MORTGAGE FIRST COMMITMENT LIMITED GUARANTEE TERMS AND CONDITIONS
The First County Bank Mortgage First Commitment Limited Guarantee (“Commitment Limited Guarantee”)program is designed to provide a credit decision for a “Conditional Loan Commitment” to an “Applicant” for a “Purchase Money First Mortgage” within fifteen (15) calendar days from the date First County Bank (“the Bank”) receives a “Completed Commitment Limited Guarantee Loan Application” (which includes fully executed purchase contract). The Commitment Limited Guarantee program applies to Purchase Money First Mortgage loans only secured by a first position lien on a 1-4 family owner-occupied residential property located within the state of Connecticut.
1. The Commitment Limited Guarantee is valid if:
- All required documentation is received by the Bank within forty-eight (48) hours of the submission of a Completed Commitment Limited Guarantee Application (as defined within Section 4). Section 7 sets forth the documentation that may be required by the Bank. Note that the 15 calendar day period commences only after a Completed Commitment Limited Guarantee Application (as defined within Section 4) is received by the Bank which includes a fully executed purchase contract.
- The Bank receives a copy of the original fully executed purchase contract specifying a proposed closing date. The purchase contract must provide for, at a minimum, a thirty (30) calendar day period to close the mortgage starting from the date of the final acceptance of all parties of the purchase contract.
- The applicant must lock your loan and complete and satisfy all loan requirements and conditions, including payment of all Initial Fees (credit report, appraisal, and rate lock fees) listed in the Good Faith Estimate at least ten (10) business days prior to the set closing date.
- The Applicant provides signed acknowledgment of their preliminary qualification into the program and acceptance of these terms and conditions.
2. Exclusions and Limitations:
- This Commitment Limited Guarantee program specifically excludes any refinanced loans, construction permanent loans, temporary financing or bridge loans, condominiums, contracts that are subject to the Probate Court, any “short sale” transactions, non-purchase money home equity lines of credit, home equity loans, Federal Housing Department (“FHA”) loans, Connecticut Housing Finance Authority (“CHFA”) mortgages, Veterans Association (“VA”), housing finance bonds, grants; down payment assistance programs; reverse mortgages, loans that require subordination of a second lien, or loans brokered to us or we broker to another lender.
- The Commitment Limited Guarantee program excludes any online loan applications.
- The Commitment Limited Guarantee program excludes any other transaction that does not have a written contract between a buyer and seller for the purchase of a 1-4 family owner-occupied residential property.
- This Commitment Limited Guarantee program also excludes purchase mortgage loans where the purchase contract’s proposed closing date is less than thirty (30) calendar days from the date that First County Bank initially receives your Completed Commitment Limited Guarantee Loan Application.
3. The Commitment Limited Guarantee is not valid if:
- The Applicant changes the loan product or terms.
- The Appraisal must reflect the “as-is value” of the property. Any adverse conditions that affect the property such as, but not limited to, “subject to” or pose a health and safety issue will result in voiding this Commitment Guarantee.
- The Applicant does not specify a proposed closing date in the original purchase contract. The Applicant reduces the time between the closing date and the date that was in the original purchase contract.
- The Applicant’s Completed Commitment Limited Guarantee Loan Application or loan documentation contains fraudulent information or material misrepresentations.
- The Applicant is unable to provide good title. If there are issues with the title to the property on which the mortgage is being taken and you are unable to provide us with a first position perfected security interest in the property, it may be necessary to delay closing.
- The Bank is unable to verify the information obtained while processing the Applicant’s Completed Commitment Limited Guarantee Loan Application or during the processing of your loan.
- The loan amount or product changes. For example, if it is necessary for the Bank to deny an application for a particular loan program and offers you an alternative. Although it is likely that your loan commitment will be issued within fifteen (15) days, if the Bank makes a counter offer, the Commitment Limited Guarantee program would no longer be applicable.
- The Bank fails to meet the commitment date due to your actions, omissions or delays, or due to those of an unaffiliated, third party. Efforts will be made to accommodate your commitment date but is not guaranteed.
- The Bank fails to meet the commitment date due to inclement weather, a natural disaster, catastrophic event, or other major event beyond our control.
- Any agent or other individual working on your behalf or on behalf of the seller, who is not affiliated with the Bank and is not hired or retained by the Bank, causes delay in the processing and underwriting of your loan. The Bank cannot be responsible for the actions of non-affiliated third parties.
4. Commitment Limited Guarantee Defined Terms:
- Completed Commitment Limited Guarantee Loan Application: Includes all applicant’s names, valid social security numbers, property address, property value, and loan amount. It also includes a completely executed (by all parties) copy of the purchase contract. Additional information thereafter may be requested by First County Bank as required to process and underwrite your loan application as defined within Section 7. The Applicant(s) submitting a loan application for the Commitment Limited Guarantee program must provide a signed acknowledgment of their preliminary qualification into the program and acceptance of these terms and conditions.
- Applicant: All individuals applying for credit under the Commitment Limited Guarantee program.
- Purchase Money First Mortgage: An extension of credit for the purpose of purchasing real property. It applies to loans only secured by a first position lien on a 1-4 family owner-occupied residential property located within the state of Connecticut.
- Conditional Commitment: A stated amount of mortgage debt offered by the Bank that is predicated under the Applicant meeting specified underwriting and closing terms and conditions set forth by the Bank. The commitment is in writing and has an end-date. If the loan is not funded within that period, the offer expires.
5. Commitment Guarantee:
- The Bank is prepared to issue a Conditional Loan Commitment to the Applicant for a Purchase Money First Mortgage within fifteen (15) calendar days from when the Bank first receives a Completed Commitment Limited Guarantee Loan Application as defined within Section 4 of these terms and conditions. First County Bank will give the Applicant $1,000.00 if the Bank fails to issue a credit decision for a Conditional Loan Commitment within the stated timeframe. The Applicant is entitled to a $1,000.00 maximum payment per Completed Commitment Limited Guarantee Loan Application submitted to First County Bank. Provided the terms and conditions set forth herein are satisfied, and the Bank does not appropriately provide the Applicant $1,000.00 under this Commitment Guarantee, the Applicant may request it in writing within forty-five (45) calendar days of the final closing date of the mortgage loan by contacting us at either:
First County Bank (Attention: Goretti Joseph) 117 Prospect Street, Stamford, CT 06901;
First County Bank will mail you a check within 10 business days. Any payments made under the Commitment Limited Guarantee may be reported on an IRS Form 1099-MISC. Please consult your tax advisor regarding your individual tax implications. In the event that you are to receive a payment under this program, you are responsible for your initial and subsequent mortgage payments in accordance with your mortgage terms with First County Bank.
- First County Bank reserves the right to issue a conditional commitment within the fifteen calendar day (15) time period and further requires that all such outstanding conditions must be submitted by the Applicant in a satisfactory manner to the Bank at least ten (10) calendar days prior to the specified closing date. This Commitment Limited Guarantee is not a mortgage loan approval or a commitment to lend and is subject to certain exceptions as set forth below and contingent upon your prompt satisfaction of all underwriting guidelines and loan conditions and providing an acceptable property appraisal, and title report, as well as certain other conditions as set forth below.
Employees and agents of First County Bank and their immediate family members and persons residing in the same household of such employees are not eligible to enter or win. This program is limited to the applicants of a residential mortgage loan with First County Bank and may not be assignable or transferable. First County Bank may alter, suspend, or change the terms and conditions of this Commitment Limited Guarantee program at any time, without notice, except for those eligible applications loan applications submitted and received by First County Bank prior to our changes to the terms and conditions. This is not an offer to enter an agreement regarding interest rates. The eligibility requirements and conditions relating to the Commitment Limited Guarantee are not conditions to obtaining credit from First County Bank and are not considered in decisions of First County Bank to grant credit.
Commitment Limited Guarantee program is subject to applicable federal, state and local laws. Applicants agree to be bound by these terms and conditions. Applicants expressly acknowledge that these terms and conditions have been drafted in the English language, and that any translation prepared for any reason will be of no legal effect and the English version of these terms and conditions shall govern any dispute.
7. Underwriting documentation the Bank may require:
- Fully executed purchase contract with all addenda.
- W-2 forms — or business tax return forms if self-employed — for the last two years for every person signing the loan.
- Pay Check stubs for the most recent 30 day period for each person signing the loan.
- If you are: self-employed, commissioned, in sales or have rental property - provide complete tax returns for the past 2 years and a year-to-date profit loss statement.
- Documentation to verify additional income, such as child support or a pension or social security.
- Copies of 2 months of bank or credit union statements for both checking and savings accounts. We need ALL pages.
- Copies of your most recent 401(k) or other retirement account statement.
- All online or other activity printouts from financial institutions must clearly identify the borrower, the name of the financial institution and the account number.
- Verification of the full account numbers will be required if they are not found on the full statements or printouts.
- Deposits that are not verified from payroll, retirement, SSA, disability sources and that are deemed to be excessive must be documented with a satisfactory letter of explanation and supporting documentation.
- It is common to move funds from multiple accounts into one account to pay down payments and closing costs from. This is acceptable but the Bank will require clear documentation on where the monies came from and how they enter into any new bank accounts.
- If credited at closing, all Earnest Money deposits must be documented with a copy of the canceled check and the bank statement reflecting the funds drawn from the borrower's account.
- Account numbers of all your credit cards and the amounts for any Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
- Gifts are allowed. A fully executed gift letter confirming no repayment will be required. The gift letter must include name, address, and relationship of the donor; both borrower and donor signatures and confirm that the funds were not made available from any party to the transaction.
- Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
- Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
- Copy of valid driver's licenses or state ID cards for all borrowers.
- Divorce/Child Support papers.