How Homebuyers Benefit from eClosing
The process of buying a home can be overwhelming, and the paperwork involved can be daunting. Fortunately, technology has made this process simpler.
Electronic closings, or eClosings, are becoming increasingly popular and offer an easier, faster way to close on a home. Here’s what homebuyers need to know about eClosings.
What is an eClosing?
Put quite simple, eClosing is the future. 87% of industry members agree that eClosing is faster and cheaper.
A digital closing process that allows buyers to review and sign closing documents electronically. This type of closing is becoming more widely accepted throughout the real estate industry and is often used for both residential and commercial properties.
Benefits of an eClosing:
There are numerous benefits to using an eClosing for your real estate transaction. One of the major advantages is that it saves time by streamlining the paperwork process. By eliminating manual document collection and storage, it also reduces costs associated with having to print and store the documents. Additionally, eClosing ensures that all documents are secure and private, allowing buyers to have peace of mind knowing their personal information is protected from fraud or identity theft.
What Documents Are Needed For An eClosing?
In order for an eClosing to take place, there must first be a series of digital documents created and signed. These documents include but are not limited to: your loan application and agreement, title policy, closing forms such as settlement sheet and deed of trust/mortgage, survey report (if applicable), buyer’s disclosures and more. All these documents must be collected, reviewed and electronically signed in order for the transaction to proceed.
What Technology is Used for eClosings?
In order for an electronic closing to take place, several different technologies must be used. These include automated document assembly software, eSignature software and digital notarization technology.
So essentially, you need to gather the documents, have them filled them out, and then use a recommended Remote Online Notarization platform in order to have them notarized and signed electronically.
Are eClosings Safe?
Yes, eClosings are safe and secure. All documents are encrypted during transmission and stored securely on servers with industry-standard security protocols in place. Additionally, the Remote Online Notarization process ensures that all documents have been properly witnessed and notarized according to state laws.
They also create an automatic backup copy of your freshly signed closing documents as well as video storage of the session for more than 10 years. Now if there is any discrepancy with what is said in the signing, you can go back and take a look at it to confirm with crystal clear recordation.
Benefits of eClosings for Buyers and Sellers
For buyers, eClosings provide a safe and secure way to close on their home. They also save time by streamlining the paperwork process and reduce costs by eliminating the need for printing and storage of documents. eClosings can speed up the home closing process and make it easier for buyers to review documents in peace. Additionally, with less manual paperwork involved, mistakes are less likely and closing processes are faster. You can save 2-3 hours for each party involved in the process.
For sellers, eClosings ensure that all documents are securely stored and exchanged so they can be sure that their property is officially transferred properly. Furthermore, without the need for paper documents or in-person closings, selling a home takes considerably less time. You can close even if your client is out of state or away on business.
In conclusion, if you’re looking to close on a home quickly and easily, then an eClosing may be the right choice for you. With the help of technology, it has made the real estate process much easier and more efficient than ever before. So take advantage of this opportunity today!
By understanding the process of an eClosing and its associated benefits, homebuyers can make more informed decisions when it comes to their real estate transactions. As technology continues to improve, it’s likely that more buyers will opt for the convenience and efficiency of an eClosing over traditional paper closings in the future.
This article is intended as informational purposes only and is not meant as legal advice. If you have any questions about your individual situation, please contact a qualified attorney or real estate professional.