The mortgage industry is seeing a rise in the number of applications and new home sales are not coming down. However, there is a disparity in the incomes of home buyers as there is still a considerable population that is not able to meet the threshold limit even for affordable housing. Contrarily some people are purchasing their second homes as an asset allocation requirement. Whenever there is second home-buying, people normally buy for reselling and renting in-between. So they will be looking for areas with the scope of real-estate price appraisal and decent rental yields. They may even look at places that are out of their state but are good bets for the future. Owing to their lifestyle requirements they prefer electronic closings that allow them to seal the deal with an eSignature from the comfort of their current location.
In an eClosing or an electronic closings, the parties can close their mortgage and handover over the property virtually unlike the in-person meetings in a traditional closing. There are hybrid forms of electronic closing where part of the paperwork is carried through a paper route. But a complete eClosing has all features like eNotes that are digital counterparts of a promissory note which is signed digitally using an eSignature. The entire process can be carried out while the actual buyer is sitting in a different geographical location without any snags or hitches. Electronic closings have several advantages which make them an indispensable tool to enhance the digital mortgage experience in totality. Here are some of the benefits of using eClosings:
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Takes Digital Mortgage A Notch Up
It’s no fun owning a Tesla, if you cannot experience driverless driving at least when the situation permits. Likewise, a fully automated experience should entail every stage of the mortgage in the virtual medium. Had it not been for a facility like eClosings, then the buyer would have had to physically walk in to sign the documents for buying a house. It adds the feather in the hat of the digital lenders trying to amp up the experience of their consumers.
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Potential To Scale
As the eClosing wave catches up, there will be more investors from different locations who would like to own their summer or country homes. This will give a rise in the sales curve of new home listings and mortgages. With the ability to close loan applications at a faster rate, digital mortgages will require eClosings to finish the process and close the real-estate purchase.
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Reduce Costs
The operational cost of digital loans is far less than that of a traditional paper-based loan. eClosings are less expensive as the platform charges are comparatively less than an in-person closing where a promissory note is signed and stored for safekeeping in a place that runs overhead costs like rent and salaries.
Conclusion:
Paperless does not mean paper trail does not comprise eClosings. Every action is recorded with a time and date stamp. So if a person has accessed the data about the closing, then their name, designation, location, time, and date will appear in the platform. So, it is a reliable way forward.
