Notary Public vs Loan Signing Agent: What's the Difference for Your Real Estate Closing?
When purchasing a new property you may find yourself in need of a professional to complete your final documents before closing on your new investment. You might hear the terms “notary public” and “loan signing agent” used interchangeably but there is a big difference in the training, responsibilities and overall duties these occupations hold regarding a real estate closing.
Selecting the correct real estate notary for your refinance or purchase is important to ensure your new loan will close on time and fund properly for your move-in date.
What's the Difference?
A California Notary Public is an individual commissioned by the state to perform certain notarial acts such as verifying identity and witnessing signing of general documents. A Notary Signing Agent (NSA) on the other hand is a commissioned notary who has extra training and experience in handling more specialized areas such as signing of complex loan-document signing.
The terms are used interchangeably but refer to slightly different areas of the profession. Every signing agent is a notary but not every notary is a signing agent especially when it comes to handling a 150-page mortgage package.
Comparison: Notary Public vs. Notary Signing Agent
| Factor | Notary Public | Notary Signing Agent |
|---|---|---|
| State notary commission | Yes | Yes |
| Performs notarizations | Yes | Yes |
| Handles loan packages | May | Commonly |
| Specialized loan-document training | Not necessarily | Commonly |
| Works with title/escrow/signing services | Sometimes | Commonly |
| Walks borrowers through signing logistics | Limited to permitted assistance | Commonly |
| Provides legal or financial advice | No | No |
| Suitable for mortgage signings | Depends on assignment and experience | Commonly appropriate |
What Does a California Notary Public Do?
A California Notary Public is an impartial public servant who is appointed by the California Secretary of State. Their main responsibility includes preventing fraud by verifying the identity of the person signing a document, ensuring that the signer is signing of their free will and witnessing the signature.
A standard notary public deals with all kinds of daily paperwork. They can notarize a simple consent form for a trip, an auto-title transfer, or even papers for an estate planning such as a power of attorney.
During these appointments the notary's attention should be focused on the notarial act, such as verifying a valid form of photo identification, journaling the entry, and affixing the proper California acknowledgment or jurat certificate to the document. The notary public is neither expected to nor required to have any knowledge of the mechanics of the documents or the responsibilities to lenders or title companies.
What Does a Loan Signing Agent Do at a Real Estate Closing?
A loan signing agent is a type of notary public who performs a more specialized function. They are employed by title companies, escrow officers or by the borrowers themselves to execute a complete real estate closing package.
A typical package of real estate loans consists of 100 to 200 pages of documents. On the pages requiring notarization (like the Deed of Trust or Subordination Agreement), only a few of them must be notarized.
But on numerous other pages, the documents need to be signed, dated, and/or initiated.
At a real estate closing, a loan signing agent:
Prepare the package: They receive the digital files securely, print them in the exact size needed (usually a blend of legal and letter size paper), and get it ready for your appointment.
Guides the signing logistics: They know the difference between the Note, the Closing Disclosure, and the Notice of Right to Cancel. They remind you to sign, date, and initial in all the right places.
Performs notarizations: They do the work of the actual notarization of documents as part of the overall signing process.
Handles post-signing logistics: They check that all signatures are present and return the signed documents to the escrow or title company (usually by overnight delivery) to ensure that the loan funds on time.
Is a Loan Signing Agent the Same as a Notary Public?
Legally speaking, they are equal; however, professionally it is two different levels.
It is important to note that the State of California does not issue a “Loan Signing Agent License.” What they do issue is a commission as a Notary Public. A Notary Signing Agent is a Notary Public who has taken private industry approved schooling such as that offered by the National Notary Association (NNA) to learn how to properly notarize mortgage closing documents.
Therefore, your power to notarize a deed comes from the State of California, but your skill at flawlessly executing a real estate closing comes from your signing agent training and industry experience.
Can Any California Notary Notarize Mortgage Documents?
Legally, yes, a real estate document can be notarized by any California notary public, as long as the notary complies with California law when completing the signature and journal entries.
Practically, however, you would want to use a mortgage-specific or title-specific notary for your real estate closings, as mortgage lenders and title companies tend to have very specific requirements for their documents. A standard notary could miss an initial on a Closing Disclosure, or forget to have the borrower date the Right to Cancel, and a lender could refuse to accept the documents.
When a package is rejected, the loan doesn't close. Your interest rate could be canceled, and the seller may cancel, too. The risks are simply too great for escrows and title companies to want to work with inexperienced signing agents that may return an incorrect package. They need to be safe and correct the first time every time.
Do I Need a Special Notary for a Mortgage or Refinance?
If you are a buyer, seller, or borrower getting your own notary for a transaction, you must specifically ask for a real estate notary or loan signing agent.
Say you're in the process of refinancing a Malibu property, but your escrow company is based out of Pasadena. Your escrow officer emails you the loan documents and asks you to get a local notary, so he can send the signed docs back to the lender. If you go to a local shipping store that has a notary, legally they can stamp your Deed of Trust, but they likely won't know what to do about the 120 page lender specific disclosures. You will have to figure out the signature requirements on your own.
Hiring a real estate notary ensures you that they know exactly what goes into a closing package and will complete each page in accordance with the instructions given by the lender.
What a Real Estate Signing Agent Can and Cannot Do
Even with specific training, a loan signing agent is limited by law in the actions he or she can perform in the state of California. As such, agents need to be aware that they are prohibited by law from performing tasks associated with unauthorized practice of law.
A loan signing agent CAN:
Identify the documents in the package by the title (e.g., “This is your Closing Disclosure, which outlines your final loan terms and closing costs”).
Show you exactly where to sign, date, and initial.
Ensure that you are signing the documents voluntarily.
Administer oaths and perform notarizations.
A loan signing agent CANNOT:
Give legal advice or tell you if a contract is fair.
Give financial advice or opine on whether your interest rate is competitive.
Explain the specific legal ramifications of a document
Draft legal documents or alter the terms of the loan.
If the borrower has questions regarding the terms of the loan during the consummation, a signing agent will stop the process and ask the borrower to contact his loan officer or escrow agent.
How Mobile Loan Signings Work in Los Angeles
In terms of convenience, nothing beats a real estate closing in Los Angeles County. In a busy metropolis such as Los Angeles, it is essential to get the deal done on time. Instead of asking all parties involved to come to the title office, it is much more convenient to call a mobile real estate notary service to your place of residence.
24HourMobileNotaryLA often undertakes the responsibility of real estate notary services for real estate agents and borrowers.
Meeting Location Flexibility: A mobile loan signing agent can meet with a buyer on his lunch break in an office in Century City, meet with a seller at his house in Beverly Hills, and finalize a refinance at a coffee shop in Santa Monica.
After-Hours Requirements: Escrow deadlines don't always fall on a 9-to-5 schedule. If loan documents are delayed and don't arrive until 6:00 PM, a 24/7 mobile notary can finish the signing that evening so that the documents can be shipped out first thing the next morning.
Multiple Signers: If a property is being purchased by two people who are in different parts of the city (say one is in Brentwood and the other is in Culver City), a mobile notary can meet with them one right after the other to get both signatures on the same day.
What Should I Bring to a Real Estate Signing Appointment?
To make sure your real estate closing goes smoothly. Here is what borrowers and sellers should have ready to go before the notary arrives.
Valid Identification: Per California law, identification must be unexpired and issued by a government agency. The most common forms of valid identification are a California driver's license, a US Passport, or a foreign passport with a valid USCIS stamp.
All Required Signers: Anyone whose signature is needed on the loan docs (including non-borrowing spouses in some cases) needs to be present for the notarization.
Funds for Closing: If your escrow instructions require that you bring a cashier's check to the signing, remember to bring it! (Note: Many closings now require funds to be wired to escrow instead of tendered to the notary.)
A Suitable Environment: Clear off that huge kitchen table. Loan packages are not for framing; they truly are big, heavy things best dealt with in an orderly, well-lit environment.
Questions to Ask Before Hiring a Real Estate Notary
If you need to book a real estate notary in Los Angeles, ask these questions to ensure they are qualified for the job:
Are you familiar with real estate loan packages? Ask them if they've handled your type of deal before (i.e., buyer package, seller package, HELOC or reverse mortgage).
Can you print dual tray documents? Many loan packages require both letter and legal size paper. A professional signing agent will have the necessary equipment to print your loan package, the way the lender needs it.
Are you available after hours? Real estate transactions can be very last minute. You need a notary that is able to accommodate evening or weekend signings.
How quickly can you deliver the documents to me? Ask them if they know the cut-off time for FedEx or UPS deliveries so that the documents can make it through overnight.
Why Choose 24HourNotaryLA for Your Real Estate Closings?
At 24HourNotaryLA, we have been in the business for over 9 years, and we understand that in real estate, time is money. You can't afford to make mistakes on who signed what when it comes to funding.
As a premier mobile notary in Los Angeles we offer our experience in real estate and loan signings. We can work with you escrow officer, title company, mortgage lender or individual in the greater Los Angeles area from Sherman Oaks to Manhattan Beach. Because we are available 24/7 we are able to accommodate the same day, urgent and often after hours loan signings to get your transaction across the finish line, confidentially and legally.
Need a Reliable Real Estate Notary in Los Angeles?
Don't let your real estate closing slip away. Whether you are an escrow officer, who requires a flawless package execution or a borrower, who wants to complete a home purchase after work hours, 24HourNotaryLA is available to you 24/7. We have been providing real estate signing services in Los Angeles and Beverly Hills for over 9+ years.
We specialize in loan document signings and we can make sure your loan paperwork will be signed, sealed and delivered right on time. Call us now to schedule your mobile real estate signing service!
Frequently Asked Questions
Can any notary notarize mortgage documents in California?
Legally speaking, any commissioned California notary can notarize your signature on a mortgage document. Title companies and lenders, however, prefer a Notary Signing Agent, since he or she has received special training in the nuances of a 150-page loan package, avoiding costly mistakes.
What is the difference between a notary public and a loan signing agent?
A notary public is an individual commissioned by the government to verify identities and to witness signatures. As such, a loan signing agent is a notary public who has received further training to prepare borrowers to sign on the closing documents and to satisfy the requirements of the lenders.
Do I need a special notary for a refinance?
Yes, it is definitely recommended. A refinance has a huge amount of time sensitive lender documents that must be done properly including a Notice of Right to Cancel. Having a experienced loan signing agent to make sure things get executed and back to the lender before any funding deadlines is due is crucial.
Does a loan signing agent explain the loan documents?
A signing agent can identify the document by its title and explain the standard terms (interest rate or loan amount on the Closing Disclosure). Nevertheless, he is unable to explain the legal implications of terms or financial advice.
What should I bring to a loan signing in Los Angeles?
You need to bring a valid, non-expired government-issued ID (such as a California DMV ID or US passport), and you should make sure that any other signers are present, and that you have a clean place to sign the mountains of paperwork.