, total interest, term length ect...) On Monday we got a call saying that they couldn't do the loan at the original interest rate and we needed to resign at a higher rate. Is this legal? The original contract she signed has no "pending final approval" clause. The document is "retail installment contract consumer credit document Minnesota"

The credit application is not considered "complete" till it is approved by the creditor. The dealer is not the creditor, they are an agent for them. Your mother can resign a new contract or return the motorcycle, it's her choice.

I'm still a little confused...this wasn't the credit application. She had filled out that previous to this contract, this contract was the final one she would have to sign, they told us we did have approval from honda. So I guess it was approved by the creditor, she signed papers and then they denied the loan to the dealer. Isn't this the dealers fault and they now have to take possession of the loan?

So, if we do need to take it back do we need to get any sort of documentation that the bike was returned? If they don't have an approved loan, we never actual had any financial obligation to pay for it....right? Kinda like a loaner.

More like a rental if you take it back. Depending on the miles put on the bike since your mother had possession, she could be on the hook for charges for the mileage.