The average mortgage closing time starting from loan application to funding, ranges from 45 days to 60 days. But the tiniest problem can delay the process. In most cases, the need for additional documentation prolongs the closing process, resulting in terrible borrower experiences. Borrowers expect the closing period within a month, and this is where electronic closing software can automate workflow and speed up the processing time. The multiple benefits have encouraged the extensive implementation of eClose software in the real estate industry.
Highly convenient
Borrowers look out for a simple and faster mortgage closing process. When a mortgage takes a prolonged period to process, there can be widespread adverse impacts. Thanks to electronic closing software for resolving the delay issue. eClosing automates the different mortgage lending procedures and reduces or eliminates manual tasks.
No need for paper-based dealing
The digital closing process of eClosing software might have its loan origination potential or integrates with a LOS (Loan Origination System), thereby digitizing the entire process and ditching paper-based activities. The borrows can digitally notarize documents via RON (Remote Online Notarization) process and ensure faster closing times.
Cost-saving
One of the best features of electronic closing software in mortgage loans is that it saves the lenders money. This is because every step in the mortgage closing process is automated. This includes document requests, sending status updates, closing packages, etc., thereby enabling the borrowers to sign the documents electronically.
Digitization is time-saving
Electronic signatures can alone save a lot of time in the process. Since the automated process demands the presence of only a few members of the staff, labor expenses can be saved. The electronic closing software offers a digital audit, enabling the lenders to monitor the digital documentation without the intervention of any manual labor. Additionally, the automated tracking of mortgage closing disclosure is cost-saving as well.
Better operational efficiency
The manual mortgage closing procedure involves several human activities. Hand-sending documents and verifying details of borrowers manually can often result in mistakes, lengthening the closing process and also hampering the reputation of the lender. The electronic closing software eliminates or reduces human error by completing the closing tasks automatically and assuring an optimal workflow. The manual closing process fails to offer an optimal result to the lenders.
Eliminates operational mistakes
Electronic closing software has been designed to reduce operational mistakes by providing auto support to multiple closing steps. The digital closing process eliminates the need to submit additional documents, especially regarding missed signatures or missing information. Henceforth, there is no delay or interruptions in the entire closing process.
Conclusion
The implementation of electronic closing software in mortgage loans streamlines and automates the closing activities for both lenders and borrowers. Using advanced digital tools shortens the closing time, reduces human errors, and enhances the efficiency of mortgage companies. This is, in return, helping to save money and time and make the closing process faster, error-free, and more accurate. The borrower experience is also satisfactory, and there won’t be any delay in the process due to factors like labor shortages, sudden changes in documentation requirements, missed signatures, and so on.
