Notary signing agents may run across many types of loans. However, there are some core common loans all notary signing agents should know. Being prepared and understanding various loans and loan documents is key to experiencing and conducting a successful loan signing.
A refinance loan signing is one of the lengthier types of loan signings notary signing agents may encounter since it can average 100-200 pages, with 8-14 notarizations required.
A refinance loan allows the borrower to pay off their current loan and receive a new loan. Most homeowners will get this type of loan to lower their interest rate or receive some other loan incentive perk such as taking cash out based on the equity they currently have in the home.
Some of the common documents in a refinance package include the closing disclosure, note, deed of trust and riders, notice of right to cancel, errors and omissions, uniform residential loan application, affidavit of occupancy, first payment letter, US Patriot Act form, compliance agreement, and signature/name affidavit.
Reverse Mortgage Loan
Another loan signing that is even lengthier than a refinance loan is the reverse mortgage loan. The reverse mortgage loan signing may have 200-300 pages with 15-20 notarizations. This is because with reverse mortgages there are typically two deeds and two notes.
To get a reverse mortgage the homeowners must be 62 years of age or older. If homeowners have considerable home equity, then they can borrow against the value of their home and receive funds. No loan payments are made. Instead, the loan balance becomes due when the borrower dies, moves out permanently, or sells the home.
Another lengthy loan is a purchase loan. Again, there will be 100-200 pages, with 10-20 notarizations. This common loan type is self-explanatory-it’s a loan to purchase a home.
The loan documents for a purchase loan are about the same as the documents in a refinance. This is because with both loans borrowing money takes place. However, there is no Notice of Right to Cancel in this package.
The seller package loan is another common loan all signing agents should know. This loan is for when a homeowner sells their home.
This type of notary signing does not involve any loan documents. Therefore, this type of signing may contain anywhere from 20-50 pages with a minimal number of notarizations involved, maybe 1-3.
Documents include the closing disclosure, ALTA Settlement statement, warranty deed, 1099-S Tax Reporting Information, seller affidavit, bill of sale, and statement.
HELOC stands for Home Equity Line of Credit.
A line of credit depends on the amount of equity in the home. Homeowners may do a HELOC because they need a large amount of money. They may want to remodel their home or even just have that reassurance that they will have money when or as they need it, or in case of an emergency.
A loan modification may normally take place when a homeowner wants to reduce their interest rate or perhaps extend the loan term to receive a lower monthly payment. In any event, the original loan is modified and reflects new terms, thus the name loan modification. The loan modification will be a quick loan signing with only 30-50 pages.
Finally, there is the commercial loan. There are many different types of commercial loans. These types of loans can vary in the number of documents ranging from 150-500 pages and 50 or more documents to notarize. Gaining a lot of knowledge regarding commercial loans is recommended before performing this type of loan signing. There can be multiple signers and properties involved. Knowing how to read a HUD-1 is essential.
So, there you have the most common types of loans that you may encounter as a notary signing agent. Learning about these loans as well as the loan documents involved in each one will put you in a good position to handle your loan signings with ease. Just remember there are always exceptions to the rule and every now and then you may run across a special situation or circumstance when it comes to loan signings. It’s best to be prepared as possible by learning all you can about the many and various types of signings a signing agent can do.