How a Notary Can Improve the Mortgage Closing Plus BONUS Tips For Mortgage Professionals

You’re at that time in the mortgage process where all your hard work is about to pay off, the closing. It’s time for you to collect all the documents, signatures, and disclosures required by law. One of the most pivotal aspects of the mortgage process is often overlooked: The Notary Public. A notary public represents only a minor portion of the overall mortgage lending and closing process, however he or she still plays a major role in getting your client’s paperwork processed and loan funded on time.

How a Prepared and Educated Notary Will Help Reduce the Stress of a Long Closing Process

Come to a signing prepared and on time. 📚

Preparation means many things for a notary.

Here are some ways a great notary prepares for an appointment:

• Arrive early to signing appointment and communicates with signer if they’re running behind due to traffic (before signing appointment)
• Comes equipped with the right supplies (blue or black pens as specified by escrow)
• Brings an extra set of loan documents in the event the signer makes a mistake

Gain trust of clients: Guide signer through the loan docs. 🔍

The Notary’s job on a home loan closing is to bridge the gap between mortgage professional or attorney and borrower. She can be the calming force that helps put nervous borrowers at ease, give context and guidance to the loan docs and give comfort to the attorney.

In other words, a Notary can’t just show up, stamp some notarial stamps, and sign the closing documents. A phenomenal notary needs strategy.

Here’s how:

• Go over the documents. Briefly summarize the context of the document and point at the verbiage that explains the purpose of the document.
• Make copies for the borrowers
• Confirm the borrowers bring everything they need at the closing table. Common items include:
  • Unexpired photo ID(s).
  • Checkbooks, credit cards and/or debit cards required to fund a loan
  • Confirm number of signers and attendance

Have a system in place for minimizing missed signatures, and following escrow instructions for specific loan docs. 📄

Firstly, I often say that the mortgage closing process will be much easier if the Notary has a system in place to minimize missed signatures, and by following escrow instructions for specific loan docs. Staying knowledgeable on loan document updates and commonly missed document is KEY!

In the business world, there’s an old saying that ‘knowledge is power.’ In my experience, this is also true when it comes to closing mortgage loans. Notary signing agents (NSAs) who educate themselves about today’s mortgage loan products, understand the challenges borrowers face, and work to streamline the mortgage loan closing process can leverage that knowledge to best serve their clients.

As a notary, I know how stressful closings can be. In a perfect world, every closing would be a smooth, seamless transaction. Unfortunately, that’s rarely the case. Most closings are long and arduous. Borrowers have more paperwork to sign than they can keep track of. Lenders have strict deadlines to meet. Agents and brokers are juggling multiple closings. And clients want answers, now.

This isn’t surprising, which is why a prepared, knowledgeable and detailed loan signing agent must look over the commonly missed documents that, if missed, may cause funding conditions and delay funding or expire a rate lock offer.

That’s why it’s so important for lenders, agents and notaries to understand the challenges each party faces in the mortgage loan closing process. Having a system in place for minimizing missed signatures, and following escrow instructions for specific loan docs can help.

The mortgage closing process sometimes feels like a moving target. Notaries can help make the process smoother and less stressful.

Here are tips for the notary, title companies, lenders, and borrowers.

Explain the mortgage process to your client.

• Let the client know what to expect.
  • This can help you and the client save time and money. For instance, if your client is concerned about moving costs, explain why mortgage lenders allow the seller to pay for the buyer’s moving expenses.
• Let your client know what to expect from the title company.
  • This is especially true for out-of-state closings. Educate your client on title insurance, title searches, and title commitments.
• Help your client understand loan terms and pricing.
  • Explain the difference between points and interest. Explain how loan fees are calculated. If the client is buying or refinancing a home, encourage the client to ask about prepayment penalties.
• Help your client understand lender policies.
  • Explain how title insurance work, the different loan programs, and how interest only loans work.
    • Loan programs can include:
      • Conforming
      • Non-conforming
      • Adjustable-rate mortgages
• Explain the Notary role.
  • Let your clients know their notary’s role. This includes disclosing the information regarding the notary’s:
    • Duties
    • Fees
    • Role in preparing prior to the closing appointment.

Looking for a preferred notary to close your loan files in Los Angeles or Orange County?

Get a quote for your next closing appointment today! Click here to get in touch with us or schedule your next closing.

Source:

Sandy Gadow

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