At the end of your home financing journey, you’ll be asked to sign your closing documents. These documents finalize your home financing and the real estate transaction. You may have the option to electronically sign (eSign) these documents, physically sign on paper, or a combination! The process of signing and finalizing these documents is often called a closing or signing.
One of the documents you’ll sign is called the promissory note. The promissory note (sometimes referred to as the Note) is a legal document signed by the borrower promising to repay a loan. They’re used for many different loan types including student loans, car loans, and mortgages.
Requirements for promissory notes can vary by state, however in general they outline the following terms:
- The payor or the person who is taking out the loan and responsible for repayment
- The payee or the individual or party lending the money
- The start date of the promissory note
- The end date or last day of the scheduled loan
- Principal or total amount borrowed
- Interest rate charged on the principal
- Loan length or how long the loan will last. It may also be called the maturity date.
The promissory note is an important legal document to help ensure the lender and borrower are on the same page regarding the details of the loan and subsequent repayment terms. It also serves as a reference if there are any future questions about the loan.
Most of the time, you will physically sign this document. At Evergreen Home Loans™, some loans are eligible for eNote or the ability to eSign the promissory note. You may be eligible to eSign the Note along with your other closing documents, offering a virtual and streamlined closing. Learn more about the benefits of an eClose here.
Interested in learning more about eNote, eClose, or getting started on your home financing journey? Contact an Evergreen loan officer near you.