Shopping for a mortgage can be tricky. You need to find one that has low rates, a down payment you can afford, and a term length you’re comfortable with. You also want to find a lender that has good customer service, whether you apply for your mortgage in person, online or over the phone. All of these factors can seem overwhelming and make you feel uncertain – that’s why guarantees are a good thing. With a guarantee, you know what you’re going to get. With that thought in mind, lets take a look at some different lenders and the guarantees they offer to their borrowers.
Embrace Home Loans – Guaranteed On-Time Closing
The closing date on your loan is important. If closing is delayed, it can cause a whole series of problems, from scheduling issues with the moving company all the way up to the sellers backing out. That’s why you don’t want to have any issues with your closing date. Embrace Home Loans has Guaranteed On-Time Closing – if your loan with them doesn’t close on time due to an issue on their end, they’ll pay you $2,500. This guarantee is for their Conventional, VA, and FHA loan programs, which gives you a lot of options to have this guarantee. Embrace states that their loans always close on time (or sometimes even early!), so there’s no reason to expect your closing date will be delayed, but just in case, it’s nice to know you would be compensated for the extra time. Either you close on time or early, or you get money – talk about a win-win situation!
PennyMac – Better Rate Guarantee and Close On Time Guarantee
Two guarantees for twice the security and peace of mind! PennyMac has a Better Rate Guarantee and a Close On Time Guarantee for their borrowers. Better Rate Guarantees are a great incentive to shop around and get the lowest rate possible (the low rate itself should be a good incentive, but having a Better Rate Guarantee is a nice bonus). PennyMac’s Better Rate Guarantee says that if they can’t match or beat a competitor’s rate (or match their rate and beat their lender fees) and you don’t close your loan with them, then they’ll send you a $100 gift card. There are some conditions attached – the competitor’s rate can’t have any borrower or lender paid points (which are discount points that lower the rate), nor can it have any employee discounts, special incentives or limited time offers. You’ll also have to provide a Closing Cost Worksheet or Loan Estimate, outlining the details of the loan and the rate, as well as an executed purchase contract.
PennyMac’s Close On Time Guarantee offers a $500 Visa gift card to those whose loan did not close on or prior to the scheduled closing date. Again, there are some conditions attached – the delay in closing has to be due to an issue on PennyMac’s end, and can’t be caused by a third party or a situation beyond PennyMac’s control. The closing date also has to be a minimum of 30 days from the application date (for conventional loans – FHA loans have a minimum of 45 days), and you have to complete and submit the application to PennyMac within less than five days after your purchase contract was signed. Still, if you meet all these conditions, both of PennyMac’s guarantees can help you rest easy knowing that even if things don’t go as planned, there will be a silver lining.
Triumph Bank – Closing Date Guarantee
Getting a mortgage means starting mortgage payments. However, you still want a mortgage to get in to your home, and you want to make sure you get it on your desired closing date. Triumph Bank is another lender that offers a Closing Date Guarantee, and if your loan doesn’t close on or before the expected closing date stated on their Closing Date Guarantee Certificate, they will pay $1,000 towards your first mortgage payment. That way, either your mortgage starts when you want it to, or you get credit towards your first payment – and either way, you start off right! The terms and conditions on this guarantee say that the loan must be a conventional, FHA, or VA mortgage and the loan must close within sixty days of the date of your application. You must also provide all the required documentation within the appropriate deadlines and can’t change your loan terms. Triumph Bank also notes that if the delay in closing is due to a third party or something beyond their control, the guarantee doesn’t apply.
AimLoan.Com - Guaranteed Closing Costs
Here’s another type of guarantee that lenders can offer – Guaranteed Closing Costs! Closing costs are the fees associated with your loan, and are usually paid at closing. Among other fees, they can include the application fee, appraisal fee, discount points, and more. Closing costs can range from just a couple hundred dollars to a couple thousand, so having a guaranteed amount that you know you’re going to pay is useful. That way, you can plan your budget and figure out how to save. Lenders are required to give you an estimate of closing costs, and this estimate must be made in good faith (which means that the closing costs they listed are most likely what you’ll have to pay). Lenders aren’t allowed to underestimate how much a fee will be, nor are they allowed to dramatically increase fees for no reason. Having a Loan Estimate and Guaranteed Closing Costs help to prevent any surprise expenses. AimLoan.Com not only guarantees their own closing costs – they also guarantee the closing costs of the third parties they work with! (They do note, however, that if the borrower chooses to work with a different third party, they can’t guarantee that third party’s fees.)
Remember – you should always read the terms and conditions of a guarantee, so that you know what to expect and in what cases the guarantee will apply. There are many things to consider when searching for a lender, but being able to rely on a guarantee is a huge point in these lenders’ favor.