Guaranteed Closing
Our Guaranteed Closing program helps conventional mortgage buyers compete with cash buyers.
How it Works for Buyers: Sellers like cash offers because they avoid the contingencies involved with mortgages. To give the buyer a competitive edge, we'll guarantee the seller a closed sale, meaning we'll purchase the home even if the buyer doesn't.
How it Works for Sellers: When working with a buyer who has qualified for this program, the seller is guaranteed a closed home sale. If the buyer does not purchase the home under the terms of the purchase contract, then we will.
The Power Play
The buyer gets a Good-to-Go Loan Commitment from John Adams Mortgage. When the buyer makes an offer on a home through their real estate agent, they will include a Guaranteed Closing Program Addendum with their offer. This addendum needs to be signed by the buyer, seller and Investments One (our affiliated entity that actually makes the guarantee). The offer must include both a property inspection and appraisal contingency.
Once the property inspection is done, then Investments One will let the buyer know within two days if they also are on board with the inspection and the appraisal results. When everyone is on the same page, then the contingencies are waived, and we set a closing date.
If Investments One declines to guarantee the closing due to the inspection report or the appraisal, the seller still has the option of continuing the sale with the buyer, just without the Guarantee. In that case, the buyer and the seller simply move to a closing date.
If the seller declines to continue, then the transaction is canceled, and the earnest money is returned to the buyer.
Buyer Qualifications
The Guaranteed Closing program works with conventional loans for a primary residence, single-family or warrantable condominium with a purchase price between $150,000 and $500,000. Before the buyer makes an offer on a specific property, they must be sure to check with their John Adams loan officer to make sure the property will qualify for the program.
The buyer must agree to submit a formal mortgage application to John Adams within two calendar days after they receive notice of all parties’ acceptance of a binding purchase agreement and the Addendum.
The buyer must agree to provide both the property inspection and appraisal to Investments One for their review and approval.
Common Buyer Questions
What happens if I can’t close for any reason, can I still purchase the property?
You will have an additional 45 days after Investments One closes on the property to purchase the home from Investments One.
What happens to my earnest money deposit if I don’t close?
If you are unable to purchase the property, it will be retained by Investments One to help cover its costs to resell the home.
What are the documents I need to sign?
There are two, the program agreement (which says much of what this does) and the Guaranteed Closing Addendum that is included with your purchase offer.
Common Seller Questions
What are the documents I need to sign?
As the Seller, just the Guaranteed Closing Addendum.
What happens to the earnest money deposit if the buyer does not close?
If they are unable to purchase the property, it will be retained by Investments One to help cover its costs to resell the home.
What happens when Investments One buys my home?
Once given notice, Investments One will close under the terms of the contract within 10 days.
Reach out to inquire further about our Guaranteed Closing Program.