There are nearly 4.4 million notaries in the United States and many of them are also loan signing agents. But how do they differ? Here is everything you need to know.
As a notary signing agent, you’ll likely spend a lot of time handling real estate and lending document packages While every signing has its own nuances, most fall into some common categories based on the type of loan or transaction
Knowing what to expect with different loan signing assignments can help you prepare In this comprehensive guide, we’ll explore the 10 most frequent types of packages notary signing agents handle.
1. Mortgage Refinances
Refinances are one of the most common types of loan signings. A refinance allows a homeowner to pay off their existing mortgage with a new loan, often to get a lower interest rate or take cash out.
Refinance packages tend to be pretty straightforward. The borrower agrees to the new loan amount, interest rate, and repayment terms. Expect around 125-200 pages with 8-15 documents to notarize. You may need to scan some documents back quickly.
Key documents:
- Notice of Right to Cancel
- Promissory Note
- Deed of Trust
- Truth in Lending Disclosure
2. Home Purchase Loans
Next to refinances, purchase loans are the second most frequent loan signing. This is when a buyer takes out a mortgage to purchase a property.
The documents are similar to a refinance. Expect 125-200 pages and 10-15 notarizations. Scanning some documents back right after signing is common.
Key documents:
- Deed of Trust
- Promissory Note
- Truth in Lending Disclosure
- Affidavits
3. Reverse Mortgages
Reverse mortgages allow homeowners aged 62+ to convert home equity into cash or a line of credit. Borrowers receive payments and don’t need to repay the loan as long as they live in the home.
These loans involve sizable packages, often 200-250 pages. You’ll notarize around 15 documents. Reverse mortgages take more time as borrowers are older.
Key documents:
- Loan Agreement
- Promissory Note
- Deed of Trust
- Right to Cancel
4. Cash-Out Refinances
Borrowers can tap into their home’s equity through a cash-out refinance. This converts built-up equity into cash the homeowner can access right away.
Packages range 125-200 pages with 10-15 notarizations. Scanning back documents quickly is very common.
Key documents:
- Deed of Trust
- Promissory Note
- Notice of Right to Cancel
- Affidavits
5. Home Equity Loans/Lines of Credit
Home equity loans allow homeowners to borrow against the equity in their home. These may involve 125-150 pages and 15-20 notarizations.
Packages vary quite a bit though. Home equity lines of credit (HELOCs) often have far fewer documents.
Key documents:
- Deed of Trust
- Promissory Note
- Right to Cancel
- Disclosure Statements
6. Loan Modifications
When an existing loan is revised, it’s called a loan modification. Common reasons include lowering payments, adjusting the interest rate, or extending the repayment period.
Modifications run 35-40 pages with just a few documents to notarize. Fees are lower too – around $40.
Key documents:
- Modification Agreement
- Amended Promissory Note
- Loan Modification Disclosure
7. Commercial/Business Loans
Notary signing agents are often needed for commercial loans involving businesses, office buildings, retail space, apartments, and other investment properties.
Commercial packages range widely in size, from 150-500+ pages. You may notarize 50+ documents for multiple signers and business entities.
Key documents:
- Promissory Note
- Deed of Trust
- Guaranty Agreements
- Affidavits
8. Refinance Closing Packages
Some notary assignments involve signing just a portion of a refinancing transaction. This may include documents needing signatures or notarization that couldn’t be signed at closing.
These partial packages could be as few as 5-10 pages, or dozens of pages. The signing is usually quick with a limited number of documents to notarize.
Key documents:
- Deed of Trust
- Notice of Right to Cancel
- Lender and Escrow Instructions
- Affidavits
9. Seller Real Estate Packages
When a home seller needs documents notarized, signing agents may get assigned a seller real estate package.
These are just 20-30 pages, with 1-3 documents to notarize like the deed, bill of sale, disclosures, and signature affidavits. The appointment time is inflexible but the signing is fast.
Key documents:
- Real Estate Purchase Agreement
- Deed
- Seller Disclosures
- Signature Affidavits
10. Deed Transfers and Recording Documents
Lenders and title companies often need assistance getting documents notarized for recording or transferring property ownership.
This may include just a couple documents like a deed, bill of sale, death certificate affidavit, or property transfer affidavit. Fees are low but the process is very quick.
Key documents:
- Deed
- Affidavits
- Death Certificate
- Real Estate Transfer Declaration
Preparing for Each Loan Signing Appointment
Now that you know the most common types of loan and real estate packages notary signing agents handle, you can prepare more effectively.
When you get assigned a new signing, ask the hiring company a few key questions:
- What type of signing is this? (purchase, refinance, reverse mortgage, etc.)
- Approximately how many pages is the package?
- How many documents need notarization?
- Do any documents need to be scanned back right away?
Knowing the loan signing category tells you a lot about what to expect. It also helps you plan the appointment duration and bring the right notary supplies.
Of course, each signing has its own unique requirements, so always thoroughly review the documents before your appointment. But being familiar with these common categories makes it easier to handle each package smoothly and professionally.
How to Build Your Loan Signing Business
If you enjoy working with lending documents, a loan signing business can be rewarding and lucrative. Here are some tips:
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Get trained and certified specifically in loan document signings. Take courses on mortgage loan documents to understand each one and how to notarize it properly.
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Build a professional website advertising your loan signing services. Highlight your expertise in real estate and lending documents.
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Reach out to local mortgage lenders, title companies, and escrow offices. Introduce yourself and ask to be added to their notary referral list.
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Join professional associations like the National Notary Association and American Society of Notaries. Access their referral directories.
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Get active on social media and create a Notary Signing Agent profile on sites like NotaryRotary or Notary.net.
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Ask signing services and loan signing agents in your area to mentor you. Shadow them on signings to gain experience.
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Once trained, start slow with easier transaction types like loan modifications and work your way up to larger purchase and refinance packages.
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Provide exemplary customer service on every signing. Go the extra mile so clients remember you and request you for future signings.
By specializing in loan signings and real estate documents, you can build a lucrative businessnotarizing what you enjoy most. Consistently deliver top-notch service and signing expertise and your reputation will grow.
What is the difference between a loan signing agent and a notary public?
All signing agents are notaries â but not all notaries are loan signing agents. Becoming an LSA requires additional certification and training. The job of a notary is fairly limited in scope, so they stamp a wide variety of paperwork. LSAs, on the other hand, are trained to process loan documents. The mortgage and financial services industries tend to involve more complicated and sensitive transactions, which is where the expertise of an LSA becomes valuable.
Like a notary, LSAs may not offer legal advice, clarification of terms, or interpretation of the documents they assist with. They are simply brought in at the final stages of the loan to assist with document handling and processing. And because LSAs receive access to private financial information about borrowers, they are required to undergo background checks on an annual basis. This prevents mortgage fraud and helps keep consumersâ information secure. In addition to these periodic background checks, LSAs are trained to process loan document packages. This involves printing loan documents correctly, using a mailing service to return signed documents, and following any additional instructions required by the lender or title company.
What is a loan signing agent?
Notaries and loan signing agents (LSAs) provide essential services for legal transactions. A loan signing agent notarizes and certifies financial and legal documentation related to loan documents. A notary is a public officer who is certified to witness and confirm the signing of documents. Whenever a contract crosses a desk, the need for a notary probably isnât far behind. Hereâs a few examples of documents in various industries that often require a notary:
- Financial services: deeds, loans, mortgage closing documents, auto title transfers
- Legal services: custody agreements, wills, trust, power of attorney, affidavits
- Business services: employee contracts, leases, construction agreements
The 5 most COMMON types of Loan Signings for Loan Signing Agents! #notarysigningagent #notarypublic
FAQ
What are the most common loan signings?
What type of notary makes the most money?
How much does a loan signing agent make in California?
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Annual Salary
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Hourly Wage
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|
Top Earners
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$78,952
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$38
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75th Percentile
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$69,100
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$33
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Average
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$54,283
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$26
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25th Percentile
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$41,400
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$20
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What are the different types of loan signings?
Here’s what you need to know about each type of loan signing. 1. Refinance This is probably the most common loan signing you will encounter. A refinance is when a borrower pays off their current loan with a new loan.
Are all loan signing assignments the same?
Many new Notary Signing Agents believe that all loan signing assignments are the same. In fact, NSAs can be asked to handle many different types of assignments. As an owner of nationwide signing service, I see 5 types of mortgage packages most often. These are:
How do you sign a loan?
Execute the documents Present the most relevant documents that answer the most common questions. Common loan signing documents to present include: Direct the borrower where to sign and notarize the documents. 3. Review for blanks Look at all of the documents and check for missing signatures, initials, dates and Notary seal imprints.