Loan Closing Guarantee

First World Mortgage Corporation (“First World Mortgage”) hereby guarantees to ________________________(“Seller”)  that the proposed mortgage loan from First World Mortgage to Borrower will close or First World Mortgage will pay Seller cash in the amount of $5,000.00 (“Guarantee”).

 

Eligibility

To be eligible for this Guarantee:

1. the Seller must be the record owner and seller of the real property described in the purchase contract between Borrower and Seller (the “Property”);
2. the Borrower has completed a new residential first-lien loan application and has submitted the application directly to First World Mortgage for the purpose of obtaining a mortgage loan from First World Mortgage;
3. the Borrower and Seller have provided a fully-executed purchase contract (“Contract”) which must include all pages, addenda, and required signatures;
4. the Borrower, Seller, and an authorized First World Mortgage representative have signed this Guarantee;
5. the Borrower has submitted all necessary pre-approval documents requested by First World Mortgage to determine Borrower’s qualification for a loan, and has received (i) a Pre-Approval letter from First World Mortgage prior to entering into the Contract; and (ii) a Certificate of Loan Guarantee from First World Mortgage; (iii) must also adhere to the eligibility and conditions of the Pre-Approval Guarantee
6. all information provided by the Borrower, including information on the loan application, must be accurate and must not contain fraudulent information or material misrepresentations;
7. the actual appraised value of the Property must be equal to or greater than the purchase price in the Contract and must be satisfactory to First World Mortgage;
8. the Borrower must satisfy all loan and loan program requirements and conditions at least seven (7) days prior to the anticipated closing date;
9. if the loan product is intended to be an FHA or VA loan, the Property must qualify for FHA/VA financing; and
10. First World Mortgage must be able to obtain, in its sole discretion, satisfactory title insurance coverage showing Borrower as the insured owner of the Property and insuring the loan and not containing any exceptions, exclusions or conditions that are not acceptable to First World Mortgage.

 

Conditions

First World Mortgage will perform this Guarantee only if each of the following circumstances occurs:

1. the loan closing does not take place after First World Mortgage has determined that the Borrower satisfies its internal underwriting requirements to be deemed a qualified borrower and a Pre-Approval Letter has been provided to the Borrower by First World Mortgage; and
2. the loan closing does not occur solely due to error on the part of First World Mortgage.

 

Cancellation Of Guarantee

Any of the following will cancel the Guarantee:

1. changes in the loan amount, product, or terms that unnecessarily extend the anticipated closing date;
2. failure by either party to meet Contract terms and requirements including delays caused by or related to Seller;
3. delays due to force majeure events including weather, natural disaster, or other public declaration of emergency;
4. delays caused by third parties other than First World Mortgage’s required service providers;
5. delays due to Borrower’s failure to respond to First World Mortgage’s requests within two (2) business days;
6. failure to make a claim under this Guarantee within 30 days of meeting its Conditions;
7. any actions taken by the Borrower that materially change the Borrower’s creditworthiness or financial situation;
8. any actions that make payment under the Guarantee legally prohibited, including bankruptcy, regulatory changes, and the like;
9. First World Mortgage declines the loan after the loan has been pre-approved due to actions by the Borrower;
10. the Borrower voluntarily withdraws the loan application;
11. the Seller cancels the Contract;
12. after expiration of the closing date set forth in the purchase contract, the Borrower has the right to receive and the Seller has the obligation to refund the Borrower’s earnest money.

 

Exclusions

The Guarantee shall not apply in the following mortgage loan transactions:

1.   the mortgage loan is a refinance loan;
2.  the mortgage loan requires any subordination of a prior loan or lien;
3. a loan applicant who has disputed credit accounts;
4. a loan involving property requiring repairs or re-inspection; or
5. a loan involving property that is new construction, a co-op, a bank-owned property, or a home purchased through a short sale.

 

Miscellaneous

First World Mortgage reserves the right to amend, terminate, or withdraw this $5,000 Loan Closing Guarantee at any time without prior notice.