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Purchase Promise Perks

Eligibility Requirements

*CLOSE ON TIME GUARANTEE (“COT Guarantee”)

General

If your application for a purchase loan is approved, McLaughlin Mortgage pledges to close your loan by the date stated in your purchase contract (“Closing Date”). If you have met all eligibility requirements (see below) but you do not close your loan with McLaughlin Mortgage by the Closing Date because of something McLaughlin Mortgage or their financing partners did or did not do, McLaughlin Mortgage will pay you the lesser of (a) $1,000 or (b) an amount equal to the principal and interest portion of your first mortgage payment (“Guarantee Amount”). The Guarantee Amount will be sent to you by check within 30 days of the date you close your mortgage loan with McLaughlin Mortgage. Only one Guarantee Amount will be paid per loan transaction regardless of the number of applicants or delays. You will be responsible for the payment of taxes, if any, related to the Guarantee Amount. McLaughlin Mortgage reserves the right to modify or end the COT Guarantee program at any time at its sole discretion.

Eligibility: To be eligible for the COT Guarantee, you must:

  • Provide a copy of your fully executed, final purchase contract to your loan officer.
  • Submit a complete and fully executed loan application to McLaughlin Mortgage at least 20 business days prior to the Closing Date. The information in the loan application must be accurate and cannot contain fraudulent information or misrepresentations.
  • Return a signed intent-to-proceed to McLaughlin Mortgage at least 20 business days prior to the Closing Date.
  • Order an appraisal within 3 business days of returning the intent to proceed, and the subject property must appraise at or above the purchase contract sale price.
  • Lock your loan rate and satisfy all loan requirements and conditions, including the payment of applicable fees, at least 10 calendar days prior to the Closing Date.
  • Provide all requested and/or required documentation and information to McLaughlin Mortgage within 48 hours of each request.

Invalidations: The following scenarios will invalidate the COT Guarantee:

  • Events beyond our reasonable control that delay the Closing Date, including, but not limited to, natural disasters; terrorist acts; war; civil unrest; emergency government or military actions; breakdowns, malfunctions, or interruptions of computer facilities or systems; labor difficulties.
  • Delay in completing the new construction of the subject property.
  • Improvements and/or repairs made to an existing subject property that delay the Closing Date.
  • Delays caused by any third party (e.g., buyer, seller, insurance company, title company, vendor, etc.) outside the control of McLaughlin Mortgage.
  • Prohibitions on the COT Guarantee by applicable law.

Exclusions: The following are excluded from the COT Guarantee:

  • Refinance transactions
  • Jumbo loans
  • FHA 203(k) rehabilitation loans or properties requiring repairs or re-inspection
  • Loans requiring a mortgage subordination agreement
  • Loans including a grant or down payment assistance
  • Loan applicants who have a disputed credit account
  • Lender-owned properties or homes purchased through a short-sale
  • Non-arm's length transactions
  • Commercial transactions

**2% COMMISSION CREDIT

Purchase Promise Perks are provided by or through referral partners or licensed real estate agents of Canopy Road Realty, LLC ("CRR"), an affiliate of McLaughlin Mortgage LLC ("MM") as follows. You are not required to use the services of MM or CRR as a condition for the settlement of your loan or purchase, sale, or refinance. MM is not licensed as a real estate broker, and its employees are not authorized to perform, nor do they perform, any activity that is or could be construed as unlicensed real estate activity. 

Home buyers and sellers must use a licensed real estate agent referred by CRR to be eligible for Purchase Promise Perks and the prospective purchaser or seller of real estate property must be eighteen (18) years of age or older. In some cases, a real estate agent in the CRR network may not be available. If you are currently working with a real estate agent, this is not a solicitation. 

2% Commission Credit applies when the borrower's residence is listed with or through CRR, the borrower must purchase their next home with or through CRR, and the financing must be obtained through MM. The credit applies as a reduction in the real estate commission on the purchase side of the transaction. In the event the co-op brokerage fee is less than 3% of the purchase price, the amount of the commission credit will be reduced to match the amount under 3%. For example, if a 2.5% co-op commission is offered to the selling agent, the credit amount will be 1.5% of the sale price. A minimum 1% commission will be due to the agent or referral partner of CRR.  

Purchase Promise Perks or Commission Credit may be in the form of a closing cost credit from CRR disclosed on the Closing Disclosure or a reduced real estate commission. 

Visit mortgagemenu.com/ppp to view the eligibility requirements for the Close-on-Time Guarantee. 

This is not a commitment to lend. Application required and subject to underwriting approval and collateral requirements. Full documentation required. Not all applicants will be approved. Loan secured by a lien against the property. Terms, conditions, and restrictions apply. Fees and charges apply and may vary by state, product, and loan amount. Interest rates are subject to change without notice. If you do not lock in a rate when you apply, that rate may not be available at loan commitment, lock-in, or closing. Additional payments of taxes and property insurance are required. Important information relating specifically to your loan will be contained in the loan documents, which alone will establish your rights and obligations under the loan plan. Call for details. 

McLaughlin Mortgage LLC is not, nor is it affiliated with, any governmental agency or organization. We do not provide legal, tax, or investment advice. Equal Housing Opportunity.  

Last updated on 03/14/2023