Loan Documents Flashcards
AFFIDAVIT OF DEBTS AND LIENS
This document makes statements about liens that the signer may have on the property
related to the loan. If there are no liens, often times the signer is instructed to write
“none” in multiple fields. The instructions are clear. (THIS DOCUMENT WILL LIKELY BE
NOTARIZED)
ATTORNEY REPRESENTATION NOTICE
This document explains that the attorney who drew the paperwork works for the
lender and not for the borrower.
BORROWER(S) ACKNOWLEDGEMENT OF RECEIPT OF
DISCLOSURES
By signing this document, the borrower acknowledges receiving the applicable
disclosures
BORROWER’S CLOSING AFFIDAVIT
This document should be reviewed by the borrowers before they swear or affirm to
the truthfulness of its contents. (THIS DOCUMENT WILL BE NOTARIZED)
CERTIFICATION AND AUTHORIZATION TO
RELEASE INFORMATION
This document certifies that the borrower has applied for the loan and authorizes
them to release information in connection with the loan.
CERTIFICATE OF TRUST
This document should be completely filled out by the signer. If the signer does not
remember the name of the trust or date it was created, this information can often be
found in a Grant Deed (when present), or in a trust rider which often goes after the
deed of trust, or on the actual signature lines. (THIS DOCUMENT WILL BE
NOTARIZED)
CLOSING DISCLOSURE
Also known as the CD, the lender must send this document to the signers before the
signing takes place. When you show this document, you can mention that they likely
received a copy of it by email. You can basically read the document sections out load,
as it is self-explanatory. Any questions on this document should be addressed to the
lender. When I present the CD I go over the loan amount, interest rate, and monthly
principal and interest. At the bottom half, it will show if the property taxes and home
insurance are kept in escrow accounts. If so, the addition of the escrow account will be
added to the principal and interest and be clearly stated under the total monthly
payment. I only go over the first page as the following pages mainly cover fees, and
any questions regarding fees cannot be answered by myself. If you need to contact the
lender or title company, the contact for them will be listed on the last page of the CD,
right before the signature line for the borrowers.
This is often one of the first forms in your package, or it can be placed in front as it has
very important information.
HAZARD INSURANCE DISCLOSURE
This document says that the borrower understands and agrees that the property
must be kept insured for the duration of the loan.
COMPLIANCE AGREEMENT
This document says that the borrower will fully cooperate if adjustments need to be
made related to clerical errors. (THIS DOCUMENT WILL BE NOTARIZED
CORRECTION AGREEMENT/LTD POWER OF ATTORNEY
This document often allows the lender to make corrections related to typos and
clerical errors. (THIS DOCUMENT WILL BE NOTARIZED)
DEED OF TRUST
This document is a security instrument, and it gets recorded with the County clerk. It
shows the borrowers on title of the property, while giving the lender a security interest
in the property, according to the amount borrowed.
(THIS DOCUMENT IS ALWAYS NOTARIZED)
DISBURSEMENT OF PROCEEDS
This document should be signed regardless of the signer having funds to receive or
not. They will have to make a choice on how they would like to receive any refund
due. If receiving a higher amount through wire, signers should contact their bank
ahead of time to confirm routing and account number.
(THIS DOCUMENT IS OFTEN NOTARIZED)
ERROR & OMISSIONS/COMPLIANCE AGREEMENT
This document says that the borrower will work with the lender, as needed, to
provide any additional information requested to complete the loan package. (THIS
DOCUMENT WILL BE NOTARIZED)
FAIR LENDING NOTICE
This document talks about The Housing Financial Discrimination Act of 1977
FEDERAL EQUAL CREDIT OPPORTUNITY
This document talks about creditors being prohibited to discriminate on the basis of
race, color, religion, national origin, sex, marital status, or age
FLOOD HAZARD DETERMINATION
This document may tell you if the Lender has determined that, according to FEMA,
the property IS or IS NOT located in a designated flood zone. It also adds that if the
property location becomes known as a flood zone, then flood insurance would be
required.
HOMESTEAD AFFIDAVIT
This document says that the property in question is the signer’s primary home,
homestead. (THIS DOCUMENT WILL LIKELY BE NOTARIZED)
INITIAL ESCROW DISCLOSURE
This document is basically a snapshot of the amounts being held in escrow for the
first year of the loan.
ITEMIZATION OF AMOUNT FINANCED
This explains the amount financed.
LIMITED POWER OF ATTORNEY
This is another document that allows correction of the documents for typos and
clerical errors. (THIS DOCUMENT WILL BE NOTARIZED)
MARITAL STATUS AFFIDAVIT
This document needs to be filled out by signers and usually comes followed by a
jurat. (THIS DOCUMENT WILL LIKELY BE NOTARIZED
NAME AFFIDAVIT
This document lists names that the signer has been known as. They should sign
next to the names that they have been known by, as that name. If there are typos or
incorrect names, signer may write “NEVER KNOWN AS” next to that name.
There are different versions of this form. If name variations are listed one next to the
other, then the signer can cross out wrong names with one line through and write
NKA next to it. (THIS DOCUMENT WILL BE NOTARIZED
NOTE
This document goes over the terms of the loan. I read the information I share with the
signers straight from this document. I tell them this is basically their promise to pay the
loan. I read their loan amount and interest rate, then I follow with their monthly
payment and first payment date. This document will also have the information about
where the payment should be sent to. It will likely say that there are no prepayment
penalties, and on the second page it says that the payment is not considered late until
after a certain date (usually the 15th of the month). After the grace period, there is an
interest fee on that monthly payment (usually 4-5%). When I get to that I may wrap up
as I hand them the note to look over themselves. The note is usually 2-3 pages and it
takes a signature on the last page. If the date is not clearly requested, the note should
not be dated. Nonborrowing spouses should not sign the note unless there is a
signature line with their name.
The monthly payment listed on the note is only the principal and interest. Any impound
accounts for taxes and insurance will not be listed there and will be an additional
amount to be added to what will be paid.
NOTICE OF ASSIGN, SALE OR TRANSFER OF
SERVICING RIGHTS
This document says that this loan may be sold or assigned to a loan servicer
NOTICE OF RIGHT TO CANCEL
When present in a package, this document allows the borrowers to cancel the loan
within three business days from signing it. For this purpose, we count Saturdays, but
not Sundays or federal holidays.
-Have the signer sign that they received the notice. They will only sign under “I wish
to cancel” if that is their desire. In that case I believe there would be no point on
moving forward with the appointment.
- You will receive two to three copies of this document, and usually only one is to be
sent back. If they mistakenly sign the “I wish to cancel”, they can keep that copy and
correctly sign the other one for you to send back.
NOTICE OF NO ORAL AGREEMENTS
This document says that there are no oral agreements between parties that are not
documented in the loan documents.
OCCUPANCY AND FINANCIAL STATUS AFFIDAVIT
This document states that the borrower acknowledges no additional liens, claims,
judgements or encumbrances against the property. It also says if the property is a
primary residence, second home, or investment property. (THIS DOCUMENT WILL
LIKELY BE NOTARIZED)
OWNERS AFFIDAVIT AND INDEMNITY
This document should be reviewed by the borrowers before they swear or affirm to
the truthfulness of its contents. (THIS DOCUMENT WILL BE NOTARIZED)
PAYMENT LETTER TO BORROWER
This explains when the first payment is due. If the borrower has taxes and insurance
being monthly held in escrow, it will also tell them how much is going to Insurance,
and/or taxes
REFINANCE AFFIDAVIT
In this document, signers confirm information about the property related to the loan.
(THIS DOCUMENT WILL LIKELY BE NOTARIZED)
SETTLEMENT STATEMENT
This statement will show the settlement charges involved in a particular loan. The fees
are self-explanatory.
This is often one of the first documents I present, as it has the final amount the
borrower is receiving (cash out transactions) or paying to close.
This document is produced by the title company, so you may call them if there is a
question.
You should always look at this form before the signing, and it may be wise to even let
your signer know ahead of time if they are getting a refund or will need to wire
money/write a check. Usually, personal checks are only accepted up to $1500, but this
varies from lender to lender. Also, in a cash out situation, it is wise for the signer to call
their bank and confirm their incoming wiring information. Often times, for larger
amounts, the routing and account number are not the same from their checkbook.
STATEMENT OF INFORMATION
This document needs to be fully completed by the signers. I ALWAYS place this
form at the very back of my package and put it back where it belongs at the end of
the signing.
This form requires a lot of information to be filled out by the signers, and I use the
time to start checking all the other forms signed at the appointment. I check for any
missing signatures, missing or wrong dates, boxes that need to be checked, and all
notary certificates.
SIGNATURE AFFIDAVIT
This document lists names that the signer may have been known as. Please sign as
stated by names listed. Signers should not sign by names that do not apply to them.
If it does not apply, they can write “never know as” on the signature line (THIS
DOCUMENT WILL LIKELY BE NOTARIZED)
SURVEY AFFIDAVIT
This document relates to facts about the property survey. (THIS DOCUMENT WILL
LIKELY BE NOTARIZED)
TAX AFFIDAVIT
This document talks about taxes related to the property. (THIS DOCUMENT WILL
LIKELY BE NOTARIZED)
UNIFORM RESIDENTIAL APPLICATION
This is a copy of the loan application. Some of the information may be outdated as it
dates back to the beginning of the loan process. This needs to be signed.
There are different versions of this form. Look through it so you don’t miss any
signature line or initials. Initials are often required at the bottom of this form.
USA PATRIOT ACT FORM
This relates to identification of the borrowers. It is required. You, as a signing agent,
will fill this out as you look at the signer’s ID and secondary identification document.
You will sign and date this form at the signing appointment. If
there is someone else’s name on the signature line, you have to cross it out and add
your name followed by “, Notary Signing Agent”.
WIRING INSTRUCTIONS
This document should be placed in front of the signer’s copy, if they need to bring
cash to close (if they owe money at the closing of the loan). They will likely discuss
with their lender how quickly they need to wire, but in general any property with no
notice of right to cancel (NORTC) should wire ASAP/same day. Properties that have
NORTC can wire before their recission period, always keeping in mind that if they
don’t wire before then, funding of their loan will be held. This document most often
than not, does not require a signature. If funds are due, it is a good idea to write
down on this page the amount to be wired, which is the total due from borrower
listed in the settlement or closing statement. This facilitates the borrower in case
they are taking only that page to the bank to create a wire transfe
W9
Signer will confirm the social security number listed and sign and date below
4506
This form is required to be signed so the lender may collect a copy of the signer’s tax
return from the IRS. This form has a box on the left side above the signature that needs
to be checked by the borrower
Promissory Note or Real Estate
Note
The note states how much you
have borrowed [point to it], the length of
time that you have to pay it back [point
to it], and the interest rate [point to it].
Truth in Lending Disclosure
Statement
This explains all costs of
your loan
APR & Finance Charge Summary
This explains the cost of your loan
Borrower Affidavit
A Borrower Affidavit is a sworn statement by a borrower affirming certain facts about their financial status, property, or loan details, typically used in real estate transactions to verify information provided during the loan process.
Please review
and state if you swear (or affirm) to the
truthfulness of the contents of the
document. (Notarize.)
Document Correction Agreement
This says that you will work with the
lender to provide any additional
information or funds required, if any, to
complete the loan package. (Notarize.)
Collateral Protection Insurance
Notice
You understand that you must
keep the property insured.
