The loan documents are a collection of documents that you are required to sign on closing day to complete your home purchase or refinance. A Notary Signing Agent (NSA) role is to assist clients to understand and explain the process and the proper execution and notarization of loan documents never give advice. You will need to understand the different loan documents that are included in the loan packages and guide the borrower thru the packages. Once you have guided the borrower thru the loan documents you will ship the documents back to the escrow officer and they will deliver them to the lender to disburse the loan funds to escrow.
The loan documents are Promissory Notes which is legal evidence of your mortgage and promise to repay the loan. A copy of your loan is kept as a public record, with your county clerk’s office. The promissory note details the loan amount, interest rate, payment schedule, and length of the term of the loan.
To get familiar with these loan documents you can check the National Notary Association (NNA) website for The Notary Signing Agent’s Loan Documents Sourcebook provides a plethora of information on all the loan documents.
1 – Refinance Loan
This type of loan involves taking out a new loan to pay off your original mortgage loan. You may refinance to benefit from lower market interest rates, cash out a portion of your equity, or reduce your monthly payments. The number of pages in this loan package maybe about 100 – 200 pages and you may have 8 to 12 notarial acts per package.
2 – Loan Modifications
A Loan Modification is a change to the original terms of your mortgage loan, and it directly changes the conditions of your loan. The number of pages in this loan package maybe about 25 – 40 pages and you may have 3 to 5 notarial acts per package.
3 – Seller Loan
Clients who were selling their homes are the Seller Loan. The number of pages in this loan package maybe about 20 – 50 pages and you may have 5 to 8 notarial acts per package.
4 – Purchase Loan
The Purchase Loan is made to a borrower to finance the buying/purchase of a house, an expensive asset one could not otherwise afford. The terms of a purchase loan vary according to the lender’s rules and the borrower’s creditworthiness. The number of pages in this loan package maybe about 110 – 200 pages and you may have 10 to 15 notarial acts per package.
5 – Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans. The number of pages in this loan package maybe about 125 – 150 pages and you may have 10 to 20 notarial acts per package.
6 – Reverse Mortgage Loans
The Reverse Mortgage Loan allows homeowners to borrow money using their home as security for the loan. With a reverse mortgage loan, borrowers do not make monthly mortgage payments. The loan is repaid when the borrower no longer occupies the home. Interest and fees are added to the loan balance each month and the balance grows. With a reverse mortgage loan, homeowners are required to pay property taxes and homeowners insurance themselves, use the property as their principal residence, and keep their house in good condition. The number of pages in this loan package maybe about 200 – 250 pages and you may have 10 to 15 notarial acts per package.