Closing Guarantee Terms, Conditions and Restrictions
Last Updated: Nov. 30, 2021
Lendova Corporation (dba Texas Trust Home Loans) (“The Company”) guarantees that it will close your mortgage on time, subject to the following terms, conditions and restrictions
If the Company fails to close your loan by the original closing date printed on the purchase & sale agreement, and you have met the eligibility requirements below, the Company will pay $500 per day up to a maximum of $5,000. The Company reserves the right to apply the claim towards the buyer’s closing cost in lieu of cash payment subject to state or federal laws and regulations.
ALL CLAIMS FOR THIS GUARANTEE MUST BE FILED WITH THE COMPANY AT LEAST 1 BUSINESS DAY PRIOR TO THE CLOSING DATE
Eligibility Requirements – Buyer
Purchase Loans You must apply for a Purchase loan with the Company.
Complete Loan Application & Disclosures You must complete a home loan application with the Company and sign disclosures
Loan Application Information You must provide, upload and satisfy the loan application information with supporting documents such as Income, Asset, and Credit information
Purchase Agreement The Company must receive the fully executed (signed by all parties) home purchase & sale agreement with all addenda within 2 calendar days of mutual acceptance by the you and the seller
Verified Buyer Approval You must obtain a valid Verified Buyer Approval Letter from the Company. The Company guarantees that it will close the mortgage in accordance to the loan terms describes in the Verified Buyer Approval letter within 21 days so long as your financial situation has not materially changed
Arm's Length Transactions Only You must not be related nor affiliated with the seller and you must be acting independently of the seller
Buyer Response Time The Company must receive information and documentation in complete and satisfactory manner from you within 2 calendar days of the Company’s request
Buyer Obligations You must perform your obligations at closing, such as making a down payment by the closing date from financial sources disclosed to the Company.
Buyer or Seller Delays or Breach of Contract The Company’s closing guarantee is voided by unreasonable buyer or seller delays or either party’s breach of contract of the purchase & sale agreement
Force Majeure The Company’s closing guarantee is voided if closing is delayed due to force majeure events, such as natural disasters, terrorism, pandemic, or national emergencies
Eligibility Requirements – Subject Property
Eligible Property The subject property must be a single-family residence eligible for conventional conforming, FHA or VA mortgages from the Company. Short-sales, bank owned properties, properties under construction, and properties that do not have certification of occupancy at the time purchase & sale agreement is executed are ineligible for the Company’s closing guarantee.
Clean Title The Company must receive a clean title report (free from unacceptable exceptions and encumbrances) at least 5 business days prior to the closing date.
Appraisal Report The Company must receive an acceptable appraisal report from a state certified appraiser no later than 5 business prior to closing. If you want to close the loan before the appraisal report has been completed, you must waive the right to receive an appraisal or other valuation 3 days before closing of the transaction and after understanding and accepting the risks associated therewith.
Inspections Report At least 5 business days prior to closing, you must provide the Company with an inspection report reasonably satisfactory to the Company, free from defects affecting the value, safety and habitability of the property. The inspection must be completed by a licensed home inspector within 45 days of the scheduled closing date.
Homeowner’s Association If the property is part of a homeowner’s association (HOA), the Company must receive all required HOA documents, including but not limited to, property insurance documents, at least 5 business days prior to the closing date.
This guarantee does not apply if:
Your loan is withdrawn or denied.
The subject property is a townhome, row house or condominium.
The subject property is under construction or renovations and requires more than one appraisal report
Delays are caused by the appraisal process (including delays outside of the Company’s control, valuation issues, disputes / rebuttals, repairs, notations, or re-inspection requirements)
Delays are caused by the closing process not directly linked to the Company, such as a seller delaying in scheduling an appraisal inspection
Your credit or financial situation has materially changed, or you have failed to disclose material information affecting credit, income, assets, outstanding debts or liabilities
The Company reserves the right to modify the terms of the Closing Guarantee at any time without prior notice. But, when it does so, the terms will be modified only for buyers who entered in the purchase & sale agreement after the date the offer terms were modified
If any provision of this Guarantee is held by a court of competent jurisdiction to be contrary to law, the provision will be deemed void and the remaining provisions of this Guarantee will remain in effect.
Your local Texas Lender
4100 Spring Valley Rd. Suite 770 Dallas, Texas 75244