E-Closing

• Historically, closing a loan was a time-consuming and tedious process that required a lender to physically send documents to a title company or attorney's office. You would physically sign the loan documents, and the title company or attorney would physically send the loan documents back to the lender. E-closing simplifies and speeds up this process through the use of electronic documents. You will typically view the e-closing documents online using a self-guided process.
  
  Alternatively, an orchestrated signing with electronic documents uses a closing agent to facilitate the signing process. In most cases, after signing the documents, you will upload the signed documents and deliver them to your lender electronically.
  
  

Benefit of E-Closing

• Since e-closing documents are electronic, in most cases your lender will email them directly to you. This gives you the time and ability to carefully review all of the closing documents. For example, you can go over every detail of the loan contract and compare the information in the loan contract to the estimates provided by your lender. With a traditional mortgage closing, you typically would not have time to review the mortgage loan contract in such detail. For the lender, e-closing documents facilitates streamlined audits. The electronic documents also minimize closing errors through automation.
  
  

MISMO

• The Mortgage Industry Standards Maintenance Organization works toward establishing a standardized nationwide system for mortgage loan closings. Having real estate agents and lenders nationwide use one system will simplify the closing process. In 2011, the current system creates confusion because closing documents can vary substantially from state to state and lender to lender. A standardized system would minimize confusion and make it easier for the borrower to understand loan documents.
  
  

Availability

• Many lenders do not offer e-closings. Real estate is a mature industry, and many individuals working in real estate have been reluctant to accept changes to the industry. Although e-closings have become more common, many in the industry still prefer traditional paper closings.