Loan Signing Agent vs Notary Public: What’s the Difference?

Explore the key differences between a loan signing agent vs notary public. Discover how each role notarizes documents and why it matters.

With over 4.4 million notarized documents processed daily in the US, it’s easy to see why people sometimes confuse the roles of Loan Signing Agents and Notary Publics.

Both are essential in handling legal documents, yet their responsibilities and required qualifications differ.

In this guide, we’ll break down these differences, clarify when each is needed, and explain the bonds they must have to work confidently and compliantly.

What is a Notary Public?

A Notary Public is a state-commissioned official who serves as an impartial witness in the signing of important documents. Their primary role is to verify the identities of signers, help prevent fraud, and ensure that all signatures are genuine and voluntary.

Main Responsibilities:

• Verify signer identities
• Witness signatures
• Prevent fraud
• Take acknowledgments
• Administer oaths

Types of Documents Handled:

• Affidavits
• Power of attorney
• Wills
• Basic legal documents
• Personal documents

What is a Loan Signing Agent?

A Loan Signing Agent is a notary professional specially trained to handle and oversee the signing of loan documents. Their role is to guide borrowers through complex loan packages, ensuring each document is signed correctly and all legal requirements are met.

Main Responsibilities:

• Guide borrowers through loan packages
• Ensure proper document execution
• Verify loan document signatures
• Maintain loan package integrity
• Meet closing deadlines

Types of Documents Handled:

• Mortgage loans
• Deed of trust
• Closing disclosure
• Title documents
• Loan applications

Loan Signing Agent vs Notary Public: Key Differences

Understanding the distinctions between Loan Signing Agents and Notary Publics is crucial, especially when handling loan documents or other specialized paperwork.

This section breaks down the unique aspects of each role, helping you choose the right professional for your needs.

Aspect	Notary Public	Loan Signing Agent
Basic Authority	State commission	State commission + LSA certification
Training Required	Basic state training	Advanced loan document training
Typical Fees	$5-15 per signature	$100-200 per loan signing
Document Scope	General documents	Specialized loan packages
Knowledge Level	Basic notarial acts	Advanced loan terminology
Bond Requirements	Standard notary bond	Enhanced coverage often needed
Availability	Regular business hours	Flexible, including evenings
Target Market	General public	Real estate industry

The Importance of Notary Bonds in Both Roles

Notary bonds are critical in protecting clients and ensuring accountability for both Notary Publics and Loan Signing Agents.

This section explores why bonds are essential for trust and compliance in these professions.

Why Notary Bonds Matter

• Protects the public from notarial misconduct or errors
• Required by law for both notaries and LSAs
• Provides financial security for clients
• Essential for maintaining professional credibility

How Notary Bonds Protect the Public

• Provides financial protection against notary misconduct or errors
• Allows victims to file claims for compensation
• Ensures notaries perform duties ethically and legally
• Holds notaries accountable for their actions

Notary Bond Requirements

• Texas Notary bond is $10,000.
• The LSA will need a higher amount of E&O insurance that we offer as well. The bond is still $10,000.
• Most states require bond renewal with commission renewal
• Additional coverage may be needed for loan signing work

Notary Public vs. Loan Signing Agent: Which Do You Need?

Need a document notarized or closing on a house? Here’s the difference between these two professionals.

When to Use a Notary Public

• Basic document notarization
• Simple legal documents
• Personal paperwork
• Standard affidavits
• Cost considerations

When to Use a Loan Signing Agent

• Real estate closings
• Mortgage refinancing
• Complex loan packages
• Time-sensitive transactions
• Professional expertise needed

Protect Your Notary Practice Today

Proper bonding is crucial for protecting your notary practice and building client trust. With the right bond, you ensure financial security for your clients and uphold your professional credibility.

TMD Surety Bonds offers reliable, affordable notary bonds tailored to meet legal requirements and client expectations. Safeguard your business and choose TMD for expert support every step of the way.

Contact Us Today!

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FAQ: Loan Signing Agent vs Notary Public

If you still have questions about the roles of Notary Publics and Loan Signing Agents, here are clear answers to some of the most common inquiries.

Who Can Be a Notary Public?

Anyone meeting their state’s eligibility requirements, such as age, residency, and a background check, can become a commissioned Notary Public by completing the necessary application and training process.

Why Do Legal Documents Need to Be Notarized?

Notarization verifies the authenticity of signatures, confirms signer identities, and helps prevent fraud, ensuring that all parties are signing willingly and knowledgeably.

Are Notary Services Required for All Legal Documents?

No, not all legal documents require notarization. However, notarization is essential for certain types, like affidavits, property deeds, and loan agreements, to ensure they are legally binding and enforceable.