An electronic mortgage closing (eClosing) is a modern way to finalize home loans by signing documents digitally. While some eClosings still require face-to-face meetings, they offer increased flexibility and efficiency compared to traditional paper closings.

Types of eClosings:

1. Hybrid eClosing

• Most common type
• Some documents signed digitally, others in person
• Requires meeting with a notary

2. In-person Electronic Notarization (IPEN)

• Face-to-face meeting with notary
• All documents are digital
• Signatures done electronically on computer or tablet
• Digital notarization

3. Remote Online Notarization (RON)

• All documents signed electronically
• Notary meeting conducted via video call
• Currently available in 47 states and Washington, D.C.
• Implemented widely during COVID-19 pandemic

Benefits of eClosing:

• Greater convenience for tech-savvy buyers
• Increased flexibility in scheduling
• Reduced paper waste
• Lower shipping and storage costs
• Faster processing times
• Automatic signature verification prevents missing signatures
• Fewer delays due to paperwork errors

Key Documents in eClosing:

Primary documents (typically require wet signatures):

• Promissory note
• Transfer deed
• Deed of trust or mortgage

Secondary documents (usually digital):

• Closing Disclosure
• Escrow disclosure

While eClosing offers numerous advantages, availability and specific procedures may vary by location and lender. The method chosen often depends on state regulations, lender capabilities, and borrower preferences.

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