Guarantee Agreement: Preliminary or Closing Doc?

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Question:

Is a guarantee agreement a preliminary or closing document and why? I've been told that it was a preliminary but showing on our loan program as a closing document.

Answer:

In my experience, you'll want to have any guarantee agreement set up in advance of a loan closing, since you may be relying on the guarantee to approve the loan. But it's not uncommon to have the guarantee actually completed and signed at the closing.