In the last decade we’ve watched retail, pharmacies, and other major commerce move to online platforms and become standard expectation in everyday life.
The real estate market is no different and a shift can be seen into a digital based platform. Since 2020, we’ve all seen how easy and convenient virtual appointments are, why not think bigger?
More and more financiers are seeing significant interest in 100% virtual closing options by younger generations. Not only has virtual homebuying become more common within the past few years, but it’s now a preferred closing method; Lenders are gaining a competitive edge with more flexible options offered.
So what is an eClosing? Sometimes called a digital or eMortgage, it boils down to the same thing: it’s all that mortgage paperwork you have to review and sign, but done completely online. Wondering how that’s possible? Via an eClosing platform partnered with your lender to facilitate a secure transaction.
eClosing platforms understandably require a higher level of verification than a face to face closing and use FDIC-level software to protect data and documents uploaded to the platform. All digital closings may seem risky at first glance, there are actually more errors found during a traditional mortgage closing.
Not all buyers and lenders are totally comfortable with a fully virtual closing, however. Many use another hybrid closing model, having some documents sent and notarized online and signing the promissory note in person. Any of these are valid, legal ways to complete the final step in purchasing a home.
One of the many benefits to moving closings online is the sheer amount of time saved. Gone are the days of “originals” and paper files. By using eClosing software to securely transfer encrypted documents and finishing a completely online closing, lenders can take a week off their expected time frames.
Online notarization cuts out hours of time spent during closing, but more importantly, it reduces the cost. eClosing platforms are always going to be a fraction of the cost, offering low-priced notarization for either subscription or a one-time fee. Even operating on a hybrid model, lenders are already saving upwards of $150 and a fully online closing can save up to $444 in closing costs.
Thinking about offering eClosings but not sure if the interest will match the effort? Partnering with a trustworthy eClosing platform is key! Offering the convenience of at-home closings is something anyone looking for a high ROI should be benefitting from.