LOAN CLOSING GUARANTEE
Primary Residential Mortgage, Inc., (“PRMI”) hereby guarantees to ______________________ (“Borrower”) and ________________________(“Seller”) that the proposed mortgage loan from PRMI to Borrower will close or PRMI will reimburse the Borrower their appraisal fee, property inspection fee, and/or forfeited earnest money (up to $2500), and pay Seller cash in the amount of $__2,500___ (“Guarantee”).
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 PRMI Office 2345_ for the purpose of obtaining a mortgage loan from PRMI Office _2345;
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 PRMI representative have signed this Guarantee;
5. the Borrower has submitted all necessary pre-approval documents requested by PRMI office 2345 to determine Borrower’s qualification for a loan, and has received (i) a Pre-Approval letter from PRMI Office _2345____ prior to entering into the Contract; and (ii) a Certificate of Loan Guarantee from PRMI Office _2345______;
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 PRMI Office 2345____;
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. the Property must qualify for financing; and
10. PRMI Office 2345___ 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 PRMI Office _2345__.
PRMI Office __2345_ will perform this Guarantee only if each of the following circumstances occur:
1. the loan closing does not take place after PRMI Office _2345____ 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 PRMI Office _2345__; and
2. the loan closing does not occur solely due to error on the part of PRMI Office _2345__.
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 PRMI Office _2345__’s required service providers;
5. delays due to Borrower’s failure to respond to PRMI Office _2345__’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. PRMI Office __2345______ 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.
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 which is new construction, a co-op, a bank-owned property, or a home purchased through a short sale.
This Guarantee is governed by the laws of Illinois without regard to conflict of laws principles.
PRMI Office _2345_____ reserves the right to amend, terminate, or withdraw this Loan Closing Guarantee at any time without prior notice.
DATED this day ___ of ______________ 20___.
PRIMARY RESIDENTIAL MORTGAGE, INC.