Mortgage loan document types and the loan signing process for notaries who work as loan signing agents.
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- What is a promissory note?
- A legal document in which the borrower promises to repay a specific loan amount with interest.
- What is the difference between a promissory note and a mortgage?
- The note is the borrower's debt obligation; the mortgage is the lien that secures that obligation.
- What is a mortgage?
- A legal document that gives the lender a claim against the property if the loan is not repaid.
- What is a deed of trust?
- A document similar to a mortgage but involving three parties: borrower, lender, and a neutral third-party trustee.
- What does the Closing Disclosure contain?
- Final loan terms, monthly payment, interest rate, fees, and closing costs, provided at least three days before closing.
- What is a Loan Estimate?
- An initial estimate of loan terms and costs that must be provided within three days of loan application.
- What does TILA require?
- The Truth in Lending Act requires lenders disclose credit terms and costs in a clear, standardized format.
- What does RESPA require?
- The Real Estate Settlement Procedures Act requires uniform loan disclosure and prohibits kickbacks in real estate transactions.
- What is title insurance?
- Insurance protection against losses from defects in property ownership or recorded title.
- What is a flood certification?
- A document that determines whether the property is located in a federally designated flood zone.
- What is Form 1003?
- The Uniform Residential Loan Application, the standard form borrowers complete when applying for a mortgage.
- What is Form 4506-C?
- An IRS authorization form allowing the lender to obtain the borrower's tax return transcripts for verification.
- What is an affidavit of occupancy?
- A sworn statement confirming that the borrower intends to occupy the property as their primary residence.
- What does a preliminary title report show?
- The results of the title search, including the property's ownership history and any title issues.
- What government-issued identification is required for loan signings?
- A photo ID such as a driver's license, passport, or military ID to verify the signer's identity.