Notary Signing Agents (NSAs) facilitate loan closings for the mortgage finance industry. Before starting the NSA certification process, you must be commissioned as a Notary Public. Please be aware that opportunities to conduct loan signings may be limited or restricted in 18 states.
Buying or refinancing a home usually requires signing multiple important legal documents like the deed, mortgage, and loan note. While these documents need to be notarized for validity, not all notaries have specific expertise in real estate transactions. Specialized notary signing agents provide an extra layer of protection by ensuring mortgage paperwork is fully reviewed, understood, and completed properly.
If you’re in the process of a real estate transaction here’s what to know about using notaries for loan documents
Overview of Notarizing Mortgage Documents
Notarization serves as a way to validate the signing of important paperwork It helps prevent fraud and confirms signers entered agreements knowingly and willingly,
During real estate deals, key documents like:
- Deeds
- Mortgages
- Promissory notes
- Affidavits
- Disclosures
Need to be notarized as part of the closing process. This is where notaries for loan documents come in.
Not All Notaries Specialize in Mortgages
In most states, notaries get commissioned to perform basic notarial acts like:
- Verifying IDs
- Witnessing signatures
- Administering oaths
However, some types of documents require deeper understanding. This is especially true for mortgage paperwork.
That’s where specialized notary signing agents have an advantage. They receive training on real estate documentation to help ensure everything is complete and accurate.
Benefits of Using Notary Signing Agents for Loans
Notary signing agents offer a few key benefits for real estate transactions:
-
Expertise – They understand what is required for loan documents specifically. A general notary may not catch errors.
-
Efficiency – NSA training means they work quicker and need less oversight on mortgage paperwork.
-
Compliance – Notary signing agents keep up with the latest laws and regulations around real estate closings.
-
Convenience – Many do mobile closings, traveling directly to signers to notarize documents.
-
Cost – Using a specialist notary signing agent may have a higher fee but can prevent costly mistakes.
Notary Signing Agent Duties for Mortgage Documents
Notary signing agents have several important responsibilities when it comes to notarizing real estate paperwork:
-
Verify identities – Confirm all parties are who they claim to be by checking government IDs.
-
Witness signatures – Observe borrowers signing loan documents and promissory notes.
-
Check for errors – Review all mortgage paperwork for mistakes, missing information, or discrepancies.
-
Explain documents – Provide a basic overview of each document and answer questions to confirm understanding.
-
Notarize paperwork – Perform notarial acts on mortgage documents once fully reviewed.
-
Record journal entries – Document details of each notarization in their notary journal.
Common Loan Documents Notaries Handle
While they may vary between transactions, typical mortgage documents notaries need to deal with include:
Sale Documents
- Deed – Transfers legal title from seller to buyer
- Bill of sale – Lists assets included in the home sale
Mortgage & Loan Documents
- Promissory note – Details loan terms like amount, interest, payment schedule
- Mortgage or deed of trust – Gives lender a lien on the property
- Right of rescission – Gives borrowers 3 days to cancel the mortgage
Disclosures
- Truth in Lending Disclosure (TILA) – Breaks down loan costs
- HUD-1 Settlement Statement – Details all fees at closing
Affidavits
- Occupancy affidavit – States whether home is a primary residence
- Identity affidavit – Affirms signer is who they claim to be
How to Find Notary Signing Agents for Loans
If you need mortgage documents notarized, here are some options for finding a specialized notary:
- Ask your lender, real estate agent, or title company for recommendations.
- Search online directories like the National Notary Association.
- Check with local banks and credit unions to see if they provide notary services.
- Search for mobile notaries that will come to your location to notarize.
- Consider using remote online notarization (RON) if permitted in your state.
Should You Use a Notary Signing Agent or Notary Public?
General notaries can legally notarize any document. But for real estate paperwork, the expertise of a notary signing agent reduces the risk of mistakes or errors during the closing process. Unless you have a simple transaction, your best bet is using a notary who specializes in mortgage documents.
Notarizing Loan Documents with Care
Buying a home usually represents the biggest financial transaction in someone’s life. So it’s crucial that key paperwork like the mortgage and deed are carefully reviewed, understood, and notarized properly. This helps ensure every party’s interests stay protected. Notary signing agents have the right training and qualifications to provide this vital service when notarizing your loan documentation.
How is a Notary Signing Agent different from a traditional Notary?
Although traditional Notaries and Notary Signing Agents both perform notarizations for their clients and must have an active commission, Signing Agents are specially trained to handle and notarize loan documents. In most cases, they meet additional qualifications such as background checks, extra training and/or special licensing (depending on state regulations).
Why am I being asked to do a background check?
In order to guard borrowers private financial information, the mortgage industry requests all persons involved in the lending process to undergo background screenings. Lenders in turn instruct title services companies to ensure that everyone with access to mortgage documents has been screened. This applies to everyone handling loan documents including Notaries who act as Signing Agents.
Mock Loan Signing: How To Explain Loan Documents as Notary Loan Signing Agent
FAQ
What is a notarized loan?
Do notaries summarize documents?
Why should a notary signing agent learn about closing documents in a loan package?
What is a notary signing agent’s loan documents sourcebook?
The Notary Signing Agent’s Loan Documents Sourcebook is a must-have resource for both the beginner and veteran signing agent.
How to notarize a loan?
Make sure to sign all the signature fields in front of your public notary. After the public notary witnesses your signatures, he’ll add a stamp or seal to the document. Last but not least, once the loan document is notarized, take care of the public notary’s fee. Usually, you won’t have to pay more than a nominal fee for a public notary’s service.
How does a notary sign a mortgage?
To do this, a notary signing agent will typically: Confirm all necessary mortgage documents are present. Check for any errors, such as incorrect names or figures. Ensure all required signatures, dates and initials are in place. Once the notary signing agent is satisfied that everything is in order, they’ll notarize the documents.
Do loan signings require notarization?
As a Notary Public who does loan signings, knowing which documents require notarization is imperative. If not done correctly, the transaction could have legal or monetary consequences for all parties involved. It is essential to review all loan documents before the signing appointment.