Credit unions, banks, and mortgage agents listen up! It's time to meet the rising need amongst your borrowers for instant gratification i.e fast-tracked processing of mortgage closing documents. Fully digitalizing the closing process is the only way to manage such customer expectations, especially in a remote-first COVID world.
In this article, we will help you understand how to get the paperwork sorted in the final step of the home loan process with eSignature solutions (sign-up for a 14-day Signeasy trial). Once the documentation is out of the way, funds can be collected and disbursed on time — so that you don't need to worry about losing out on a client.
Top challenges with traditional mortgage closing
All sorts of loans, including mortgages, are harder to disburse than ever before. And as borrowers become more demanding and tech-savvy, there is a need to transform the mortgage closing experience. Here are some of the challenges that you, as lenders, might face:
- Delays prevent mortgage closing on time: Time is of the essence when it comes to the sensitive and laborious process of mortgage closing. Something as basic as getting contracts signed on time can mean all the difference between a successful and a bust deal. Even if one party makes a mistake or delays the signing, it results in a poor customer experience causing the mortgage closing to slip through your fingers. To avoid losing a customer to delays, it's important to focus on faster time to money.
- Productivity loss for lenders: Your agents spend too much time on admin work such as following up with clients for signatures, scanning and printing out mortgage closing paperwork, and so on. This leaves them very little time to focus on more creative and strategic ways of improving loan closing rates.
- Customers feel hurried into making decisions: Most mortgage closings happen at an attorney or title company’s office, where the borrower is likely to see the agreement for the first time. Hence, the home buyer does not get enough time to review the mortgage closing documents and be better informed about risks before signing on the dotted line.
- Trouble remotely processing documents: In the age of social-distancing, customers and mortgage agents find it difficult to remotely exchange and sign the many mortgage closing documents.
To stay relevant and competitive, it's time for mortgage companies to think disruptively! By choosing a powerful eSignature solution, you can empower your agents to offer a superlative mortgage closing experience.
Benefits of Signeasy for eClosing mortgages
Sure, the industry has been closing mortgage documents in a certain way for many years. But, since it isn’t efficient enough, you need to digitally transform the workflow. At the very least, to increase productivity and success of mortgage closing, lenders need to adopt a secure eSignature solution such as Signeasy.
Here are some of the features of Signeasy that make it a favorite amongst small and medium banks and other lending institutes:
- Secure signing - SSL encryption, passcode, and fingerprint authentication
- Legally binding - ESIGN and eIDAS compliant
- Ease of use - Comes with status tracking, the ability to store commonly used mortgage templates, and signing reminders that make your closing workflow efficient
- On-cloud storage - Integrates with cloud solutions to automatically archive documents
- Secure approvals on many documents and clients at the same time
- Remote-friendly - Mobile-first app lets home buyers sign the documents from anywhere and at any time
For greater efficiency, we would recommend that you integrate Signeasy with your business or productivity apps. In this way, your staff and customers can even sign without disturbing the flow of work.
If suddenly migrating all your mortgage-related paperwork to Signeasy seems too drastic, you could start by just capturing eSignature for ancillary documents. Once this is successfully executed for a few months, you can start getting recordable docs shared and signed with eSignatures.
Bonus: Checklist of mortgage closing documents
Here is a list of contractually and federally (and some good to have) required reports to have handy when closing mortgages:
- Good faith estimate
- Termite inspection report
- Loan estimate
- Closing disclosure
- Notice of the right to rescind
- Initial escrow statement
- Promissory note
- Mortgage document (deed of trust)
- State and local government-mandated documents