A loan closing notary, also known as a real estate notary or loan signing agent, is someone who guides borrowers through the process of signing documents for their mortgage. They are responsible for witnessing and validating the borrower’s signature on the paperwork to ensure that all legal requirements are met. Loan closing notaries play an important role in the purchase or refinance of a home, so it is essential to understand what they do and why they are necessary.
Real estate closings come in all shapes and sizes, each requiring an understanding of the legal documents involved and nuanced considerations of financing. Two broad types of closings exist: residential and commercial. Residential closings refer to those transactions involving residential properties. A seller transfers ownership to a buyer after signing a ‘deed’ — a binding legal document that denotes who exactly owns the property. Most residential closings also involve a mortgage or loan; when signing the loan agreement, the borrower consents to replay it with interest until the entirety of the loan is repaid. Examples of closing types are seller, buyer, refinance, home equity line of credit (HELOC), and reverse mortgage. Closing on a commercial property similarly involves signings of various contract documents, but can often be more complicated due to negotiations over associated leases or other contingent agreements.
A loan closing notary’s primary responsibility is to witness and validate a borrower’s signature on all loan paperwork during the closing process. This includes ensuring that the borrower has read and understood each document they are signing, as well as confirming their identity by requiring valid identification such as a driver’s license or passport. The notary also ensures that all financial documents have been filled out correctly and verifies that there has been no fraud involved in any part of the transaction.
The loan closing notary also plays an important role in protecting borrowers from having their signatures forged or being taken advantage of by unscrupulous lenders or brokers. For example, if a lender attempts to change any language in the paperwork after it has already been signed by the borrower, it would be considered fraud and could be challenged in court if witnessed by an impartial third party such as a loan closing notary. In this way, loan closing notaries serve an important function in preventing fraud and making sure that everyone involved understands their rights and obligations throughout the process of purchasing or refinancing a home.
In addition to these duties, loan closing notaries may also provide additional services such as reviewing documents for accuracy or providing basic legal advice related to real estate transactions. They must stay up-to-date on all relevant laws and regulations regarding mortgages and other real estate transactions in order to ensure compliance with local laws. Some states may even require certain types of training before becoming certified as a loan signing agent.
Loan closing notaries play an important role in helping people purchase or refinance their homes by witnessing and validating signatures on mortgage documents, verifying identities, preventing fraud, and providing legal advice whenever needed. It is essential for anyone considering buying or refinancing property to have access to experienced professionals who can guide them through the entire process with confidence, clarity, and assurance that everything will be done correctly. Whether you’re looking for your dream home or just trying to get your finances back on track with a refinance, make sure to contact us to schedule a reliable loan closing notary for your next real estate closing who can help make your dreams come true.