Glossary of Notary Public, Mortgage, Signing Agent,�and Loan Signing Terms.
Function: noun
The Occupancy Affidavit is for the borrower to swear that they will be living in the property they are borrowing for rather than leasing the property to a third party. It is common for individuals who are investing in a second or third property to misrepresent themselves on this document by claiming to intend to reside in a particular property, as that claim could reduce their interest rate by roughly half a percent. Another option on the occupancy affidavit is to claim that the property is going to be a second residence which also might result in a decreased interest rate.
Another possibility, is that the borrower lives in the property for one year, and then rents the property out, which might be acceptable to the lender. Lying on the occupancy affidavit is commonplace and could have consequences in the long run if the lender ever researches who is actually living in the property being borrowed upon
The Occupancy Affidavit is one of the documents in the loan package that is always notarized with a Jurat. Please visit the Jurat section of our glossary to learn about this particular notary procedure which requires a sworn oath and is required to be signed in front of the notary public.
Another name variation for the Occupancy Affidavit is the Occupancy Affidavit and Financial Status where the financial stability of the borrower is questioned. The purpose of the financial status section of the document is to find out if the borrower will have any issues making the first several payments.
