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 during closing week started to become less of an issue. For IRS income verification used in mortgage lending, electronic signatures are accepted on Form 4506-C, which replaced Form 4506-T.
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.
Digitizing signatures and documents can help streamline parts of the mortgage process.
With the rise of e-signature viability and popularity, comes new business development. Paperless documentation often requires businesses to adopt technology and workflow support to manage the transition.
As businesses move toward digital records, they may need help with data processing, file scanning, and 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 becoming less common. 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!
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you are ready to get pre-approved for a mortgage.
Yes, many mortgage and closing documents can be signed electronically. Borrowers should still confirm with their lender and closing team which documents are eligible for e-signing and which may still require an ink signature, notarization, or an in-person review.
No, not every document is handled the same way. Some forms may be signed electronically, while others may still need traditional signatures or notarization, depending on the lender, title company, and the specific document.
It may be possible in some transactions, but borrowers should not assume every lender or closing agent handles it the same way. The safest approach is to ask your lender which disclosures and closing documents can be reviewed and signed electronically before closing day.
Parts of a house closing can often be completed electronically, which can reduce paperwork and save time. Even so, some parts of the process may still require additional review, notarization, or an in-person step.
Sometimes part of the closing process can be completed in advance or digitally, which may reduce the amount of time needed in person. Whether a full in-person appearance is required depends on the lender, title company, and the documents involved.
E-signing refers to signing documents electronically. E-closing generally means using digital tools for part or most of the closing process. Remote online notarization involves notarizing documents through an approved online process when available. Borrowers should ask their lender or title company which options apply to their transaction.
Electronic signatures are commonly used for some disclosures, authorizations, and verification forms during the mortgage process. For example, IRS income verification for mortgage lending can use Form 4506-C with accepted electronic signatures, but borrowers should confirm current requirements with their lender.
Ask which documents can be signed electronically, which ones still need ink signatures or notarization, when you will receive the closing package, what identification and payment method to bring, and who to contact if you have trouble accessing or signing the documents.
Confirm how the signing appointment will work, whether any part of the closing can be completed ahead of time, what items you need to bring, and whether any remaining steps must be completed in person.
Not always. Electronic signatures can streamline parts of the mortgage process and reduce paperwork, but borrowers should expect that some documents or final steps may still require traditional handling.
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