1. Refinance
This is probably the most common loan signing you will encounter. A refinance is when a borrower pays off their current loan with a new loan. A homeowner refinances their home either to achieve a lower interest rate and/or take cash out based on the equity they currently have in the home.
These are very straightforward loans. The borrower is agreeing to pay back the loan at an agreed upon interest rate for an agreed upon duration.
2. Purchase
This is the second most common loan signing you will encounter. This is a transaction when a home buyer borrows money from a bank to purchase a home.
If you can execute a refinance, you can execute a purchase. The loan documents are essentially the same. Because whether someone is borrowing money to pay off an old loan or borrowing money to purchase a house, they are still borrowing money.
3. Seller package
This occurs when a homeowner sells their home. When a seller sells their home, there is paperwork that needs to be signed and usually one or two documents that will need to be notarized.
These signing are usually around 20-30 pages and pay less than a traditional refinance or purchase signing, but they usually take half the time.
4. HELOC
HELOC is an acronym for Home Equity Line of Credit. This a line of credit tied to the equity of a borrower’s home. For instance, if the borrower’s home is worth $500,000 and their current mortgage is only $200,000 that means the homeowner has $300,000 in equity. In this example, a homeowner could ask a lender to give them a line of credit against their home for $100,000 of the $300,000 of equity that they have. This gives the homeowner access to money for a rainy day, home renovations, etc.
These loans typically have variable interest rates (vs fixed) and are very popular during hot housing markets where the value homes are increasing.
5. Reverse mortgage
Reverse mortgages are loans where a homeowner, 62 years or older, converts their home equity into cash income with no mortgage payments.
Reverse mortgage loan documents can usually be over 200 pages because they typically have two deeds and two notes.
These types of signing assignments can take an hour and a half or longer because of the number of documents. In addition, clients are older, so patience is key.