What’s in my Loan Document Package?

Following is a list of common documents that may be contained in a loan package.

Please note the following:

  • It is possible that not all documents below will be contained in every loan package; it is also possible that other documents may be included which are not described below.
  • It is possible that the documents will not be stacked together in the order that they are described below (it is the notary’s responsibility to ensure that the stacking order is not changed from how it was received).
  • The notary is allowed to explain the name of the document to the borrower, however; the notary is not allowed to comment on the source(s) of the information, its accuracy, or his/her opinion of the information contained therein.



Borrowers Affidavit:
This document must be signed by the borrower in the presence of a notary public. In the document the borrower attests that they have not done anything to affect the title to property, that they are not the subject of divorce or bankruptcy proceedings, etc.
Borrowers Certification:
Document that states that the borrower/s have applied for a mortgage loan from the “Lender”, understand and agree that the lender has the right to the full loan review process, and fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make false statements when applying for this mortgage.
Borrower Information:
This document is to be completed entirely by the borrower(s) and signed. Since this takes some time, it is recommended that this document be saved until the end so that you, the notary, can do your necessary paperwork (i.e., filling out the notary journal, reviewing the signing documents for errors, etc…).


Certificate of VA Eligibility:
Document issued by the Veterans Administration to qualified veterans which entitles them to VA-guaranteed loans. Obtainable through local VA offices by submitting form DD-214 (Separation Paper) and VA form 1880 (request for Certificate of Eligibility).
Closing Instructions:
This document contains instructions from the lender specifying certain loan requirements and conditions. This rarely needs signature or initials, but let the borrowers review it anyway.
Compliance Agreement:
Document signed by the borrowers stating that they will help the lender after closing to correct errors in the documents at the lenders request. This is meant to only apply to clerical errors so that the loan will meet requirements from Fannie Mae or FHA, etc.
Consumer Choice Disclosure:
This disclosure is provided to the borrower because they may have inquired about a lender-affiliated mortgage or escrow company. The lender is stating that any referrals were only suggestions and that the borrower is free to choose any company that he/she desired.


Deed of Trust/Mortgage:
This document secures the subject property as collateral in consideration for the loan, and is recorded with the county. Have the borrower check that the loan amount is correct and that the length of the loan is accurate. Since this document is recorded, as long as there are no specific restrictions in your state and/or county, have the borrowers initial every page. The document is a standard form; therefore the terms and paragraphs in the body of the document may, or may not apply to the loan. Have the borrower(s) sign their name in blue ink (unless another color is specified) exactly as it is printed. This document will need notarization.
Deed of Trust/Mortgage Riders:
At the end of the Deed of Trust/Mortgage there may be a list of Riders (additions or amendments) to the document. If one or more of the boxes are checked, then the appropriate Rider will be attached. Examples include the Condominium Rider, 1-4 Family Rider, and Balloon Rider. These will need signatures, but not notarization since the Riders are part of the Deed/Mortgage.
Direct Endorsement HUD/FHA Insured Mortgage:
This is a mortgage program developed by the federal government. It allows purchasers to obtain a mortgage with a minimal down payment. FHA mortgage insurance is required because of the low down payment to the risk. When the mortgage is paid off, funds must be received by the lender by the first of the month or another month’s interest is added to the payoff.


Equal Credit Opportunity Act (ECOA) Disclosure:
Federal law requires creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
Escrow Account Disclosure:
Account held by lender containing funds collected in conjunction with monthly mortgage payments. Also known as impounds, the funds in this account are held in trust by the lender on behalf of the borrower, and are used to pay expenses such as property taxes and homeowner’s insurance.
Escrow Transfer Request (Irrevocable Assignment of Escrow):
This form must be signed by the borrower if the borrower’s lender has an escrow account. Since the new lender gives credit to the borrower for the amount of money in this account, this document instructs the previous lender to send any funds remaining in the escrow account to the new lender when the mortgage is paid off.
Escrow Waiver Agreement:
This document allows the lender to waive its right to require the borrower to establish an escrow impound account to pay for such things as real estate taxes or hazard insurance premiums.


First Payment Letter:
This document states when the borrowers first payment is due, and what is has been estimated to be.
Flood Certification:
Federal law requires that you obtain flood insurance, if you obtain a mortgage, and you property is in a designated flood zone. This fee is paid to a third party to determine the flood zone status of your property, and to notify us of changes to the flood zone map that effect your property during the life of your loan.


Good Faith Estimate:
Written estimate of costs the borrower will pay at closing, provided by a lender within three days of loan application.


HUD-1 Statement/Settlement Statement:
This document is generated at the close of escrow and details all costs and expenses that are associated with the transaction. Included in the HUD are: the settlement charges to borrower, the amount of the loan to be paid off, the gross amount due from the borrower, the principle amount of the new loan, and any other deposits or fees. If there is an amount or an “x” on line 303 or 1601, that will let the notary know that there are additional funds to be collected from or provided to the borrower. A notary can explain what the charges are for, but cannot explain the reason for the amount of each charge. Generally, if there is no addendum to the HUD, there will be a place on each page of the HUD for the borrower’s signature.
HUD-1 Addendum/Acknowledgement:
This is an additional page that may be attached, and verifies that the borrowers have read and understand the HUD. This document will require borrower’s signatures.


Loan Application/1003:
An initial statement of personal and financial information required to approve a loan provided by the borrower and necessary to initiate the approval process for a loan.
This document is required by lenders prior to loan approval, borrowers must sign original copy at time of closing.
Loan Servicing Disclosure:
The collection of mortgage payments from borrowers and related responsibilities (such as handling escrows for property tax and insurance, foreclosing on defaulted loans and remitting payments to investors). Will disclose whether the borrower’s loan will be sold.
Lock Confirmation Worksheet:
A lender’s guarantee of an interest rate and related points for a set period of time, usually between loan application and loan closing. Protects borrower against rate increases during that time.


See Deed of Trust.
Mortgagors (Occupancy) Affidavit:
This document is used by the Federal Housing Administration to insure the loan, or by the Veteran’s Administration to guarantee the loan, or by a Private Mortgage Insurance Company to insure the loan. This document also states whether or not the borrower intends to occupy the property as a primary residence. It also determines if a property is located in a special flood hazard area. This document will need to be signed and notarized.


The note is the loan agreement, and it outlines the terms of the loan. The note includes: address of the property, loan amount, lender, interest rate, date on which first payment of the new loan is due, where the payments are to be mailed, monthly payment, percentage charged by the lender if the payment is more than 15 days late. Make sure that the borrowers understand these terms and agree with them before they sign this document.
Notice of Right to Cancel:
If the loan allows for the borrower to cancel the loan that is being signed within three business days (including Saturday) this notice will be included. National Holidays are excluded from the calculation of three business days. Be careful to monitor where the borrower signs this document. The borrower should usually sign on the line that says they have received the document (not the line that states they wish to cancel). There will usually be multiple originals of this document. Have the borrowers sign all originals.


Overnight Fee Statement:
This allows the lender to use overnight express mail to payoff the previous mortgage. Let the borrower know that this fess is already reflected in their HUD-1 statement.


Patriot Act Disclosure:
Closing agent must confirm each Borrower’s identity with an acceptable form of valid ID. Closing agent must sign and date this form. Borrowers must sign and closing agent must complete and sign the bottom section of the “Important Applicant Information” sheet that follows.
Payoff Letter:
This document authorizes the lender to payoff the old loan with the funds from the new (refinance) loan.
Payoff Statement:
Itemizes the old loan with other fees that may include: prepayment interest, optional insurance, fees required for payoff, funds to be credited, and funds to be retained. This tells the borrower(s) how the amount of payoff of the old loan was reached. Generally, the total payoff amount on this statement will match the payoff amount listed on the HUD-1 statement.
Privacy Disclosure:
States that the lender does not disclose any nonpublic information about the borrower to anyone, except as permitted by law.


Request for Copy or Transcript of Tax Form (4506):
Allows lender to get a tax return transcript, verification that you did not file a federal tax return, form W-2 information, or a copy of a tax form. This document is for each individual borrower, so there should be one for each borrower.
Request for Taxpayer Identification Number and Certification (W-9):
Allows lender to request and review tax return information from the borrower, and/or governmental agencies. This document is for each individual borrower, so there should be one for each borrower.


Signature Affidavit:
Document that records your legal name and signature, and any other variations of your legal name.
Subordination Agreement:
This document alters the priority of existing liens against the property, such as an existing HELOC or second mortgage, ensuring that the new Deed/Mortgage will be placed in the first position on the title of the property. There may be multiple subordination agreements. This document requires notarization. This document will usually have notarized signatures from the entity that is agreeing to the terms of the subordination agreement. Notarization of the borrower(s) signatures must also be completed on the agreement.


Tax Authorization Form:
This authorizes the lender to withhold monies from the borrower’s monthly payment to pay their taxes and insurance.
Truth-In-Lending Disclosure:
Federal law requires written disclosure of the terms of a mortgage by a lender to a prospective borrower within three business days of application. Discloses the following to the borrower: annual percentage rate, finance charges, amount financed, total number of payments, and the amount of each payment associated with the loan.