If the last few years have taught us anything, it’s that there is an online platform out there for any need, and buying a home is no exception. More and more banks like Chase and Wells Fargo are joining the already active online lending community.
So what exactly is a digital mortgage?
Like any changing model, eClosings can be done via several hybrid methods, but a fully digital mortgage is exactly that: applying for, getting approved, and completing paperwork for a paperless mortgage done 100% online. Even old money is coming around as the benefits of a digital mortgage far outweigh the potential risks; And once researched, most concerns are easily assuaged.
Digital mortgages remove the added costs of locating and sourcing closing agents/ They make the job of a loan officer easier and more organized; Reducing the amount of people involved in each transaction reduces the potential for errors. As does recording the session itself and storing it for ten years.
Digital Mortgages increase efficiency as you are able to cut travel costs. You are still able to host face-to-face meetings, but now, it can be done from everywhere. This reduces labor costs and saves time for everyone involved. Removing intermediary travel and time spent checking over documents. A full eClosing holds the same requirements as any other mortgage and more. That means security and privacy are both paramount at each step. Especially if the company doing the closing is MISMO approved.
It also saves time for the eNotary (previously pronounced just “notary” 😉) as digital technology makes it easier to check, store, and retrieve their notarizations and documents at any time. Depending on the structure of the mortgage company, they also have the option to outsource some of their Notary work by connecting with online notary networks. This digital mortgage feature can completely change the way a mortgage company might operate.
The Jist of “Digital Mortgage”
To put it into some numbers, Incorporating other eMortgage entities into a fully digital mortgage enables both buyers and lenders to be able to save 2 weeks and around $450 during closing! That’s a lot of money and even more time. eNotaries are often a small fraction of what a UPS or mobile notary will charge. Any subscription fee is nominal compared to the costs of a traditional closing, and can be covered in just one closing.
Future Projections from the American Bankers Association project the total value of loans will reach the heights of a whopping $200 billion by the year 2025 as eNotes and eClosing become more ubiquitous to match the needs of customers. The younger generations are already operating strictly on a digital plane, and their parents and older generations have been slowly but surely coming around to the need of speed, efficiency, and convenience to compete.
Digital mortgages are here to stay and that is a good thing for anyone who wants to work with lenders directly, close faster, and spend less overall.