Mortgage closing processes can be quite lengthy, taking days (sometimes weeks) to reach completion. This prompts lenders to seek modern solutions to optimize the process and close more loans in a shorter period. An obvious solution here is eClosing software.
What is eClosing software?
In simple terms, eClosing software is a platform that is used to digitize the mortgage closing process. Documents can be edited, signed, and shared in real time, reducing the amount of time that it would take to close a loan by about half or more.
Nexus Closing™ is one of the leading eClosing software that makes closing ceremonies easy while offering lots of other benefits to improve mortgage businesses.
Hybrid vs full eClosings
When using eClosing software, you will likely come across the terms “full eClosing” and “hybrid eClosing”. So what are they are how are they related to eClosing software? Well, they are simply types of digitized mortgage loan closing processes.
- Full eClosing
In this type of mortgage closing, you can use an eClosing platform to execute the entire closing online. This process will typically include eSigning, eRecording, online notarization, and eNote.
- Hybrid eClosing
A hybrid eClosing is “halfway” digitized so that the closing happens partially online. Some of the tasks that can be completed online include document signing.
How are eClosing solutions changing closing processes?
Platforms for eClosing have been transforming closing processes by:
1. Ensuring easier document collection
eClosing software tools make it easier for all the involved parties to see the documentation that has been completed and collected already, and the documents that are still needed before full closing.
2. Saving time
Mortgage closing processes are usually highly orchestrated, often requiring days to weeks before reaching the final step of closing. Thankfully, eClosing software solutions save a lot of time by supporting the following elements:
- Online notarization:
eClosing platforms allow remote notarization of documents in the states that allow it. The borrowers simply have to upload their loan documents, get verified, and then a remote notary will notarize the documents for them.
- eSigning:
This element is all about signing documents electronically. It can also be referred to as “Dry signing”.
- eNote signing:
You can use eClosing platforms to sign eNotes and store them electronically.
eVault: This element is responsible for the storage and sharing of mortgage documents in a secure and compliant manner.
3. Reducing error rates
Since eClosing platforms have the documents and all the other required bits of information in one place, the title agents and lenders can always review and correct any mistakes before the closing. What is more, eSigning reduces the probability of encountering missed signatures, thus prompting a rework.
4. Facilitating better communication and collaboration
The technology that comes with eClosing platforms makes it easier for title companies, lenders, borrowers, and real estate agents to communicate within the platform. This goes a long way to streamline the closing process and ensures that everyone is on the same page. No need for follow-up emails or calls, which not only saves time but is also convenient.
What’s more, these platforms also promote collaboration among the involved parties, further increasing accuracy and expediting the closing process.
Closing thought
eClosing platforms are streamlining mortgage closing processes, and it’s a good time to add such a solution to your business. Nexus Closing™ is an eClosing software tool that will optimize mortgage closings and enhance the experience for all parties involved.
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