Notary Signing Agent Questions and Answers 100% Verified

Notary Signing Agent Questions and Answers 100% Verified 1003 - Uniform Residential Loan Application Standard form completed by borrowers when applying for a mortgage loan. A borrower lists all assets and liabilities on the form, also includes a section for income, including two years of employment history and monthly household income. ACKNOWLEDGEMENT Formal declaration before a public official that one has signed a document prior to recording real estate documents, such as grant deeds and deeds of trust, a Notary Public acknowledges the persons signature on the document. Most documents that require notarization contain the acknowledgement on the document. Sometimes the notary will have to attach a separate acknowledgment to a document. ALLONGE APR Annual Percentage Rate: describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate. APR has been called the "mathematically-true" interest rate for each year ARM: Adjustable Rate Mortgage A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with the market conditions. Amortization the reduction of a loan balance through payments made over a period of time. reduce or pay off (a debt) with regular payments. Borrower (Mortgagor) One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full. CERTIFICATE OF ACKNOWLEDGMENT Ensures that the signer of the document is indeed the person named in the document. JURAT An attached written statement of the notary public that the Oath or Affirmation was taken before the notary public. Must contain certain information. i) It must contain the State and County where the document is executed. ii) The date of execution iii) The names of the signing party(s). iv) It must also contain the printed name and signature of the notary public v) The seal (stamp) of the notary public vi) The expiration date of the notary public's commission. OATH A promise that one is making a true and correct statement to the best of their knowledge. i) Ask the signer to attest to the truth of the information given.( Accuracy) ii) Ask the signer to attest to the truthfulness of who they are. (Identity) iii) Ask the signer to attest that they did not make any false statements (Truth) AFFIRMATION An oral or written declaration made by a person who has an objection to taking Oaths, certifying under the penalty of perjury the declarations are true. CONTENTS i) They must contain the State and County where the document is executed. ii) The date of execution iii) The names of the signing party(s). iv) It must also contain the printed name and signature of the notary public v) The seal (stamp) of the notary public vi) The expiration date of the notary public's commission. Typical Oath "Do you solemnly swear that any statements made when signing this document are TRUE to the best of your knowledge and belief so help me God?" Typical Affirmation "Do you solemnly, sincerely and truly declare and affirm that the statements in this document are true and accurate to the best of your knowledge and belief, and this you do under the penalties of perjury?" Notarized document There are several items that must be included on the document in order to be notarized. i) The name of the signer must be typed, printed or stamped below the signature line. ii) The signature must match the name of the signer on the documents iii) The printed names of any witness(s) is to be printed under their signature line iv) And the notary's printed name must appear below their signature line as well.. Affidavit written statement made under oath NBS - NON BORROWING SPOUSE DOCUMENTS is a spouse who is on the title to the property. However the credit or employment of this spouse was not taken into consideration when processing the loan so they are not obligated on the loan. They will NOT be signing the Note, the 1003 or most of the documents. 1. Mortgage or Deed of Trust 2. All Riders attached to the Deed of Trust or Mortgage. 3. Truth in Lending Disclosure 4. Notice of Right to Cancel Power of attorney a legal document authorizing someone to act on your behalf. If the grantor is John Doe, and the attorney in fact is Sally Smith, here is how Sally signs on behalf of John. (1) John Doe, by Sally Smith, his attorney in fact (2) Sally Smith, as attorney in fact for John Doe (3) Initials: jd by ss AIF or jd by ss atty in fact (4) Initials: ss aif for jd or ss atty in fact for jd. The title company is responsible for verifying its validity and the lender to accept it. RESCISSION termination of contract. borrower's right to cancel a loan within 3 business days after the date of signing their loan documents. Every state should adhere to this federal law. begin counting BUSINESS days after the date of the signing. Saturday is considered a business day so you count Saturday. Sunday is never a business day. COMMITMENT LETTER provides the borrower with a summary of all terms of the loan being promised to him by the lender, included are the guaranteed interest rate, monthly payment, repayment term and interest rate. CONFIRMATION The email sent to the Notary which provides all of the information about their assignment. This would include the name, address and contact information for the borrower. This form will also contain instructions which the notary must read and follow. DEED A document that transfers ownership of property from one party to another. Formal written document transferring title to real estate DEEDS OF TRUST/MORTGAGES A three-party instrument between a borrower, called the trustor, a lender, called the beneficiary, and a neutral third party called a trustee. the instrument that is recorded to give added assurance that the promissory note will be paid when due. Places a public lien on the property. NOT required to use the court system or the sheriff's office. Also, see Mortgage Escrow Officer Responsible for acting as a third unbiased party between Buyers, Sellers, and Lenders. They are responsible for the exchange of property and money between the parties once all requirements have been met, per instructions from the parties involved in the transaction. Escrow (impound) account Typically refers to an account set up by a lender in which funds to pay for real estate taxes and homeowners insurance are deposited as part of the borrower's monthly mortgage payment, then disbursed as tax and insurance payments come due. Essentially, an impound or escrow account is a fancy term for a "savings account for taxes and insurance". Fixed Rate Mortgage A mortgage in which the interest rate does not change during the entire term of the loan. FHA (Federal Housing Administration) Insured loans for building and repairing homes. The goals of this organization are to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage market. FKA: Formerly Known As An example might be a woman who used a maiden name as her legal name and is now married and using her married name as her legal name. FLOOD CERTIFICATION A certificate which has the determination as to whether or not a property is in a flood zone or not. If so the lender will require the borrower to purchase flood insurance. W9 An IRS form, also known as "Request for Taxpayer Identification Number and Certification", which is used by an individual defined as a "U.S. person" or a resident alien to verify his or her taxpayer identification number (TIN).report income paid, real estate transactions, mortgage interest paid, acquisition or abandonment of secured property, or cancellation of debts. GFE Good Faith Estimate This document includes the breakdown of approximate payments due upon the closing of a mortgage loan HUD Housing and Urban Development HUD 1 This is a document outlining the actual costs of the transaction as well as a listing of the parties receiving the funds and fees. (HUD-1A for Refinances) (No longer used for most mortgages). Borrowers may compare their Good Faith Estimate to the HUD-1 Settlement Statement and ask their lender or broker about any changes. LOAN OFFICER This is the person that works with the borrower in finding the best type of loan. They also work through the entire transaction in coordinating the loan process with the underwriter, real estate agent, appraiser, borrower and title officers. LOAN APPLICATION The Uniform Residential Loan Application (also known as the 1003 or ten o three), is basically a summary of all the information the mortgage company used to determine the loan terms they should offer the borrowers. An application that gives a lender information about the purpose of the loan as well as the applicant's financial condition. MORTGAGE Security instrument. This is basically the same document as the deed of trust. The mortgage represents the borrower's pledging their homes, security or collateral in exchange for the loan they are receiving from the mortgage company. NOTE The note is a fancy way of saying "contract". A signed instrument acknowledging a debt and a promise to repay per the terms outlined. The important terms contained in the note, which must be reviewed with the borrower, are interest rate, term of loan, monthly mortgage payment, type of loan (fixed rate, arm, etc.), date of the loan and personal guarantors (those responsible for the loans repayment). The note must be signed by all guarantors Notice of Right to Cancel In a refinance transaction on a primary residence, the borrower gets three business days (not including Sundays and some holidays) from the day they sign loan documents to cancel the loan if they want. This is a law and cannot be waived. The day they sign is not to be included. PREPAYMENT PENALTY A charge for the payment of a mortgage or deed of trust note if it is paid prior to the actual due date. RECONVEYANCE This is the form that the Trustee on a Deed of Trust issues when the Beneficiary has been paid off. Removes the lien from the property. SECURITY INSTRUMENT: Deed of Trust or Mortgage. SECURITY INSTRUMENT: Deed of Trust or Mortgage. the written instrument by which a debtor pledges property as collateral to secure a loan. 1. It records who actually owns the property. 2. It records the amount the borrower is borrowing from the bank, also known as the lien amount. 3. It records who is lending the money, (lien holder) 4. It records the legal description of the property. (street address) Avenue. The legal description is how the county recognizes the property location via the lot boundaries and lot location within the county. 5. it states the rules and regulations to which the new property owner has to abide Settlement Agent Person that manages the events of the closing. SETTLEMENT AGENT: Usually the Escrow Officer. Escrow An escrow company is a licensed neutral third party that distributes legal documents and funds on behalf of a buyer and seller. More simply stated, they are the middle man. They are the authority to make sure that the seller, lender, and borrower all follow through on their agreed-upon terms. SIGNATURE NAME AFFIDAVIT Each borrower must sign a name affidavit that includes all legal names by which that borrower is know, promising that he/she is all of those people and he/she does not go by any other name of any legal documents Signing Agent A notary who has been educated in the process of assisting borrowers with the signing of their loan documents and the notarization of those documents. Sole and Separate Property Property owned before marriage or that acquired afterward by gift, bequest, devise or descent. Property which a spouse has no legal right to ownership. TITLE COMPANY A company that researches the title of a property for a prospective buyer and makes sure that all is in order. It also provides title insurance to cover any losses due to improper titles. TRUSTEE ON THE DEED OF TRUST: This is a designated company, usually a title company who prepares and records the Deed of Reconveyance when the loan has been paid off. Truth in Lending Disclosure A statement creditors must give to consumers informing them of the costs and terms of credit. Among the items disclosed on the Truth-in-Lending Disclosure are the APR (Annual Percentage Rate). Estimated Finance Charge, Estimated Amount Financed, and Estimated Total Payments of the life of the loan. Also show on this document are any Prepayment Penalty terms, Late Payment provisions and other financial items. VESTING The manner in which the owners of the property have taken title such as joint tenants, community property, a single person or tenants in common. WITNESS STATE When witness signatures are also required on documents as mandated by certain states. Lien a right to keep possession of property belonging to another person until a debt owed by that person is discharged. Home Equity The current market value of a home minus the remaining mortgage balance Principal The amount of money borrowed. The amount of debt, not counting interest, left on a loan. Refinancing the process of obtaining a new mortgage on a home to get a lower interest rate. The process of paying off one loan with the proceeds from a new loan secured by the same property. Title Document that gives evidence of ownership of a property. It also indicates the rights of ownership and possession of the property. Individuals who will have legal ownership of the property are considered "on title" and will sign the mortgage and other documentation. Default Lenders only lend on a house if they have the right to take the house from the borrower if the borrower fails to pay back the loan on the terms that were agreed upon. Who is responsible for filling in the Patriot Act form? signing agent fills out to confirm the identity of the borrower demand letter A letter in which one party explains its legal position in a dispute and requests that the recipient take some action (such as paying money owed).