Notary Signing Agent Loan Documents
A loan package typically consists of various documents required for a loan transaction, especially in the context of real estate transactions such as mortgages or home loans. The specific documents included in a loan package may vary depending on the type of loan and the lender’s requirements. However, some common documents found in a loan package are:
1. Loan Application: The loan application contains detailed information about the borrower, co-borrowers (if any), and the property being financed.
2. Loan Estimate (LE): This document provides an estimate of the loan terms, interest rate, closing costs, and monthly payment. It helps borrowers understand the costs associated with the loan.
3. Closing Disclosure (CD): The CD provides final details about the loan terms and costs. It is typically provided to borrowers three business days before closing.
4. Promissory Note: The promissory note is a legal document that outlines the borrower’s promise to repay the loan and includes the terms of repayment.
5. Mortgage or Deed of Trust: This document serves as security for the loan, giving the lender the right to take possession of the property if the borrower fails to repay the loan.
6. Truth-in-Lending Act (TILA) Disclosure: This document provides important information about the loan’s terms, including the APR (Annual Percentage Rate).
7. Initial Escrow Disclosure: If the loan includes an escrow account for taxes and insurance, this document outlines the initial escrow payment amounts.
8. Title Insurance: Title insurance protects the lender and the borrower from any defects in the property’s title.
9. Home Appraisal: The home appraisal is an assessment of the property’s value, which helps determine the loan amount.
10. Verification of Employment (VOE): The lender may request this document to confirm the borrower’s current employment and income.
11. Verification of Deposit (VOD): The VOD verifies the borrower’s funds in a bank account, often used for down payment and closing costs.
12. Pay stubs: Lenders may require recent pay stubs as proof of income.
13. W-2 Forms: Borrowers may need to provide W-2 forms as proof of income for the previous two years.
14. Bank Statements: Lenders may request bank statements to verify the borrower’s financial history.
15. Insurance Documents: Proof of homeowner’s insurance and, if applicable, flood insurance may be required.
These are some of the common documents you may find in a loan package. It’s essential to carefully review and understand all the documents before signing to ensure you are aware of the loan terms and conditions. Always consult with your lender or a qualified professional for personalized guidance and advice during the loan application and closing process.