How to Become a Loan Notary: A Step-by-Step Guide

A Florida notary signing agent (NSA)—sometimes referred to as a loan signing agent (LSA)—is a notary commissioned in Florida who has experience in walking customers through the loan signing process.

Notary loan signing agents work for the mortgage or real estate industries. They travel to people’s homes or businesses and assist borrowers with mortgage and closing paperwork. It is the duty of a notary signing agent to make sure the loan documents have been properly signed and executed so that they can be processed efficiently and without obstacles. This is an important duty, because if such loan documents are not processed in a timely manner, a buyer could miss out on an attractive interest rate lock or even lose the opportunity to buy his or her dream house. Likewise, a seller could be delayed in a necessary move because a sale takes too long to close.

Loan signing agents typically make between $75 and $200 per “loan signing job.” Another benefit of being an LSA is that you can often have steady work supplied to you by a relator or mortgage company.

So you want to become a loan notary? This comprehensive guide will walk you through everything you need to know to start a successful career as a loan signing agent.

What is a Loan Notary?

A loan notary, also known as a loan signing agent or notary signing agent, is a notary public who specializes in loan document executions for real estate transactions. When a borrower takes out a mortgage, there is a stack of paperwork that must be signed at closing The loan notary’s role is to meet with the borrower, verify their identity, explain the loan documents, witness their signature, and notarize the documents This ensures the loan can proceed to funding.

Why Become a Loan Notary?

There are many benefits to becoming a loan notary

  • Earn $75-$200 per signing. Many notaries perform 1-2 signings per day, providing full or part-time income.
  • Flexible schedule. You can choose when and how often to work.
  • Mobile business. Meet borrowers at their home or business. No brick-and-mortar office required.
  • Recession-proof industry. People always need mortgages, even in down economies.
  • Gain experience with legal documents. Valuable experience for future career opportunities.

Step 1: Become a Notary Public

The first step is to become a commissioned notary public in your state. Each state has its own requirements, but generally you must

  • Be 18+ years old
  • Pass a background check
  • Have no felonies
  • Take a notary education course
  • Pass a notary exam
  • Purchase a notary bond
  • File an application with the state
  • Pay application fees

The process takes 1-2 months. Check with your state’s notary commissioning agency for specifics.

Step 2: Take Loan Notary Training

While not legally required, taking a loan notary training course is highly recommended. A good course will teach you:

  • An overview of loan packages and common documents
  • How to identify borrowers
  • Best practices for conducting loan signings
  • How to avoid legal risks and errors

Many courses also prepare you for industry certification exams. Online courses range from $99-$300 and can be completed in a few days.

Step 3: Get Certified & Background Checked

To gain credibility with lenders and signing services, get certified through a professional organization like the National Notary Association. Certification proves you are properly trained and qualified.

Most organizations provide:

  • Industry-standard training and exams
  • Background screening compliant with lender requirements
  • Ongoing education and resources

Fees range from $75-$200 depending on the provider. The background check can take 1-2 weeks to complete.

Step 4: Obtain E&O Insurance

Errors and omissions (E&O) insurance protects you if you make a mistake during a signing. It’s not legally required, but strongly recommended by industry groups. Purchase a policy with at least $25,000 coverage. Expect to pay $200-$300 per year.

Step 5: Get Your Loan Notary Supplies

To perform professional signings, you’ll need:

  • Notary journal to record signings
  • Notary seal/stamp
  • Loan document signing guide
  • Signing table
  • Pens, folders, document checklists
  • Laptop, printer, fax (or access to Office Depot, etc)

Supplies will run $200-$500 depending on quality.

Step 6: Market Your Loan Notary Services

To get clients, market your services by:

  • Joining online notary databases where lenders search for signing agents
  • Introducing yourself to local real estate offices, title companies and lenders
  • Creating a website and distributing business cards
  • Promoting your services on social media
  • Joining local business networking groups
  • Asking for referrals from your notary network

With marketing, the opportunities are endless. Be persistent and creative.

Step 7: Perform Your First Signings

At your first signing, arrive early, double check loan documents, and walk the borrowers carefully through each document. Always follow correct notarial procedures. Handle documents securely to protect client privacy.

As you gain experience, you’ll become more comfortable explaining loans and answering borrower questions. Provide top-notch customer service so clients recommend you.

Join a Professional Association

For ongoing training and support, join a professional notary association like the American Society of Notaries. Benefits include seminars, networking, marketing resources, education discounts, and industry advocacy.

Becoming a loan notary provides an excellent opportunity to earn income while helping people achieve the dream of homeownership. Follow the seven steps to launch a rewarding career. With hard work and perseverance, you can build a successful business as a loan signing expert. Good luck!

To become a notary signing agent (or LSA), follow these steps:

  • Receive a Florida notary public commission by following the steps outlined on https://www.floridanotaries.com/how-to-become-a-florida-notary
  • Take a loan signing course to ensure that you are well versed in the loan process. We recommend taking a basic loan signing course to see if this is something you would like to pursue. You may also need to take a certification test to prove to potential employers that you have mastered the knowledge you need to be a reliable signing agent.
  • Purchase errors and omissions (E&O) insurance. While E&O insurance is not required by Florida law, it’s a good idea to have such as policy because, as a loan signing agent, you will be handling a lot of sensitive financial documents. E&O insurance is a type of personal liability insurance that will protect you if you make an unintentional mistake in the course of your duties or if a false claim is filed against you. Your notary bond protects the public, but an E&O policy will protect you.

How Do I Become a Florida Notary Signing Agent (NSA)?

While Florida state law does not require signing agents to be licensed by the state, there are certain industry standards that should be met if you hope to be employed in the real estate or mortgage industry.

How to Become a Notary Loan Signing Agent in 2021

FAQ

What type of notary makes the most money?

One of the most lucrative ways to make money as a notary public is by becoming a loan signing agent. Signing agents are responsible for guiding borrowers through the process of closing a mortgage loan, ensuring that all paperwork is properly signed and notarized.

How much does a loan signing agent make in Florida?

As of May 27, 2024, the average hourly pay for a Loan Signing Agent in Florida is $18.54 an hour. While ZipRecruiter is seeing salaries as high as $23.17 and as low as $7.54, the majority of Loan Signing Agent salaries currently range between $12.21 (25th percentile) to $18.32 (75th percentile) in Florida.

How much do loan signing agents make in Texas?

As of May 29, 2024, the average hourly pay for a Loan Signing Agent in Texas is $19.49 an hour. While ZipRecruiter is seeing salaries as high as $28.89 and as low as $9.41, the majority of Loan Signing Agent salaries currently range between $15.24 (25th percentile) to $22.84 (75th percentile) in Texas.

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