Closing on a house can be a stressful experience. There are so many factors to consider and steps to take before you can finally close on the house of your dreams. This includes saving up for a down payment, whipping your credit score into shape, meeting the debt-to-income ratio, and finding a home within your price range in an area you want to live. It's a process, and the pandemic has changed that process; however, new technology makes it easier to purchase a home. This advanced technology has created a new procedure called eClosing, which makes the relocation process become smoother and simpler.
What is eClosing?
An eClosing is a digital mortgage closing that allows you to sign some or all of your mortgage loan closing documents online using a secure portal. Digital mortgage closings allow customers to electronically sign a majority of closing documents and not spend hours wet signing a stack of documents.
eClosings are similar to traditional closings, as the home buyer is signing documents to purchase a home with aspects of the process being done via electronic signature and video conference. You will still have to verify your identity as you would in a traditional closing, but your notary might do this on video conference. Video conferencing software may now be used to interact with other involved parties such as the notary signing agent.
An eClosing is also useful when the buyer or seller can't be present at the closing for some other reason. People use eClosings in cases where a buyer wants to relocate and purchase a home out of state, not bother with traveling to a closing office or if they want to limit contact during a pandemic. Premia Relocation Mortgage offers DigitalMove™ eClosings that serves these various needs.
All eClosings result in a closed home but they do differ slightly. There are three types of eClosings: hybrid eClosings, in-person e-notarizations (IPENs), and remote online notarizations (RONs).
Hybrid eClosings are virtual closings in which some documents are e-signed and e-notarized, while others are "wet signed" and notarized in the typical fashion. Each party is present in person at a closing office.
In-person e-notarizations (also known as full eClosings) involve all parties signing documents electronically while in the same room as the e-notary.
Remote online notarizations are closings in which the documents are e-signed and e-notarized through video conferencing software. This method is completely contactless.
In response to the recent pandemic, some states have temporarily relaxed their regulations to allow remote notarizations. Some of these states still require the documents to be signed on paper instead of electronically, but the notarizations may be performed via a webcam.
Benefits of eClosing
Better Customer Experience
With an eClosing, you'll experience a quicker and simpler signing process, thus a better customer experience. You'll also be able to review your loan documents before the closing and experience a more informative and efficient closing process (unlike a traditional closing).
An eClosing reduces not only your risk of spreading or contracting the coronavirus by limiting your exposure to other people, but it can also reduce operational errors. You also won't have to worry about missing files, documents, or signatures and then returning to the closing office to correct.
Customer Case Studies
A family applied with Premia Relocation Mortgage on January 16, 2020, as they were relocating from France to South Carolina. The family, including children ages 6 and 8, were just off a trans-Atlantic flight on February 13, 2020, so they needed an easy closing. They used Premia's DigitalMove™ eClosing, which took 15 minutes, and then they were off to unlock the doors of their new home. The closing went smoothly, the borrowers loved it, and the closing agent had everything completed in 15 minutes.
In another case, Premia Relocation Mortgage was able to help an expectant mother close on her home in New York. While New York surged with cases in April 2020, Premia's team was able to use DigitalMove™ eClosing with an online notary to close her loan. She wasn’t around others or in a closing office; she was able to sign and begin following the state’s stay-at-home order. DigitalMove™ eClosing assisted in keeping people safe physically and mentally during the home buying process.
Relocating to a new area to buy a home was previously a bit of a hassle, but with eClosings becoming popular and more accepted in more states, the process has become a lot simpler. Companies like Premia Relocation Mortgage can help assist you with the remote home buying process.
Sep 10, 2020