Finally, you’re about to sign the papers and close the deal on your first home. You can’t wait to be called a homeowner and go into renovation mode. The only thing left is preparing for the real estate closing, which will the signing of many documents; before that happens, you should know what documents need to be authorized.
Who Is Authorized To Be A Signing Agent?
In a real estate closing, notarizing some of the documents are required. However, instead of a notary public, people who are tasked to notarize these documents are called signing agents. These individuals are tasked by the state government to witness the signing of the important documents in closing a real estate transaction. Signing agents are expected to be impartial, neutral, and without bias or connection to either party and are chosen in random for each closing transaction.
Here’s an example of a website that offers signing agents who will come to you: https://www.superiornotaryservices.com/find-a-notary-near-you/
The Importance Of Notarizing Closing Documents
The purpose of notarizing a document is to make sure that one party is not being forced to sign documents against his own will. Another reason is to make sure that the identification of each party is legit and that both are acting in their own free will, as well as their real identities. The signing agent will then add his or her own signature, seal, and notary license in the documentation which officially notarizes the document.
Notarizing a document to detect and avoid fraud is one of the reasons why it is done. And because real estate transactions are important, it is mandatory to notarize some of the important documents in the transaction. It is also worthy to note that requirements may vary from state to state, so it would be wise to check.
Documents To Be Notarized In Your Loan Package
As boring as it sounds, one of the tasks needed to be done in order to finish the deal is to read a lot of paper and sign a lot of documents. The future homeowner is recommended to read and understand each sentence in the document. This is to make sure that you are not being scammed or given a document with different terms. Here are the usual five documents needed to be notarized in order to be enforced.
- The Mortgage Agreement
The mortgage agreement, or simply the mortgage, is the document which protects the lender if the borrower defaults from his or her loan. In this document, the property becomes collateral until the loan is fully paid. This is also one of the documents where, if not properly notarized, is invalid and cannot be enforced. Property description, price, the term of payment, interest, and the signature of the debtor is in this document.
- Deed Of Trust
A deed of trust is a document that officially transfers all the rights, titles, and interest of the property from the seller to the buyer. The reason why it is needed to be notarized is that it will need to be filed in the recorder’s office of the county.
- Subordination Agreement
A subordination agreement is a document where it makes a debt a priority. When the debtor has multiple debts, he or she will need to put other debts aside in order to prioritize the debt stated in this agreement. Both debtor, the creditor, should sign in this document.
- Signature Affidavit
A signature affidavit is a document that signifies that a signature is real and that it is not forged and not forced. There are times when the notarization requirement can be waived by the lender. A verification through an identification document, such as a driver’s license or a passport, is usually done by the agent. If the signature in the document is not the same as the signature in the ID, the agent will not push the notarization through.
- Owner Occupancy Affidavit
This document states that the new owner of the borrower will use the property as a primary residence and will not plan to move out or make the property rental. Owner occupancy affidavit should be signed and be notarized before it can be valid.