I would like to know if after I have all the necessary documents do I HAVE to go to the consulate to have them notarized by the consulate or by any notary and which documents must be notarized?

Which documents are you asking about? I opted to visit in person, and every thing was taken care of there. I didn't have anything previously notarized before I went in. They did everything there on the spot, and they gave me my new passport within an hour. Highly recommend going in person. It's not obviously clear online what needs to be done, but as long as you have all the requisite documents (birth certificate, etc), everything can be done in person at the consulate. We also went on a Monday, and there were only a handful of people there. The whole process (including walking to the nearby post office for a money order) took around 1 and 1/2 to 2 hrs. I did all this about a month ago. Highly recommend going in person.

It's all on their website. http://cgwashington.itamaraty.gov.br/pt-br/passaporte_para_maiores_de_18_anos_no_balcao_do_consulado.xml