If you have ever closed on a property, you are very aware of the enormity of time and patience required from the moment you decide to buy a home, until you sign on the dotted line. Before January 2013, buying your new dream home meant several days of behind the scenes processing such as – title search, appraisal, credit reports, home inspection, etc. Once everything was cleared and the date for the closing was set, you had to take time out of your busy schedule, and often travel to an inconvenient location to sign the final documents with previously acquired cashier’s check in hand.
If you happened to be so fortunate to have an organized realtor, most of the tedious legal hassles would already be taken care of by the day of the signing. Unfortunately, even in the best case scenario, you most likely were overwhelmed at the sight of the mountain of paperwork eagerly awaiting your John Hancock, not to mention your complete focus and comprehension.
In the first few weeks of January 2013, writer’s cramp woes on closing day started to become a thing of the past. Today, electronic signatures are finally being accepted by the IRS and financial institutions for mortgage lending forms, including the final hold-out – the 4506-T forms which are necessary for income verification of applicants. No doubt, you will still have to sign some paperwork, but much less in comparison to home closings or mortgage dealings of the past.
Homebuyers are not the only ones who benefit from e-signature technology. Because of the recession, banks are also looking to save time and money in processing loans. According to American Banker, digitizing signatures has allowed banks to reduce one to two days of time off the normal mortgage lending process. In addition, fines and fees are reduced and the whole lending process is expedited more efficiently and cost effectively. So, in the final analysis, the cost and time savings may be passed on to you, the consumer.
With the rise of e-signature viability and popularity, comes new business development. Because of the movement toward paperless documentation, every day new service type businesses are being created to meet the demands of technology implementation. As paper grows obsolete, businesses are outsourcing their data processing and file scanning needs in order to make the change to total electronic filing systems. Pay attention next time you go to your dentist or physician. The file system that used to fill the shelves directly behind the receptionist is slowly disappearing. Hopefully, this will translate into savings when you pay the bill.
Paperless is not only the way of the future for Washington & Oregon mortgage lenders and within the medical field and data storage industries, but this new time saving technology has finally breached the walls of the White House as well. Soon after welcoming in the New Year, President Barack Obama ushered in the new “e-trend” when he electronically signed the fiscal cliff bill while vacationing in his home state of Hawaii. Imagine, following in the President’s lead, you may very well sign your e-signature on your next home while sipping a Margarita poolside in Cancun, which translates into e-lation!