A Notary for A Mortgage Agreement
A Mortgage is a loan agreement used to finance the purchase of real estate property. An individual would typically take on a mortgage loan in situations where they aren’t able to completely afford to purchase a property upfront. By borrowing money from a lender and agreeing to repay it over an agreed upon period, an individual is able to close on a property they under any other circumstances would not have been able to acquire. Mortgages are typically secured by the property being purchased. If the borrower defaults on the loan, the lender can seize the property, or at least enforce a lien against the sell of the property.
There are several reasons why a person may choose to take on a mortgage agreement. Purchasing a primary residence, purchasing an investment property, purchasing a vacation home, refinancing an existing mortgage, and to access cash, are amongst the many reasons why an individual would take on a mortgage. At Notary Glow, we’ve facilitated the mortgage loan process between many lenders and borrowers. We throughly understand the mortgage process and the paperwork. We are fully aware that every mortgage process is different; and those differences are based on the client’s specific needs and circumstances. Stay with us briefly, as we discuss common reasons why many people would opt for a mortgage loan.
Why Should I Take On A Mortgage?
Unless you can completely afford to buy the property upfront, you’ll most likely end up having to acquire some sort of loan to finance the property’s purchase. Taking on a mortgage loan is the most popular alternative to paying for a property upfront. There are several reasons why someone might choose to get a mortgage; here will take a look at some common reasons:
A Primary Home Purchase: Financing the purchase of a primary home is the most common reason for getting a mortgage. Under these circumstances, the borrower would use the funds acquired from the mortgage agreement to buy the property upfront from the seller(s). Over an appointed timeframe, the borrower would repay the lenders for the loan funds used to purchase the property.
To Refinance An Existing Mortgage: An individual may choose to refinance an existing mortgage to receive a lower interest rate or to change the loan terms. Refinancing an existing mortgage often helps borrowers lower their monthly payments or even help with repaying the loan quicker.
To Access Cash: Some borrowers make the choice to tap into their home’s equity. The equity is the difference in what you owe on your existing mortgage and how much money you could receive if you sold your home. Some people take on a Home Equity Line of Credit (HELOC), which allows them to borrow more than the balance of their existing mortgage. As a result, they are entering into a second mortgage.
An Investment Property Purchase: Some people choose to acquire a mortgage to generate an income. The funds acquired from a mortgage agreement under these circumstances are often used to purchase a property that will be used as a rental space for others or as a space for the mortgagee to operate another form of business opportunity.
A Vacation Home Purchase: There are some individuals who are able to afford a more affluent lifestyle. Instead of always having to check into a hotel in one of their favorite places around the world, they may choose to take on a mortgage to purchase a second home that can serve as a vacation property.
As mentioned, there are several reasons why people choose to involve themselves in a mortgage agreement. Let’s take a look at some of the common components of a mortgage agreement.
Common Components of A Mortgage Agreement
As discussed above, mortgage agreements vary. Every borrower’s needs are unique to their circumstances. Loan amounts, interest rates, terms, types and etc., all come together to differentiate one borrower’s mortgage agreement from another’s. However, there are several common components that are typically included in a mortgage agreement; let’s briefly discuss:
Loan Amount: The sum of money being borrowed to purchase the property.
Interest Rate: The rate at which interest will accumulate on the loan.
Loan Term: The timeframe in which the loan is expected to be fully repaid.
Type of Mortgage: The mortgage can have a fixed-rate (same interest rate for the entire loan) or the mortgage can have an adjustable-rate (the interest rate changes over the loan’s term).
Repayment Schedule: This schedule shows when the borrower will make their loan payments and how much they will pay each time.
Default Provisions: This highlights the consequences when the borrower fails to remit loan payments on time.
Escrow Provisions: This highlights the funds to be set aside for property taxes and insurance payments.
Prepayment Provisions: This set forth the borrower's ability to pay off the loan before the end of the term.
Collateral: This highlights the property that is being used to secure the loan.
Co-signers: In circumstances where the borrower does not have sufficient credit or income to qualify for the loan on their own, a co-signer(s) may be needed in order to the loan to be approved.
Notary Glow & Your Mortgage Agreement
You may be wondering, “How can Notary Glow help me?” Well… we are a notary company and there is a notarial block attached to your mortgage agreement. In the mortgage loan process, a Notary Public is required to accurately verify the identity of the parties involved; as well as, administer oaths or affirmations, and take acknowledgements, in circumstances that are necessary. A notary can also serve as an impartial witness to the signing of mortgage documents. The overall role of the notary public is to ensure that the mortgage documents are properly executed and to deter fraudulent behaviors in the process.
Notary Glow offers our services two (2) ways: Remote (Online) Notary and Mobile (Travel to you) Notary. Using our partnered platform services we can notarize and in some cases, act as an impartial signature witness in regards to your mortgage documents. With online notarization we can get you signed, stamped and set in as little as 15 minutes. Remote online notarization may be a new process to you. However, it’s been around for a while and it’s safe, secure, legal, and nationally accepted. If you are apprehensive of the remote online notarization process, we can travel to your desired location to complete your notarization. Home, work, school, local coffee shop, eatery and etc., our Mobile Notary Service will meet with you to sign and stamp your mortgage loan agreement. There’s no need to race through through the entire Greater New York area, trying to track down an available Notary Public; Notary Glow is a couple of clicks away!
