Frequently Asked Questions about Occupancy Affidavits for Notary Signing Agents
Notary Signing Agents encounter a variety of intricate documents when handling mortgage loan signings, some of which have specific or unique requirements. This article aims to address queries regarding the Occupancy Affidavit.
What is the Definition of an Occupancy Affidavit?
An Occupancy Affidavit is a document where a homeowner affirms that the property being financed will be their primary residence.
What is the Purpose of an Occupancy Affidavit?
Lenders typically provide lower interest rates to homeowners who reside in their primary residence due to reduced risks associated with property maintenance compared to absentee ownership (such as rental or vacation properties).
Are There Alternative Names for Occupancy Affidavits?
Indeed, an Occupancy Affidavit might also be known as a “Statement of Occupancy,” “Occupancy Statement,” “Occupancy Certification,” “Owner Occupancy Letter,” “Residency Affidavit,” or other titles. Sometimes, it may be labeled as an "Occupancy and Financial Status Affidavit" or similar, encompassing both occupancy and financial details in a single document.
Which Loan Document Packages Commonly Include an Occupancy Affidavit?
Occupancy Affidavits are frequently part of residential purchase and refinance loan packages.
Is Notarization Required for an Occupancy Affidavit?
While some do mandate notarization, others do not. Most lenders stipulate that an Occupancy Affidavit needs notarization with an oath or affirmation, with the borrower signing the Affidavit and confirming its accuracy in the presence of the Notary. Some forms might necessitate an acknowledgment instead, while others may not require notarization at all. Regardless of notarization, providing false information on an Occupancy Affidavit can lead to severe consequences, including fines or imprisonment. Notary Signing Agents should diligently review the Occupancy Affidavit in the loan package for notarial requirements.
Comments