Gone are the days when you would have to sign papers. Now, when you have to sign an important document such as mortgage loan paperwork, you can do it online. More and more industries are shifting to online transactions. This time around, it is the real estate industry. As the need for transparency increased in the financial world, many thought digitalization was the way forward. Moreover, it has transformed the home buying process, making it a smooth and convenient process. This process where you can complete the entire closing process online is called eClosing.
Let us learn about what eClosing is and how it works.
eClosing- A detailed Insight
eClosing refers to mortgage closing where all the paperwork and transactions occur online instead of on paper. eClosing is, therefore, sometimes called eMortgage. Some of the elements of eClosing include eSigning, Online notarization, and eNote.
In eSigning, the closing documents can be accessed by both parties online, and they can sign them electronically. Not only this, the signatures and documents are notarized online without visiting a notary physically. Then. You can sign on the original electronic promissory note on the eClosing platform. All this means that eClosing streamlines the home-buying process, making it easier and seamless to organize documents, sign them, and share them with the stakeholders.
In order to benefit from the eClosing platform and bring all parties on one page, lenders need to invest in a reliable eClosing platform and, of course, the internet remains a prerequisite in this. If you have the internet, as in a reliable one, you can make a mortgage a less stressful task for yourself and your clients. Make sure, you have a quality internet connection like Cox (News - Alert). It offers excellent speeds and comes with free advanced security. Check out Cox en español to learn more (For Spanish-speaking customers).
How Does eClosing Work?
eClosing is just the same traditional paperwork transformed through the internet. The medium of the mortgage closing is changed while the process remains the same. However, not all eClosing works the same way.
Some of the types of eClosing are:
As the name implies, it refers to the process where the parties close from remote locations. The parties sign documents electronically, documents are notarized online, and eNote is also filed online. During the process, they may communicate through video and audio calls.
There are still many people who prefer to have one-on-one conversations and keep the process partially remote and partially physical. In this mortgage closing, the parties meet in person and may sign documents electronically.
Anyway, here is what you should expect from a run-of-the-mill eClosing:
The lender will upload the documents on the closing portal for the buyer to access and review. The buyer will sign the documents annotated to accept signatures after reviewing them skeptically. The lender may upload the documents after signing from his end. Once the signatures are completed, it will be sent to the lender to finalize.
Benefits of eClosing
There are many benefits of using eClosing. For one, it streamlines the paperwork process and saves you time and energy. Here are some of the major benefits of using an eClosing platform.
The best thing about eClosing is that it offers customers as well as lenders a hassle-free approach to signing their documents. The portal has all the required documents in a single location for all the stakeholders to access and sign. This is, thus, an easier approach to complete the process than the traditional method.
Manual processing and underwriting take lots of time. Lenders are able to complete mortgage closings in a span of a month or more. However, using eClosing can expedite the process, resulting in lesser cost consumption. Moreover, it reduces the costs which are associated with printing and storing documents.
The documents are shared on a highly safe portal with multi-factor authentication and digital audit trails as they hold sensitive information. As a result, you have peace of mind that your personal information is protected from identity theft and fraud.
To err is human. Manual work requires you to review documents again and again. But when you use eClosing, there is less probability of errors. It can easily identify faults and allows you to fix them accurately. All of this will, again, save you time and embarrassment.
When you are able to make mortgage closings without spending extra time and money, from the comfort of your place, you ought to have a good experience. eClosing makes closing easier and faster, making it a super smooth process.
Bottom Line
eClosing is a great innovation in the so-conventionally-run real estate industry. It allows parties to share and sign documents electronically, providing them with ease and feasibility. With time, it is expected that more and more real estate companies will hop in the trend, shifting completely to full digital eClosing.
