Who Keeps The Original Promissory Note?

Who Keeps The Original Promissory Note?

If you are applying for a mortgage loan then it is important to familiarize yourself with all of the paperwork and what kind of documentation you are expected to sign throughout the process.

This will prevent any confusion and will also mean that you know what to expect from the mortgage application process. With so much documentation to keep ahold of, you may inevitably end up losing some of the paperwork as you get towards the end of the process.

Who Keeps The Original Promissory Note?

However, there are original documents that you need to keep safe to prevent any problems from occurring in the future. One such document is the original promissory note as you will need it to proceed with applications such as foreclosure litigation.

If you don’t have the original copy then you will be classed as having no authentic proof will cause huge problems and even force you to default into defending yourself against foreclosure.

In this guide, we’ll be taking you through everything you need to know about the promissory note, what it is and who keeps hold of the original copy. This will mean that not only will you understand its importance during your applications but also know what to expect when signing it.

What Is The Promissory Note?

Applying for a mortgage will see you inundated with lots of documentation. However, while it may seem overwhelming at the time, there are three main pieces of information that you should keep an eye out for during the process.

Here are two of the three documents that you need to keep note of:


The first of these is your mortgage which will take the form of a security instrument or a deed. This document will show that the mortgage has been approved and that you are the owner of the property and are responsible for any issues regarding any repayment failures.

Due to the document explaining how you are responsible for the property, it bears the name security instrument among certain people as this document is needed if you default on any of the terms and conditions of your mortgage agreement.

Promissory Note

The second document that you need is known as the promissory note which is a document that shows that you will repay the mortgage loan according to the terms and conditions laid out in the document.

Until you have made your repayments in full, the lender will keep the original copy of the promissory note but you can request a copy as well.

The promissory note will contain a lot of information regarding your mortgage agreement including how much money you are borrowing, the total interest rate and whether it is fixed or adjustable, the dates when the payments are due, the total time that you have for repayment, the place where your payment has to be canceled if needed and what consequences you face when making a late payment.

Other forms will be required when closing which include the deed to the property and the escrow disclosure statement among much more.

What is specifically required is dependent on your lender so make sure that you ask them what they require to move the closing process along as quickly and efficiently as possible.

The promissory note and mortgage documents are usually the only key documents needed in other proceedings such as foreclosure so making sure you know the locations of both is essential.

Rules Depending On The State

The state where you are making your mortgage application can cause the rules to be different when it comes to what proof and documentation you need to proceed with the application.

States such as New York will request the original copies of the aforementioned documents if you are going through the foreclosure process.

If you are unsure as to which documents are especially important to keep ahold of, always ask your advisor who can tell you what is required should you have to go through other processes in the future.

If you don’t have the original documents to hand then you may find yourself in a lot of trouble and you’ll have to defend yourself during legal proceedings.

No matter what state you live in, the mortgage and promissory note should always be kept in an extremely safe place at all times should you need them in the future.

Where Are Promissory Notes Kept?

Once you have made your mortgage payments in full, you’ll be given your original promissory note which should be kept in an extremely safe place such as a safe deposit box or another similar storage facility.

You should have copies of the promissory note made which are then kept in a different location should you need them.

Promissory notes are legally binding whether they are handwritten or typed. So long as the signature is not forged and is genuine, the promissory note can hold up during legal proceedings.

However, handwritten promissory notes have an abundance of disadvantages such as evolving language as well as taking a longer period of time to draw up.


Overall, the promissory note is one of the most important documents when it comes to the mortgage application process. This is because the promissory note contains all the details regarding the mortgage in question.

The original copy of the promissory note will stay with the lender until the mortgage has been fully paid and then it is given to the borrower. This is important as if you are forced to undergo foreclosure in the future, then you will need the document as proof.

Just because you don’t keep the original copy of the promissory note does not mean that you are not given a copy. Make sure that if you do have your copy, that it is kept safe and know the whereabouts at all times.

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