Loan Documents

Notarizing Loan Documents and Making Them Binding

If you are looking into getting a loan and know that loan documents are necessary when it comes to the debts, then you should know some details about notarizing loan documents and the things that every single person should always keep in mind to ensure that both parties are protected.

If you are getting a mortgage, you need to make sure that the original document of the mortgage should be completed, signed, and notarized.  The act of notarization completes the taking of the credit.  The mortgage loan documents would cover description of the property based on its registration with the government, the purchase price to be paid by the debtor as well as the interest that the debtor should pay.  All of these would be invalid, however, without the notarization. This is usually performed by a certified notary signing agent.  A signing agent has been specially trained to handle loan closing and all of the complications that go along with it.

If you are getting a loan package with a deed of trust, you should also make sure that it will be notarized. Why? A deed of trust is a separate legal act; it shows the transfer of rights from one person to another.  In the case of a loan, it shows the transfer of rights from the creditor to the debtor.  Hence, it will not be binding to any party if it is not notarized.

If you are getting a Subordination Agreement you need to make sure that such document would be notarized.  What is a Subordination Agreement?  A Subordination Agreement is an agreement between you as a debtor and another entity to cover your first mortgage without removing any rights from you.  This is sort of a way for you to pay off your first mortgage on your house without losing a lot of money.

You need to make sure that your Subordination Agreement is taken care of and is notarized.  The notarization binds you to the second mortgagor and now all you have to worry is paying them off.

Finally, keep in mind that when it comes to loan documents, notarization is only the first step towards keeping things legal so always have the documents checked and have a copy that you can keep in a safe place.  Getting a loan is hard but getting out of a loan is harder if you do not have the right and legal documents checked before getting your feet wet.