Residential loans are loans extended to individuals. Usually, these are secured by a mortgage on a piece of real estate that is used primarily for residence purposes. Some people apply for a loan as a means for financing the purpose of a family home. Others apply for a loan and execute a mortgage over their property for the purpose of renovating their home or for meeting emergencies. The mortgage makes the real property a security for the repayment of the loan. In case the borrower fails to pay the loan, the lender can take the property which was used as a security for the loan and sell it in order for the lender to get back the money lent to the defaulting borrower.
Usually, residential loans are paid long-term – a minimum of 15 and a maximum of 30 years. In repaying the loaned amount, the borrower will pay an amortization. This amount represents a portion of both the interest and the principal for the loan.
The lender usually agrees to extend a loan after an assessment of the borrower’s ability to repay the loan as well as the value of the property which is mortgaged as security. This is unlike a commercial real estate loan which is extended on the basis of the value of the property itself and thru potential income it can bring.
Commercial real estate loans are usually applies for and extended to corporations or business organizations. The loan is secured by a mortgage over a commercial real estate property. A commercial real estate property is one that earns income, like a parking building or an office building or an apartment building, condominium or a mall. The amount that will be loaned depends upon the income which the real estate usually earns. Commercial real estate loans are usually paid with a shorter term, maybe five or ten years.
In the event that the borrower fails to pay the loan, then the lender can go after the commercial real estate property and sell it or administer it so that the income it generates will be used as repayment for the loaned amount.
In both types of loan transactions, a notary or a signing agent is required. The notary often worlds to coordinate with the borrower, the lender and the title agent to ensure that all the required documents are signed and notarized. The notary or signing agent will also make sure that the signatures on all the documents are genuine and that the parties who signed the documents are who they say they are.
The notary will then determine from the borrowers if they have read and understood the contents of the loan documents and that the loan is something they voluntarily agree to. After the notary or signing agent is satisfies with the genuineness and due execution of the loan documents, the notary or signing agent will record the transaction, and affix a notarial seal on the documents. In case of any litigation arising from the transaction, the signing agent will be a disinterested witness and will be called to testify in court
Notaries need to be competent, experienced and efficient. For help in obtaining the services of a notary in the Brooklyn, Queens or New York City areas please send an Email or call us at 718-701-0095. Our notary is a duly licensed Attorney and Notary Public in the state of New York. She travels to jails, businesses, homes, nursing homes and hospitals. Notary and Signing Agent Services Offered: loan closings, trusts, power of Attorney, wills, sales transactions, acknowledgments, affidavits, bank forms and other legal documents.