When it comes to notarizing documents, many people are unsure whether they need a notary and loan signing agent or just a notary public. While both professionals play a role in verifying documents, their responsibilities and expertise differ significantly. Understanding these differences will help you determine which service best suits your needs in the legal services and financial services.
What is a Notary Public?
A notary public is a state-commissioned official authorized to verify identities, witness signatures, and deter fraud in legal transactions. Their primary role is to ensure that documents are signed willingly and that all parties understand the agreement. As a commissioned notary, they handle a variety of documents, including:
- Affidavits and sworn statements
- Powers of attorney
- Business contracts
- Personal legal documents
Notary services are widely accessible, with professionals available at banks, law offices, and mobile notary services like VIP Notary Services. A real estate notary public may also handle property-related documents, though their scope is more limited compared to a loan signing agent.
What is a Loan Signing Agent?
A loan signing agent (LSA) is a notary with specialized training in handling real estate and loan documents. They work primarily with mortgage lenders, escrow officers, and title companies to ensure the smooth execution of loan closings. Unlike standard notaries, LSAs have in-depth knowledge of:
- Mortgage loan documents
- Refinancing agreements
- Home equity lines of credit (HELOCs)
- Reverse mortgages
Loan signing agents go beyond notarization by guiding borrowers through their loan documents, ensuring all required signatures are completed and that forms are properly executed. This specialized role is often referred to as a notary signing agent or signing notary.
Key Differences Between a Loan Signing Agent and a Notary Public
Understanding the distinct responsibilities of notary publics and loan signing agents is crucial to selecting the right professional for your needs. Below is a detailed comparison to help clarify their roles and highlight the loan signing agent vs notary public differences.
1. Documents They Handle
- Notary Public: Primarily notarizes general legal documents such as affidavits, powers of attorney, wills, trusts, and contracts. Their role is to confirm identity and witness signatures without explaining the contents of the document.
- Loan Signing Agent: Specializes in mortgage-related documents, including loan agreements, refinancing documents, closing disclosures, and deeds of trust. They not only notarize but also walk borrowers through the documents to ensure accurate completion. This is a key aspect of what a loan signing agent does.
2. Training and Certification Requirements
- Notary Public: Required to complete a state-mandated notary commission process, which typically includes an application, background check, and a short exam. No additional specialized training is needed.
- Loan Signing Agent: Must first become a notary public and then complete additional training to understand loan documents. Many LSAs obtain certification from recognized organizations like the National Notary Association (NNA) and may undergo background screening and continuing education.
3. Responsibilities and Level of Involvement
- Notary Public: Acts as an impartial witness to verify the identity of signers, ensure they are signing voluntarily, and apply a notary seal. They do not provide explanations or guidance on the document’s contents.
- Loan Signing Agent: Plays an active role in the loan closing process, ensuring borrowers sign all required documents correctly. They help prevent errors that could delay funding and can clarify general sections of the documents, though they do not provide legal advice. Notary signing agent responsibilities include guiding clients through the loan signing process.
Who Should You Hire for Your Documents?
Choosing between a notary public and a loan signing agent depends on the type of document you need notarized:
- If you need general legal documents notarized, a notary public is the right choice.
- If you’re closing on a home or handling loan-related documents, a loan signing agent is your best option.
At VIP Notary Services, we offer both general notary services and loan signing services, ensuring that your documents are properly notarized and legally binding. Our team includes professionals who can serve as a notary for loan documents and handle various aspects of document handling.
Notary Public vs Loan Signing Agent: Making the Right Choice
Understanding the difference between notary public and notary signing agent will help you choose the right professional for your needs. Whether you require assistance with real estate transactions or general legal documents, VIP Notary Services provides certified, mobile notary solutions to ensure a smooth and stress-free experience.
For those wondering, “Is a loan signing agent the same as a notary?” the answer is no. While all loan signing agents are notaries, not all notaries are qualified to be loan signing agents. This distinction is crucial when dealing with complex mortgage documents or real estate transactions.
Need professional notarization? Call us at 310-880-7896 today!
FAQs
A notary public is commissioned to verify signatures and administer oaths for general legal documents. A loan signing agent, also known as a notary public loan signing agent, is a notary with specialized training in handling mortgage-related documents, particularly for real estate transactions and loan closings.
Loan signing agents typically earn between $75 and $200 per signing, depending on the complexity of the transaction. These loan signing fees are generally higher than standard notary fees, which are often capped by state regulations.
Loan signing agents primarily deal with mortgage-related documentation, including refinances, purchase loans, Home Equity Lines of Credit (HELOCs), reverse mortgages, and seller packages. These mortgage documents are usually more complex and time-sensitive than those handled by standard notaries.
Yes, loan signing agents face certain restrictions. They can describe documents and indicate where to sign but cannot interpret terms or provide legal advice. Some states also have specific requirements or limitations for performing loan signings, such as mandating attorney presence or restricting where signings can take place.
There are three main notarization options: traditional in-person services, remote online notarization (RON) using secure video conferencing, and mobile notary services where the notary travels to the client’s location. Each option offers different benefits in terms of convenience, accessibility, and personal interaction. Some services even utilize a digital platform for streamlined processes.
