Close-on-Time Guarantee Eligibility and Exclusion Requirements
If you are buying a home, Discover Home Loans will work to be ready to close your loan on the date specified in the Close-on-Time Guarantee Certificate that we email to you. In the event that we are not ready to close your loan by this date, a lender credit of up to $1,000† will be automatically credited toward paying for permissible closing costs on your loan with Discover Home Loans at the time of closing. This program is subject to change and may be discontinued at any time. The Close-on-Time Guarantee is not available for refinance loans (see below for other exclusions).
To qualify for the Close-on-Time Guarantee, you must meet the eligibility requirements below:
- You must sign up for access to Discover Home Loans' MyStatus website and upload your requested documents using MyStatus. Documents must be provided within THREE CALENDAR DAYS of the time of request. All requested responses and documentation must be received by Discover Home Loans no later than SEVEN BUSINESS DAYS prior to the agreed upon closing date. A sample list of requested documents is provided below;
- You must provide a copy of your original purchase contract, and Discover Home Loans must agree in advance to the closing date on the purchase contract, or a date mutually agreed upon between you and Discover Home Loans. Only the date listed on the Close-on-Time Guarantee Certificate will be considered.
- You must apply and qualify for a loan with Discover Home Loans;
- The information on your loan application must be accurate and must not contain fraudulent information or material misrepresentations;
- The actual appraised value must be equal to or greater than the purchase price listed on your purchase contract;
- You may not request loan term changes, e.g. changes in loan program, term of loan, or down payment amount;
- You must lock your loan rate and satisfy all loan requirements and conditions, including payment of all advance fee deposits, at least seven business days prior to the Close-on-Time Guarantee Certificate closing date; and
- For FHA loans, your property must qualify for FHA financing.
The Close-on-Time Guarantee is void if:
- The closing date is missed due to delays attributable to the customer, an unaffiliated third party vendor or the seller;
- The closing date is missed due to acts of God outside the control of Discover Home Loans, including inclement weather, natural disaster, catastrophic event, act of terrorism or other public emergency beyond the control of Discover Home Loans.
The following loan programs are not eligible for the Guarantee:
- Refinance loans;
- Loans requiring a subordination of a prior loan;
- Loan applicants who have disputed credit accounts;
- Properties requiring repairs or re-inspection;
- Bank owned properties or homes purchased through a "short-sale"
List of Requested Documents
- Employee: Two years of W-2s and 30 days of paystubs;
- Self-employed: Two years of 1040s (tax returns);
- Documents requested as conditions of approval;
- Form 4506-T (Request for Transcript of Tax Return);
- Borrower's Authorization to Release Information;
- Appraisal Authorization;
- Appraisal Appointment;
- Lock Agreement (if applicable);
- Any additional requests for client documentation.
† Your loan program may limit the total amount that we may credit on your mortgage loan. Because of these limits, your closing credit may be less than $1,000. Speak with your Dedicated Mortgage Banker for more information.