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In order for you to understand the scheme of things andwhere you fit in, we offer you the following "Anatomy of aLoan". This may help you to understand how importantyour job is and how many people depend on you to do yourjob right!For a borrower to obtain a loan involves a lot of people in alot of different jobs, each one dependent on the other to geta loan to funding and closing.

,~:.Always remember that one mistake on your part coulddelay or cause a loan to cancel and everyone's work will bewasted. Beaccurate, be thoughtful, be Professional!

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Anatomy of a Loan1. Borrower applies for the loan.2. The lender or mortgage company then begins to process the loan by

collecting all of the information required to approve the loan.The Lender is the Bank, Credit Union, etc. who will actually beloaning the money to the borrower.A Mortgage Company is the middle man who gathers all of theinformation for the lender to approve the loan. They do all ofthe leg work.

3. Inf?rmation and documentation are then given to an Underwriterwho is responsible for reviewing all aspects of the loan request andeither approves or disapproves the loan.

4. At some point, usually after loan has been approved, an escrowaccount will be opened with either an escrow or title company.

Escrow Officer is responsible for opening an order with thetitle company, preparing instructions for the borrower to signand handles all of the paperwork including documents until theloan process has been completed which is the close of escrow.

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• 5. The Title Company will initiate a search of the public records todetermine all of the information for the property in question. Theywill prepare a Preliminary Report where any and all. recorded liensagainst the property will be disclosed which can include Deeds ofTrust, Mechanics Liens, Child Support Liens, Judgements and anyother type of lien affecting the property. These liens mayor may not berequired to be paid off by the borrower prior to the close of escrow.The lender or mortgage company is provided a copy of this reportwhich also shows now the borrower is on title, easements on theproperty and the tax status.6. After the loan is approved, the package goes to a Loan Processor~ho is responsible for preparing the documents for the borrowers tosign.7. Now the documents are ready to be signed and the borrower iscontacted to determine where and when the documents will be signed.Sometimes the Notary will meet the borrower at the escrow office, titleoffice or for the convenience of the borrower, at their home or office.There are times when you as a Notary will go to hotels, parks, bars,libraries, parking lots, restaurants and other strange places to meet aborrower.

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,""So now that you can see that there is a whole group of peoplewho's job it is to help a borrower obtain a loan we hope you willunderstand how important it is, and how many people dependon you to:Handle the loan package with care and do your best to be errorfree.Work with the borrower to make the signing go smoothly andsuccessfully, leaving a good impression behind. Often times youare the only face to face contact the borrower has in connectionwith their loan.Keep the lines of communication open so that everyone involvedis aware of where you are in the process of signing and where thedocuments are at any given time.Make sure that the loan package is shipped per instructions assoon as it is possible and without delay.

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