The loan-signing process starts with a borrower completing and signing a loan application in the presence of a loan officer where the borrower gives their credit score, collateral and discusses the rules of the loan. After the loan has been applied for, the lending institution processes and either approves or denies the loan, then the borrower is assigned a notary signing agent (NSA) and the two of them go through all of the legal paperwork before they both sign to accept the loan, according to 123 Notary.
The loan signing process is complicated and requires a lot of background checking and paperwork on the side of both the borrower and the lender. The following is a quick overview of the process involved in signing a loan, as described by 123 Notary.
- Apply for a loan
- Loan officer explains the loan's terms
- Application reviewed by lending institution
- Paperwork is signed and loan accepted by borrower
Apply for a loan with a loan officer. This application asks for financial information such as current employment and credit rating.
The borrower learns about how they will receive the loan, how they are expected to pay the loan back and how much interest will be on the loan.
The lending institution reviews the application and decides if it is a safe decision to lend money to the applicant.
The NSA explains all of the terms of the loan before the borrower and NSA officially sign the loan papers to realize the transaction.