Best Practices: Timing of Signatures

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Millie, is it acceptable for all parties not to sign on the same day?

Yes, this is acceptable. Not all parties are required to sign on the same date. There are several instances in which the borrower and seller (or borrower(s) on a refinance transaction) will sign their documents on different dates. In some instances, not all parties are located in the same area, causing the need for a mobile notary. There may also be what is referred to as a “mail-away” (where the additional borrower or seller are located outside the signing area and not able to attend the loan closing).

The document transaction date must be identified with an adjustment made to the disbursement (funding) date. Be sure and watch your investor overlays for any additional signatory requirements. For example, one particular investor, Flagstar Bank, requires that conventional loans be signed and/or notarized on or after the date of the documents, while government loans must be signed and/or notarized on or before the date of the documents. Any time you have a loan closing where the parties will sign on different dates, it is worth knowing your investor guidelines to ensure delivery of a loan that conforms to their specific closing requirements.