You can describe the home-buying process in many ways: exciting, stressful, complicated, and bureaucratic. From accepted offer to closing, and across contingencies and underwriting, there are many opportunities for the home-buying process to go awry. When you've finally crossed every hurdle, overly cumbersome document signings shouldn't present a final roadblock.
Let's take a look at why embracing eClosings is a good idea for buyers and sellers alike.
An eClosing is a mortgage closing where some or all of the key elements of the transaction occur online, rather than on paper. The elements of an eClosing include eSignatures, online notarization, and eNotes. While some agents, lenders, and homebuyers use multiple tools to conduct these digital transactions, others embrace eClosing platforms, such as Notarize, to get transactions across the finish line.
The benefits of eClosings
Throughout the home-buying process, time is of the essence. Between offers, underwriting requirements, and due diligence deadlines, there are many moments where documents need to be created and signed quickly. eSignatures address many of these scenarios.
But when it comes to closing, many lenders still require in-person signatures, which is another opportunity to slow up the transaction and cause more errors. eClosings help to eliminate these roadblocks and improve the selling and buying experience. Let's take a closer look at the benefits.
Quicker transaction times
The home-buying process is notoriously cumbersome and time-consuming. While an ever-increasing number of transactions can happen online, the average mortgage closing still requires people to drive to the closing to ink sign and notarize documents in person. With eClosings, signatures and notarizations can happen in just a few clicks. In fact, a Marketwise study shows that adopting eClosing can eliminate up to 7 days in the processing/funding cycle per loan. Digital signatures and online notarization streamline the entire home buying process, from the offer stage to underwriting to closing.
Increased efficiency and convenience
When going through the home buying process, few things are more frustrating (or nerve-wracking) than waiting for signatures or closing documents. eClosings give everyone involved in a home buying transaction a more flexible and convenient way to close and more visibility into the transaction. eClosings also allow buyers and sellers to close from anywhere, removing the stress around having to travel to an office to sign and notarize documents to complete the sale.
Improved security and reduced errors
Putting pen to paper seems official, but it's also time consuming and prone to error. eClosings can result in a 33% reduction in errors, saving time for all involved in the transaction. And with a safe eClosing platform like Notarize, data is encrypted and recordings of each transaction are securely stored in the event that they need to be accessed in the future.
As almost every industry, including the real estate industry, continues to accelerate digital transformation, more buyers and sellers will also demand fully digital mortgage closings. Ask your real estate agent and lender about the option to close with eClosings for a quicker, more convenient way to close.