Essential Loan Documents Every Signing Agent Should Know

Navigating loan signings confidently is essential for a signing agent, and understanding the core loan documents is a key part of that confidence. Here’s a guide to the most common documents you’ll present to borrowers, complete with descriptions and tips to help you master each. You’ll look and sound like a seasoned professional from day one!

Core Loan Documents

1. Notice of Right to Cancel
As the borrower, you have three days to review these documents and change your mind. The final day to cancel is midnight of the third business day. If you choose to cancel, contact your lender. You’ll sign and date this notice to acknowledge you understand your right to cancel, with an option to sign again should you wish to proceed with the cancellation.

2. Deed of Trust (Mortgage)
This document confirms your ownership of the property and indicates that the lender has a security interest. It will be recorded in the public records of the county.

3. Note
The Note shows the amount of your new loan, the interest rate, the first payment due date, the final payment date, and details about prepayment options. Monthly payments are due on a specified date each month.

4. Closing Disclosure
This document summarizes the total loan amount, interest rate, principal, and interest payments, as well as any prepayment penalties. It also includes your monthly payment amount, including escrows if applicable.

5. First Payment Letter
This document reiterates the payment amount, including escrow amounts for taxes and insurance if they are collected.

Additional Loan Documents (Alphabetized)

1003 - Uniform Residential Loan Application
The final printed version of your loan application, which you’ve likely completed virtually or over the phone. Sign it here to make it official.

4506-C
Authorizes the lender to obtain your tax return transcripts. If you file jointly, each borrower will complete their own form.

Affidavit of Occupancy
In this document, you’ll declare how you intend to occupy the property, selecting the applicable option.

Appraisal Receipt
Acknowledges you’ve received a copy of any appraisal report. Sign, date, and check the applicable box.

Borrower's Affidavit
An affirmation that the information in these documents is accurate.

Correction Agreement Limited Power of Attorney
Grants the lender permission to correct clerical errors if necessary, without changing the loan terms.

Errors & Omissions / Compliance Agreement
If there are clerical errors, you agree to sign any necessary corrections.

Escrow Waiver
Indicates your waiver of escrow for taxes and insurance, agreeing to pay these on your own.

Fair Lending Notice
Explains your protections under the Fair Housing Act, which prohibits discriminatory lending practices.

Flood Hazard Determination
States whether the property is in a flood zone.

Homestead Affidavit
Affirms that you are the property owners and have acquired the title.

Initial Amortization Schedule
Outlines the breakdown of payments over the life of the loan, including principal and interest.

Initial Escrow Account Disclosure Statement
Summarizes the monthly amount you’ll pay into escrow for property taxes and homeowner’s insurance over the next year.

Line of Credit Close Out
Authorizes the closure of your line of credit with the lender.

Itemization of Amount Financed
Breaks down the total amount financed.

Name / Signature Affidavit
Lists any names or variations you’ve been known by, affirming they all refer to you.

Obligation of Debts Affidavit
Details your financial circumstances, including income, assets, and debts.

Occupancy Statement
Certifies the purpose of the real estate transaction, where you’ll select your intended use for the property.

Owner's Affidavit
Acknowledges that the property is free from encumbrances and that you are the sole owner.

Patriot Act
Allows the signing agent to record your identification and verify your identity.

Loan Riders (Additions to Your Loan)

• Planned Unit Development Rider: Requires payment of HOA fees.

• Second Home Rider: States that the property is not your primary residence.

• 1-4 Family Rider: Confirms the property is a multi-unit.

• Manufactured Home Rider: States that the property is a manufactured home.

• Condominium Rider: Confirms the property is a condo.

• ARM Rider: Indicates the loan is an Adjustable Rate Mortgage.

Servicing Disclosure Statement
Explains that the lender has the right to sell or transfer servicing rights to the loan.

Settlement Statement
Lists all transaction charges, showing debits and credits and the total transaction amount.

SSA-89
Allows your lender to validate your Social Security Number with the IRS.

Taxpayer Consent Form
Grants consent to share tax information received from the IRS with others involved in the mortgage transaction.

Truth in Lending Disclosure Statement
Discloses the APR, finance charge, loan amount, payment total, and payment schedule.

W-9
The federal tax form, completed with your name, address, and Social Security Number.

Mastering these documents and their descriptions will help you confidently guide borrowers through their loan packages. For more tips and insights, check out our additional resources and mock signing videos in both English and Spanish. With these tools, you’ll be prepared to make a great impression on your clients at every signing.