How to Present Loan Documents to the Borrower
Select a convenient and uncluttered location, such as a dining room table. Your goal is to start an organized, fluid clockwise or counterclockwise flow of the loan documents being signed and then returned back to you. Give each signer a pen with which to sign the loan documents.
Never give the borrower their copy of the loan package until the signing is completed.
Before beginning the loan signing, say to the borrower, “I am not able to answer any ‘Why?’ questions pertaining specifically for your loan. Any ‘Why?’ questions need to be addressed to your loan officer. I can answer (some) ‘What?’ questions, in regards to the purpose and meaning of certain loan documents. After signing you will have three business days to review your loan documents. During this time you may cancel for any reason.”
Inform the borrower that you will present them their copies of the loan documents when the signing is complete. Then hand each document to the borrower and identify where the borrower(s) must sign, initial, date, or fill in information.
Loan Presentation – Option 1
Show the borrowers the documents listed below before you start the signing. Take the loan documents that need to be signed, and place these in front of the borrower. Identify pertinent information located in these documents and present them as follows:
- The Note – show borrowers the loan amount, interest rate, etc.
- Deed of Trust (Mortgage) – borrowers need to confirm name and address are correct
- Right to Cancel – explain this document section
- Closing Disclosure (Borrowers are sent this information 3 days before the signing date)
- Impound of Escrow Account (if applicable)
Loan Presentation – Option 2
Present each document and get it signed before presenting the next document. Usually, each document will have a title at the top of the page. State the name of the document as you place it before the borrower, and point to the location where they need to sign or initial. Make sure that they know to sign exactly as their name appears on the document.
Special Note: You can only identify what the borrower is signing and where they can find certain information. Never give your interpretation of the documents. If the borrower asks questions pertaining to their loan, tell them they need to speak to their loan officer.