By Jerry Koors, President, Merchants Mortgage
Some of your homeowner friends might tell you that you will sign your life away when you show up for your mortgage closing appointment. Getting a home mortgage requires you to jump through a lot of hoops, such as making a trip to the closing company and signing a plethora of documents as one of the final steps before you can get your keys and move in.
Especially during this period of social distancing due to COVID-19, digital ways to close on a mortgage are more relevant than ever, as they allow you to secure a mortgage with ease all while limiting contact and exposure to individuals and surfaces.
During any period, securing a mortgage requires a laundry list of paperwork that is simply a waste of time and trees. Buying a home should be an exciting adventure and major life milestone, but the joy of the moment can be bogged down by the sheer volume of documents, contracts, and other paperwork that require your approval and signature. Some experts have estimated that you could be faced with up to 100 pages when you sit down at the settlement table on closing day.
Fortunately, there is a way to avoid this home-buying hassle. Many Hoosiers are turning to solutions that provide an all-encompassing type of closing. Electronic closings, known as e-closings, create an all-electronic process that allows for a fully automated signing and closing of digital loans with one powerful, single platform that many major banking institutions have adopted. In addition to purchases, mortgage refinance can also be completed through an e-closing.
When you are ready to make that big step, consider the following benefits of e-closings.
Save time. It is hard to dread closing day when you choose to go with an e-closing option, where all documents are signed quickly and easily on an iPad. For a typical closing, some suggest that homebuyers take the entire day off of work to avoid worrying about the clock ticking. However, choosing the e-closing option will allow you to get back to your job and life faster. The best part is that the e-closing process only takes about 10 minutes, even counting the fact that most institutions still require a trip to the title company.
After weeks of waiting, you may be tempted to breeze through all the confusing legal jargon and sign off on the paperwork just to be done. However, we recommend that you take your time, as this major purchase should not be a race to the finish.
Read each page thoroughly, in advance, and don’t be afraid to ask questions about the closing process to your lender or real estate agent. An e-closing allows you to meticulously review the closing documents from the comfort of your office or home – and at your leisure – days before a closing, not day-of in front of a title agent, or in the case of a purchase transaction, in front of the realtors or sellers.
Save paper. The United States produces about 20,700,000 tons of this paper each year, which is estimated to take 55 to 110 million trees from our planet. We only recycle about 11,000,000 tons, or 53%, of that paper, according to the American Forest and Paper Association. Choosing a paperless alternative whenever possible is one of the best ways to reduce paper use for the benefit of our environment.
Save headaches. There are a lot of moving parts and multiple people, such as real estate agents, lenders, sellers and inspectors, involved throughout the homebuying or mortgage refinancing process. Remember that buying a house should be an exciting and enjoyable experience, and take steps to save yourself a few headaches throughout the process, including opting for an e-closing on your mortgage.
Interested in learning more about what an e-closing can do for you? Merchants Bank of Indiana specializes in entirely electronic closings. Contact one of Merchants Bank of Indiana’s Loan Specialists for more information at 317-805-4336 or toll free at 877-779-0112.