Mortgage Agreement: A notarized Definition point of view.

As per the notarized definition, a notary public is a person who is a witness for the signatory of the documents and verification of the signatory parties. When it comes to mortgage agreements, a notary public is a person you will need to visit for legally biding the mortgage agreements. Such contracts can be held in the court of law as proof that the parties wilfully signed the agreement without any pressure or under any influence.

What is a mortgage agreement?

A mortgage agreement sometimes referred to as a mortgage note, is a contract between a borrower and a lender. The agreement allows the lender to take back the possession of any of the collateral such as property, cash, or any other asset if the borrower has defaulted on the loan amount’s repayment. The borrower is obliged to repay the loan amount based on the terms in the mortgage agreement.

What documents need to be Notarized in a mortgage loan?

Becoming a house owner is not easy. Apart from arranging the enormous amount of money, one also has to sign a considerable lot of paperwork to close the deal. A notary public is a person who verifies all the documents and the concerned party signing them. Once both the parties have signed the documents, the notary public will add his initials and signature and emboss the record with a stamp or a seal.

A mortgage Agreement

A mortgage document, in this case, is proof if the borrower turns away from his/her obligations. The mortgage note serves as collateral between the borrower and the lender. Therefore the original document is supposed to be verified, signed, and notarized. Without a notarized seal, the mortgage document is of no relevance and is based void. The document should have a legal description of the property name, the purchase price, the rate of interest, the loan period, and both the party’s signatures on the document. The notary then seals this document.

Deed of Trust

A mortgage itself is not a loan, but a promise of the loan, but the deed of trust is an agreement that establishes the document to be publicly recorded in a notary office or a County Recorder’s office. The act of faith is a monetary instrument, and it involves the start date of the loan, maturity date, and even the payment plans and trustee.

A deed of trust has three parties involved. One is the borrower, the second the lender, and the third the trustee. A trustee is a person who holds a legal title such as a bank. The security interest will be transferred to the trustee. In case the borrower doesn’t pay the lender, the trustee can take control over the property and sell it on behalf of the lender.

It is an essential document, and it must be signed by all the parties and must be notarized as per the notarized definition and process.

Subordination Agreement

A subordination agreement is when the lender has an equity line or second mortgage signs the subordination agreement to have the loan get presented when there is a foreclosure. Unless there is a subordinate agreement refinancing the first mortgage is nearly impossible. The respective parties must sign the document agreeing to subordination and also requires notarization.

Affidavit of Owners occupancy

An occupancy affidavit must be notarized. A per the notarization definition and principles, the owner’s occupancy document holds legal obligations to the borrower about the property. The property owner cannot rent the property, make another home as a primary residence, or apply for one that has a higher risk of default and has a higher interest rate. In short, it cannot be treated as an investment property. Hence the affidavit of owner occupancy. Homeowners are closing their mortgage agreements while away on a business trip or from the comfort of their home. Thus making the process of purchasing property much more accessible. It is also good news for the lenders as they can close their deals quickly and have increased the demand for notarizing documents involved in the mortgage process.

Signature Affidavit

A signature affidavit certifies that the signatures are legal and accurate on a notarized certificate. It is to comply with the notary definition of verification of signatures and signatories present for the act of notarization. Some lenders may remove this step in a mortgage process.


With a growing number of mortgage agreements, it has become evidently clear that people need a more seamless and quick notarization process. Hence the introduction of E-notarization is growing and has seen extensive growth in the last year. The notarized definition doesn’t change if the process is online. In fact, an online notary is much safer and has had a vast number of closing due to its quick and easy method of notarization.  There is a security code presented to the signatories, and it is confidential. They can enter the meeting, verify their face and their credentials online. Hence it reduced the number of failed closings for a real estate deal where people simply don’t have the time to turn up for a notary process.