Does the customers signature need to reflect exactly as listed on the note, security agreement, etc? For example, the promissory note states John Doe, however, the note was signed John D. Doe. Is that alright.

Are you selling the loan on the secondary market? If it is an in house loan I don't think it's a big deal but if you are selling the loan some of them are more specific. We mostly make sure the way the note and the security document are signed is identical.

I don't think it should matter whether you sell the loan or not- you should always be consistent with all the documents and the name that goes on the mortgage should be just like how it appears on the title- you might have to put AKA etc on the mortgage if the application and note don't match the mortgage.

I have another question. If you find that the names are backwards on the documents ie last name first. Is it okay to draw arrows and have the customer(s) initial or should the docs be reprinted correctly?

That's up to you- I would re-do the documents- if the mortgage was especially that way-
if you choose to do arrows and initial make sure the borrowers initial the documents. Also, steps should be taken so that doesn't happen again. Just my opinion.