Product Manager at Relevant Software

What Is Mortgage eClosing: eClosing Software Explained!

August 5, 2021
Updated: September 16, 2021

The moment you hear, mortgage eClosing, what comes to your mind? Most people picture relaxing at home, on the couch, watching their favorite show, and at the same time buying a home. Voila!

But is that true? Not to ruin the excitement but eClosing does still require a few in-person meetings. But take heart, the process is still way faster than traditional mortgage closing. In other words, yes, it’s certainly worth it.

While you will still have to do a bit of pen and paperwork to finalize things, the greater chunk of it doesn’t need you to be physically present. Electronic mortgage closings streamline the closing process and reduce copying and shipping fees. This can also save a tree or two. You will also find that with current movement restrictions, eClosing also presents itself as the safer option. 

At Relevant, we can help you to build mortgage eClosing software. Also, we can offer fintech software development services for your mortgage business. Our relevant experience allows us to assist businesses with the perfect products for their needs in a cost-effective manner. In the past, we have developed platforms like FirstHomeCoach, a cloud-based solution that helps buyers purchase homes in the UK. FirstHomeCoach processes and analyses data to streamline the individual property buying process. 

What is e-closing?

Generally, eClosing is where one or more mortgage closing documents are signed electronically. Below are the different types of eclosing you should know:

Remote online notarization

You can do remote online notarization over video. All of the documents involved are signed digitally. This digital experience mirrors the original in-person notarial act. You should note, however, that there are some states where RON is not allowed.

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In-person e-notarization

Also called IPEN, the process involves meeting a notary physically, but all the required documents are signed electronically.

Hybrid e-closing

Like IPEN, you meet the notary in person, but some documents are signed electronically. Some of the documents you will have to sign physically with a pen. 

Nowadays, hybrid eClosings are the most popular option. According to the data firm Closing Corp, in August 2020, about 89% of homebuyers and 84% of refinancers complete their home buying processes via eClosing. 

According to the data firm Closing Corp, in August 2020, about 89% of homebuyers and 84% of refinancers complete their home buying processes via eClosing.

Mortgage loans can also be closed electronically. You do this via a highly secure digital platform where some or all of the required closing documents are sent and processed electronically. This process is known as eMortgage or mortgage e-closing.

Electronic mortgage closing involves the use of E-signatures as compared to wet-ink signatures. 

This practice is becoming quite common in the mortgage lenders’ guild. 

Benefits of e-Closing and e-Mortgage

  • Saves time and money by reducing the length of the closing process
  • There is more flexibility for borrowers that are always busy
  • There is a lower risk for operational errors
  • Before closing, borrowers can go over their documents and get adequate times to go over the fine print. 
  • There is no need to use paper, no shipping fees, and no storage costs
  • Data quality is improved
  • The signing process is faster and easier 
  • The loan’s life cycle becomes shorter, from the time one applies to the time they receive the money.

Please note: To manage transactions effectively, you and your clients can use the help Relevant financial app development services.

advantages of e-closing

How does e-Closing work?

The main difference between eClosing and traditional closing is how documents are signed. Traditionally, you had to leave a ‘wet ink’ signature on each of the required documents. Now, with eClosing, you only need to leave an electronic signature. This is a signature that you use on digital copies on a tablet or a computer.

Electronic signatures can be made by typing your name, adding a snapshot of your signature, or using your fingers to trace the signature on a pad. Whether this is done remotely or in person, you will need to confirm your identity. Therefore, you can be asked to produce your driver’s license or government-issued ID. 

If you are doing the meeting via video, the notary can ask you to hold your ID facing the camera. They might also ask you some questions that only you can answer.

How does e-Closing with Remote Online Notarization (RON) Work?

Basically, with Remote Online Notarization, you will receive a closing date and the closing documents electronically. You can then review them and ensure that everything is ok before you meet with the notary. 

The second step would be to verify your identity. The best way to do this is by looking at your government-issued ID. You may also be asked a few questions. 

After the identity verification, you can then go ahead and connect with the notary using live video. It is at this step when you will get to sign the required documents. The agent will also confirm your identity and guide you through any other necessary processes.

how does remote online notarization work

After the closing appointment, you can view and share your signed documents. You can also pay or receive funds through online banking. Usually, the entire process is relatively fast and easy. 

Can I use Remote Online Notarization (RON) for my closing?

For a long time, RON was only available in states where the authorities had passed the RON bill. Recently, because of the movement restrictions, most people are not comfortable having in-person meetings with notaries.

This has led to an increased reliance on RON. Some state governors have issued executive orders permitting the use of RON in states where the RON bill has not yet been passed. This means that for a lot of people, RON is now an applicable option when buying a home.

What mortgage lenders get out of e-closings

As a lender, there are several benefits that you get from eClosing. The first benefit is traceability. The sent documents can be tracked to ensure that they are delivered, and the recipient can also confirm that they received them. Additionally, there is no paper; hence, there are no shipping and storage costs. 

Another benefit is that it is impossible to submit electronic documents without signing them. With paper, it is not always the case that a missing signature is detected instantly. This may cause a lot of headaches and delays in the closing process. 

To have everything at the swipe of a finger, most lenders are building digital mortgage software. Becoming fully digitized is helping the mortgage business to thrive in the modern digital economic environment.

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Why your business needs custom e-Closing software

Building a custom eClosing software may be the best move as it helps with the following:

  • To get e-closing software that meets all your specific needs

You need to consider that while eClosing is becoming quite popular, there are still many instances where you will still have to place physical signatures. As a result, whichever solution you choose has to consider all variations of the closing process. It would help to build a custom e-closing software that fits perfectly with all your processes and business needs.

  • To reconcile online and in-person activities

Sometimes a borrower can fail to access documents within the required period. As much as you might want the closing to go down the digital path, you will eventually need to adopt a strategy that supports wet-signing. If you have a personal eClosing platform, it won’t be challenging to reconcile what would have been done online with what you would need the client to do in person. 

Why your business needs custom e-Closing software

For a lender to operate efficiently, their Custom eClosing software for mortgage and lending should be able to handle all forms of closing. If a borrower needs to wet-sign, go via the hybrid route, or go fully digital, that should be possible. It, therefore, means that whatever solution the lender uses has to put their preferences and business rules in front. It also has to function in line with jurisdictional requirements. With such a solution, it will be easy for the lender to determine the best way to handle loan applications. 

  • To have all vital work processes at one place

Closing involves a lot of systems, participants, and communication methods. There are also various automated and manual tasks that need to be carried out. This can present a challenge to lenders. It is difficult to maintain a consistent and straightforward process because of the various processes and people involved. 

That is why a custom eClosing platform would be highly beneficial. You can tailor it in such a way that all communication and every other process is done on the same platform. Such a technology would also standardize and automate back-end tasks at a moment’s notice. When you are ready, hire an e-closing software development company and have them build you your own custom solution. 

At Relevant software, we provide businesses with highly efficient and Dedicated software development teams that deliver cutting-edge solutions. You can get a custom eClosing software that suits your preferred workflow. Remember, if the solution is your own, you can constantly tweak it whenever you want change. That is opposed to a solution you use on a subscription basis. The vendor can’t change how their platform works to suit your needs. 


Real estate closing software is going to be the standard of the mortgage industry in the future. They present lenders with an effective way to reduce costs, boost efficiency and easily streamline their work processes. They also significantly improve client experience, especially if the lender is using a custom eclosing platform. Everything will be done in one place. This includes submission, communication, and finalizing everything. Lenders must act fast and get their own custom eClosing solutions which will allow them to maximize the benefits of this technology. 

If you are not yet utilizing eClosing, or you have another solution that you are using that’s not making life as easy as you want, it might be time to upgrade. Find a company that offers high-quality fintech app security solutions and digital mortgage software, and set yourself up with a modern and effective eClosing software solution. There are several Ukraine outsourcing companies that you can consult for such services without breaking the bank.

Written by
Product Manager at Relevant Software
For more than 6 years, I've been working as Business Analyst and Product Manager at Relevant. I'm responsible for requirements engineering and management and solution implementation control.

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