Though the concept of mortgage eClosing requires a face-to-face meeting, the overall procedure is all about signing the mortgage documents digitally. We are living in a digital era and every business domain, including the mortgage industry, has been severely impacted by the latest technologies and digitization. Also, the rapid increase in mortgage services has led to the efficient outsourcing of loan processing, etc. to a renowned mortgage closing company.
Though you might imagine that the complete process of mortgage eClosing can be done from your comfort zone at home, well, that’s not a reality. But, generally, mortgage eClosing works faster than the traditional means of mortgage closing services. The mortgage closing companies will ensure to keep you updated at every stage.
Let’s Understand About eClosing
As said, eClosing is a process of loan closing wherein the mortgage documents are signed electronically. To describe briefly, mortgage loan closing is a process wherein the buyer and seller analyze/sign the documents. Once they get through the signing stage, your loan and property transfer will be finalized.
Previously, the procedure of mortgage loan closing was carried through papers and pen. Even today, a few of the crucial mortgage documents undergo paper-based management. These documents consist of the transfer deed, promissory note, mortgage deed of trust, etc. Whereas, on the contrary, the lesser priority documents include mortgage closing disclosure and many more.
Types of eClosing
Basically, you can categorize the mortgage eClosing into three types:
IPEN – In this type, the loan borrowers and the notary meet face-to-face, wherein, the mortgage documents are signed digitally through the use of a tablet or a computer.
Hybrid eClosing – A majority of the eClosing are hybrid in nature. The loan borrowers and notary ensure to meet each other in person. They make sure to sign a few mortgage documents electronically whereas, a few are taken care of through the traditional measures.
RON – Also known as ‘Remote Online Notarization, the borrowers and notary meet virtually (through a video chat or webchat) and the mortgage documents are signed electronically. Generally, this eClosing is used minimally as yet most of the states haven’t approved the concept. When you talk about the US, states including Texas and Florida have already carried out the RON eClosing.
Process of Mortgage eClosing
As we discussed, the traditional mortgage closing process revolved around papers and pens. But things have become quite different in the eClosing process.
In the process of mortgage eClosing, the initial stage requires the signing of documents digitally. You can sign digitally through name typing, putting up a screenshot of your signature, and making your signature with the help of your finger on the tablet or phone.
During the mortgage eClosing process (even in the traditional technique), the notary has to confirm the identity of the home loan borrowers. When you meet in person, the process involves the display of your government-approved identity card. During the webcam meet, you need to hold the ID card in front of the camera, and further, you will have to undergo a brief questioning.
How does eClosing benefit lenders?
- The digitized documents will cover the monitoring mechanisms and guarantee the delivery, acceptance, and acknowledgment of the mortgage documents. This is one of the foremost benefits of eClosing.
- The eClosing mortgage processing includes no paperwork, thereby, significantly contributing to the cost reduction.
- The digital documents cannot be submitted with the missing signature, which is not otherwise with the paper-based mortgage closing.
How does eClosing benefit borrowers?
- The borrowers can execute the eClosing from wherever they want to, making it highly convenient.
- The borrowers will accomplish a deeper and good understanding of the mortgage process.
About Mortgage Outsourcing 360
Well, if you are searching for an offshore-based mortgage closing company, Mortgage Outsourcing 360 would be the ideal choice for your business. With the integration of contemporary trends and eClosing tactics, we’ll ensure to render customized outcomes for our clients affordably.
For further communication, you can drop us a query at email@example.com