Here's how the 15-day guarantee works
Together, we make it happen.
Before the clock starts, you'll need to:
- Get pre-approved with Clara
- Upload your signed purchase contract
- Give your intent to proceed
- Pay your appraisal deposit
- Choose your close date
Clear any conditions and lock your rate within 5 days.Us:
We check to see what additional information we need.
Answer new questions or upload new documents within 24 hours to stay on track.Us:
We review new documents and help you coordinate your home appraisal by day 7.
Almost done! Review your closing disclosures and sign your closing docs by the date set based on when you want the loan to fund.Us:
We send your closing disclosures and prepare your closing packet. These are the last two steps before closing, when your funds are released.
If we miss the closing deadline and it's our fault, we'll pay you up to $5,000 at closing. See terms below.
Why a 15-day guarantee?
Three reasons why closing speed matters:
A fast closing can make you more attractive to sellers, even against cash offers.
You avoid the stress and anxiety of wondering if your loan will close on time.
You can move forward with what's important in your life without worrying about financing.
When we can't guarantee a 15 day close:
- If the loan amount is more than $636,150 for a single family home.
- If the property is bank-owned or being purchased through a "short-sale."
- If the appraisal has to be done more than once, happens later than 7 days, or is less than the contracted purchase price.
- If you request changes to the loan program, term of loan or down payment amount after conditional approval has been given.
- If there’s an unforeseen event like a natural disaster that affects our ability to perform, or third party delays.
This is how our lawyer wrote out all of the above:
Guarantee is available only for purchase loans for single-family properties.
Applicant must have received a pre-approval letter from Clara that covers the subject property before the purchase contract is submitted to Clara. The pre-approval letter must not expire prior to the designated closing date. Pre-approval means the income, assets, and liabilities submitted on your pre-approval application have been verified by a Clara underwriter who issued a pre-approval letter.
You must apply and qualify for a loan from Clara that matches the loan program in the requisite pre-approval letter.
A minimum of 15 days is required to close the loan, as measured from the date on which Clara has received the final, fully-executed purchase contract, the appraisal payment, and your “Intent to Proceed” (the “Start Date”). This Guarantee also applies to purchase transaction closing timelines of longer than 15 days.
You must provide all requested documentation no later than five days after the Start Date.
You must lock your rate and satisfy all loan requirements and conditions, including payment of all advance fee deposits, no later than 5 days after the Start Date.
You must satisfactorily respond to requests for additional documentation and questions regarding your loan application within 24 hours.
Appraisal must be completed no later than 7 days after the Start date.
As always, the information on your loan application must be accurate and must not contain fraudulent information or material misrepresentations.
The appraised value of the property must be at least equal to the contracted purchase price.
You may not request changes to loan program and terms after a conditional approval has been rendered, e.g., changes in loan program, term of loan, or downpayment amount.
You must be available to sign closing documents on the date provided by Clara.
$5,000 credit is dependent on closing credits not exceeding closing costs. The $5,000 credit will be provided only to the extent that closing costs exceed closing credits.
Applicable law or investor requirements may impose a required waiting period prior to closing, and that waiting period may prohibit Clara from closing on the set estimated closing date.
Loans made or arranged pursuant to a California Finance Lender’s Law license and available only for California properties.
Unforeseen circumstances adversely affecting the ability to perform (natural disasters, inclement weather, catastrophic event, or other major event beyond Clara’s control), as well as applicant or third party delays (e.g., inspection findings leading to required repairs or re-inspection, flood zone determination, delay in appraisal due to seller’s or appraiser’s availability), will void the 15-Day Close Guarantee.
The following loan programs are not eligible for the Guarantee:
- Refinance loan;
- Loans in excess of $636,150 for single family properties;
- Properties requiring repairs or re-inspection;
- Bank owned properties or homes purchased through a “short-sale.”