Listed below are some samples of the Standard Closing Documents that borrower(s) may be asked to sign, and a short explanation of each. Please refer to the signature and notary requirements for each document to ensure proper execution of each document.
AFFIDAVIT and AGREEMENT
Certifies specific information that the borrowers acknowledge and agrees to when they sign the form. The certifications include, but are not limited to, the purpose of the loan, financial terms, occupancy status of the property, and no secondary financing unless specified on the Affidavit.
SIGNATURES: Signed by all "borrowers" exactly as the names appear.
NOTARY: Must be notarized in accordance with state, county or local requirements.
BORROWERS AUTHORIZATION and CERTIFICATION
This document authorizes the lender to obtain verification of any information contained in the borrowers' loan application and provide this information to any investor upon request.
SIGNATURES: Signed by all "borrowers" exactly as the names appear.
NOTARY: Not required.
HUD - 1 SETTLEMENT STATEMENT
The HUD - 1 is used to itemize the charges paid by the borrowers (parties to the transaction) in the settlement of a real estate loan transaction.
SIGNATURES: All signers to the "Note" must sign the HUD - 1.
NOTARY: Not required
NAME AFFIDAVIT
Used to certify the identity of the borrowers who have been known by more than one name. This may occur if a person uses variances of a given name or was recently married or divorced and changed names. The additional names are shown on the Affidavit and the borrowers certify that all names refer to one and the same person.
SIGNATURES: Signed by all "borrowers" exactly as the names appear under or beside the signature line.
NOTARY: Not required.
NOTE
Evidence of the dept and a promise to repay the debt to the lender. When executed by the borrowers, it acknowledges the debt and the terms under which the debt will be repaid.
SIGNATURES: Truth - In - Lending disclosure statements must be signed and given to the signers before the "Note and Security Instrument" is signed.
SIGNATURES: Signed by all "borrowers" exactly as the names appears on the Note.
NOTARY: Not required unless specified by the Lender.
NOTICE OF RIGHT TO CANCEL / CERTIFICATE OF CONFIRMATION "RIGHT TO CANCEL"
Federal Law requires Lenders, in a credit transaction in which a security interest is or will be retained on a consumer's principal or primary residence, to give the consumer the right to cancel or rescind the transaction. The borrower will have till midnight of the third business day following the signing or closing of the transaction and receipt of the Notice of Right to Cancel to cancel the transaction.
SIGNATURES: Each person entitled to rescind must execute the "Receipt" section of the Notice of the Right to Cancel exactly as the names appears.
NOTARY: Not required.
