Empower your business with sales document automation in loan agreements

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people have been asking me to make this video since well since before I even started making YouTube videos hey signing agents this is Kendra with notary signing agent basics back with the video all about how I explain loan documents now this is the part of the job that probably gives new signing agents the most anxiety especially if they don't have any previous experience with loan documents themselves I mean how do you explain all of these loan documents to signers well today I'm gonna tell you but guys make sure that you stay to the end of the video because I'm gonna tell you how to get a free copy of the script that I'm gonna use in the video today now in this video I'm gonna show you how I explain what I consider the five most important documents in a loan package I found that if you can clearly explain these documents to signers then the rest of the signing should go pretty smoothly even if you can't explain the other documents now just so you know I am NOT an attorney I'm not giving you any legal advice I'm just giving you an example of how I explain these documents so before I get started let me give you a quick breakdown of what you can and cannot say as a signing agent as a signing agent you present a document to the signer and you give the signer the name of the document you can then give a description of the documents general purpose and you can point out information in the document to the signers such as loan payment amount prepayment penalty or other loan terms think about it this way you can basically answer what questions so for example if the signer asks what is my interest rate or what is my total payment well you can point out the interest rate that's shown on the closing disclosure or the note and you can point out the total payment that's shown on the closing disclosure or the payment letter as a signing agent you cannot give any advice or perform any duties that may be construed as the practice of law you cannot explain interpret or provide legal advice about the loan terms fees etc a simple way to think of this is that you cannot answer why questions so for example if a signer asks why is this my interest rate or why do I have to bring this amount of money to closing well you can't answer those questions and you'll need to direct the signer to talk to their lender for clarification now as long as you abide by the guidelines that I just gave you then there's really no one right way to explain loan documents every signing agent has their own particular way of doing things and their own preferences another notary may explain the documents in a different order or a different way than I do and that's just fine as you grow as a signing agent you may find a way that works better for you and again that's just fine this video is just going to give you a starting point a guideline that you can use as you get started to gain confidence at the closing table now the last thing I want to tell you before I get into the documents is that the sample documents that I'm gonna use are going to be for a fixed-rate purchase or refinance loan with no money due at closing this is a basic type of closing that I do frequently but keep in mind that you will need to adjust the script if you have a loan where the customer has to bring money to closing or if they're getting money out of the transaction or if they have an adjustable rate mortgage etc again this is just a basic guideline to help you get started so has this been a clear explanation so far for you guys is it is it making sense if so go down into the comments section right now and type got it or if it hasn't been making sense to you go down to the comments section and let me know exactly what it is that you need clarification on all right it's time for the moment you have all been waiting for let me tell you the five documents that I go over first with signers in the order that I actually explain them first the notice of right to cancel now in Texas this document is only for refinance loans on a signers primary residence so this document will not be in every file then I go over the closing disclosure the note the payment letter and last the deed of trust and the reason why I go over these documents first is because they answer the questions that signers generally consider the most important their ability to cancel the transaction even after signing loan amount interest rates principal and interest portion of their payment total payment including their escrows total closing costs money duet closing if any or the money that they're getting back out of the transaction their first payment date the term of their loan prepayment penalty of any late fees if any and whose name will be listed as the owner of the property on the deed so now with no further ado let's get into the loan documents the first document we have here is your notice of right to cancel and let you know that the signing is taking place on the 13th however you have until midnight of the 16th to cancel if you do decide to cancel it tells you how to cancel in this section and you would sign here if you want it to cancel but if you do not want to cancel today you will sign and date here saying that you are aware that you have the right to cancel and that you have received completed copies of this document next is your closing disclosure it shows the amount of your new loan your interest rate the principal and interest portion of your payment this is your total payment including your escrows this is the total of your closing cost and you have no money due at closing signature and date here on the last page the next document that we're going to take a look at is your note it again shows the amount of your new loan your interest rate first payment date May 1st your scheduled last payment date is in 20 49 principal and interest portion of your payment again this does not include your escrows for taxes and insurance this is a fixed-rate loan and it lets you know in this section that you do have the right to prepay the loan without charge or a penalty every month you have until the 15th calendar day to get your payment in after that there will be a 4% late fee signature here on the last page next is your payment letter it again shows the total amount of your payment including what the lender is collecting for your escrows for taxes and insurance signature and date here the next document is your deed of trust this document shows you as the owner of record on the property and it also lets you know that your lender has a security interest in the property signature here on the last page so guys it really is that simple as long as the terms that you're pointing out are correct then more than likely the rest of your signing will go smoothly even if all you know how to do on the rest of the documents is read the title and point out to the signer where to sign a big part of this job is just confidence you need to be able to confidently and smoothly explain these documents the signer will probably already be a little nervous or apprehensive about the transaction so you don't want to seem nervous or unsure you are the expert here the best way to become confident is through practice there's a saying that perfect practice makes perfect practice going over these documents over and over and over again out loud and not just by yourself but grab your spouse grab your kid or a friend make them sit down and be the signer while you explain the documents to them you should be able to easily explain these documents and point the pertinent information out even when the document is upside down if you can do that then you'll be able to confidently walk into a signing even if it's your very first one so now to help you out I am gonna give you a free copy of the script that I just used if you want to find out how to get it just go down into the description box and follow the instructions that you see there and you'll receive an email copy of my script that you can print out and use to practice also if you're not already following me on Instagram make sure that you look me up my username there is also signing agent basics I post just about every day with additional tips tricks funny memes about the industry and quick insights into my day as a working signing agent so guys let me know was this video helpful if so give it a thumbs up go down into the comment section and tell me what was the most helpful part to you also tell me what information you want me to go over in the future and no matter what make sure you hit the subscribe button and then hit the notification bell so you won't miss the next videos this is Kendra with Notary signing agent basics hoping that you have a productive and profitable day [Music]