Updated 6-10-21. Becoming a Notary Signing Agent comes with a lot of perks, and it can be a life changing path for those who take it seriously enough to invest time, energy and resources into it. Fortunately, the start-up costs are among the lowest for small businesses, and you can begin with necessities and gradually scale up as you start earning revenue.
The NSA business offers flexibility, as well as the opportunity to succeed either as a part-time side hustle or a full-time occupation. However, it’s important to look at the real-world investment to get started and evaluate what kind of return you can expect as an NSA.
The cost to start a Signing Agent business can be broken down into 4 broad categories as follows:
- Your Notary commission, background screening and NSA certification
- Errors and omissions (E&O) insurance
- Equipment, technology and supplies
- Marketing materials
Commissioning, background screening and NSA certification
Keep in mind that you must be a commissioned Notary Public in your state to work as a Notary Signing Agent. If you’re already a Notary, then this cost does not apply. If you are not a Notary, the cost of getting a commission can range from less than $100 to more than $500, depending on state requirements and the vendor you choose.
The next step is to get certified as a Notary Signing Agent. Keep in mind that certification is not required by law. However, many lenders and title companies require certification for the NSAs they use to show that the Signing Agent has additional training and qualifications to perform loan document signings.
Certification can include a training course and test, and there are several options. The 3 most commonly accepted certifications right now are:
The cost of these certification programs ranges from as low as $70 to nearly $500.
Apart from certification, many companies require Signing Agents to undergo annual background screenings. The NNA’s certification includes a background screening and is accepted by nearly every hiring company in the United States. If you opt not to get the NNA certification, there are many independent background screening companies available, and it could cost somewhere between $30-$60. (Make sure the background screening company you select is accepted by companies that you want to work with).
Some states have additional licensing requirements for Notaries to work as Signing Agents. For example, Maryland and Indiana require title insurance licenses for all closings, while Minnesota requires you to have a closing agent license.
Errors and omissions insurance for Notary Signing Agents
As with certification and background screenings, NSAs generally are not required by law to carry errors and omissions (E&O) insurance. Most states require Notaries to obtain a surety bond, but this is different from an E&O policy.
Notary E&O insurance is required by many companies that give you loan signing assignments. The minimum policy amount recommended by the Signing Professionals Workgroup is $25,000. Some companies want Signing Agents to carry larger policies.
A $25,000 policy could cost $20 to $40 a year; a $100,000 policy could cost $100 to $175 a year. Costs vary depending on the state and insurance carrier.
NSA equipment, technology and supplies
There are several items essential to your work as an NSA. They include the following:
- Smartphone
- Computer or laptop
- Dual-tray printer and related supplies
- Scanner
- Secure email
- Carry bag
Smartphone. Most of us already have a smartphone, but they are indispensable to NSAs. Having a quality smartphone, with higher storage capacity, will serve you well. Many of the companies uses app technology, text messages, emails and phone calls to give out signing assignments.
If you do not already have one, an unlimited cellphone plan is best because it gives you the freedom to use your cellphone without worrying about running out of minutes or the number of texts you can send. Phone plans vary by carrier and can range from $50 to $100 a month.
Computer or laptop. Some experienced NSA’s can run their business almost entirely from their smartphone. In the beginning, that may not be feasible for you. You will want a quality computer or laptop for business management and printing documents. Because loan signing agents need to be mobile, you may consider a laptop computer, as it will be the most versatile in your new business.
I’ve found that “chromebooks” do not provide the full functionality you may need, so a full laptop computer is the best option. These can often be found on sale for between $300-$500.
Dual-tray printer. A dual-tray printer is crucial because loan packages contain both letter- and legal-size paper. Most major brands have quality products, so brand is not that important.
Here are a few things to keep in mind to get the best printer that fits your budget and needs:
- You’ll only need to print black and white, so monochromatic is okay.
- You only print single-sided, so you don’t need the duplex functionality.
- Loan packages typically have 100-300 pages (and you print two of them), so print speed is a consideration. Aim for 30-50 sheets per minute or faster.
- I recommend a laser printer over an inkjet for cost efficiency and industry preference.
Printers can vary in price, but there you can buy a good model for less than $400. The Brother HL6200 Dual Tray, for examples, lists at $320. All-in-one printers do not have the best reputation among NSAs because they seem to fail more often.
Don’t forget that your new printer will need supplies. You’ll likely want to get a case of both letter size and legal-size paper. Be sure to have extra toner on hand too, because there is nothing worse than running out of ink in the middle of printing a loan package.
Cases of paper can run between $15-60, depending on where you get them, and toner can run $60-$120. Some printer brands work fine with generic toner cartridges, but you’ll want to spring for the name brand toner for the model you are purchasing. These products are designed to function well together.
Scanner. Many companies now require what are known as “scanbacks” or “faxbacks.” This means you may need to scan documents after they have been signed by your customer/signer. Scanners run the full gamut of function and pricing, so here are a couple options you can use to fit your current budget:
- Small mobile scanners (Like the Fujitsu ScanSnap) cost around $70-$120. These are easy to use on the fly. They can scan 15-20 pages at a time, so it may take some time to scan an entire loan package.
- Large scanners that are still mobile capable (like Epson 500 series or Brother ADS2700 series) cost $400-$650. They are fast, and you can usually scan 50-75 pages at one time.
Many new NSAs opt for the less expensive alternative and then scale up as their revenue increases.
Secure email. Protecting consumer personal and financial information has become a major priority for lenders and title companies because loan document packages contain just about every piece of information an identity thief would want. Anytime you transmit data you will want to use encrypted email services or even secure portals. Secure email accounts can cost anywhere from $60-$150 per year.
Carry bag/briefcase. Having everything you need in one place will make your life much easier. Consider investing in a shoulder bag, briefcase or rolling office. A good bag will last you years in this business and should cost between $50-$150. You may need to carry several loan packages at one time (including letter- and legal-size pages), so take that into consideration as you choose size and style.
Marketing costs
One of the expenses new NSAs can easily overlook is marketing. But marketing yourself is absolutely vital for launching a successful business of any sort. For NSAs, start-up marketing costs should include such things as:
- Business cards
- A website
- Notary directories
Business Cards. These don’t have to be fancy, and you can have these printed locally or through major online brands for anywhere from $10-$30 per 100 cards. Often the more you buy, the less you have to pay per card.
Website. Having a website greatly enhances your visibility (especially if you do Notary work outside of loan signings). You will only need a basic website to get started. There are some trade-offs for having a free website, so do your research before you make a final decision. Do-it-yourself website builders, like GoDaddy, can run anywhere from $5-$30 per month — or $60 to $180 for the first year. If you hire a web developer, that can run anywhere from $300-$2,000.
If you’re really on a tight budget, consider utilizing the free resources available from Google My Business (GMB). GMB has lots of tools to help customers find your business online, including very basic web pages, search engine optimization tips, maps, etc.
Notary Directories. There are a number of online Notary directories NSAs use. While every directory has its pros and cons, in my experience there are 5 directories that consistently connect NSAs with potential clients:
- SigningAgent.com (You get this listing automatically once certified through the NNA)
- NotaryCafe.com
- NotaryRotary.com
- NotaryStars.com
- 123Notary.com
Some of these directories have a choice between a “free” profile listing and a paid premium option. At the very least, set up the free option and you can gradually upgrade as you grow your business and start earning revenue.
Total Investment
Overall, the estimated startup costs for a Signing Agent business venture can range anywhere from around $1,200 to $3,800 or more. If you’re not yet a Notary, don’t forget to include commissioning costs in your budget.
As you get started, you’ll need to plan for additional costs of operating and growing your business. These can vary greatly, depending on many factors. A good example is vehicle expenses such as gas, maintenance, tires and additional auto insurance.
Remember, you’ll need to continually invest in education and innovation to make your business more efficient and enjoyable, both for you and your clients. But this business can be very lucrative for those on a “shoestring budget”
Bill Soroka is the author of the Amazon Best Selling Book, “Sign & Thrive: How to Make Six Figures as a Mobile Notary and Loan Signing Agent” and host of The SideHustle Lounge Podcast.