NOTARY SIGNING AGENT EXAM ACTUAL WITH

NOTARY SIGNING AGENT EXAM (ACTUAL / ) WITH

QUESTIONS AND VERIFIED CORRECT SOLUTION

LOAN APPLICATION

The Uniform Residential Loan Application (also known as the 1003 or ten o three), is basically a summary of all the information the mortgage company used to determine the loan terms they should offer the borrowers. An application that gives a lender information about the purpose of the loan as well as the applicant's financial condition.

MORTGAGE

Security instrument. This is basically the same document as the deed of trust. The mortgage represents the borrower's pledging their homes, security or collateral in exchange for the loan they are receiving from the mortgage company.

NOTE The note is a fancy way of saying "contract". A signed instrument acknowledging a debt and a promise to repay per the terms outlined. The important terms contained in the note, which must be reviewed with the borrower, are interest rate, term of loan, monthly mortgage payment, type of loan (fixed rate, arm, etc.), date of the loan and personal guarantors (those responsible for the loans repayment). The note must be signed by all guarantors 1 / 3

Notice of Right to Cancel In a refinance transaction on a primary residence, the borrower gets three business days (not including Sundays and some holidays) from the day they sign loan documents to cancel the loan if they want. This is a law and cannot be waived. The day they sign is not to be included.

PREPAYMENT PENALTY

A charge for the payment of a mortgage or deed of trust note if it is paid prior to the actual due date.

RECONVEYANCE

This is the form that the Trustee on a Deed of Trust issues when the Beneficiary has been paid off. Removes the lien from the property.

SECURITY INSTRUMENT: Deed of Trust or Mortgage.

SECURITY INSTRUMENT: Deed of Trust or Mortgage. the written

instrument by which a debtor pledges property as collateral to secure a loan. 1. It records who actually owns the property. 2 / 3

• It records the amount the borrower is borrowing from the

bank, also known as the lien amount. 3. It records who is lending the money, (lien holder)

• It records the legal description of the property. (street

address) Avenue. The legal description is how the county recognizes the property location via the lot boundaries and lot location within the county.

• it states the rules and regulations to which the new property

owner has to abide

Settlement Agent Person that manages the events of the closing. SETTLEMENT

AGENT: Usually the Escrow Officer.

Escrow An escrow company is a licensed neutral third party that distributes legal documents and funds on behalf of a buyer and seller. More simply stated, they are the middle man. They are the authority to make sure that the seller, lender, and borrower all follow through on their agreed-upon terms.

SIGNATURE NAME AFFIDAVIT

Each borrower must sign a name affidavit that includes all legal names by which that borrower is know, promising that

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