Why Digital Closing is an Essential Upgrade to the Mortgage Lending Experience
Customers today expect digital experiences.
With a smartphone and an internet connection, customers can open bank accounts, deposit checks, sign up for auto and home insurance, manage their retirement accounts, and trade stocks. In fact, 97% of millennials and 91% of Gen Xers use mobile banking applications in lieu of completing them in person.
Similarly, the rise of digitally integrated tasks has led to more frequent uses of online closing. Championing ease of use and a number of productive benefits, online closing is already a valuable tool for many mortgage lenders. Whether your firm is using digital closing in a hybrid format, in conjunction with in-person notarization, or even as the sole tool of a completely remote notarization, online closing has brought a new evolution to the traditional closing ceremony.
With online closing also comes other attractive boons that can simplify the lending process for all parties involved. Read on to learn about how it’s changing the game.
Online closing is the key to efficiency
By moving parts of the closing process online, digital closing modernizes the mortgage lending process by creating a customer experience that feels natural, engaging, and familiar in a digital world. Borrowers can find their dream home and apply for a loan online all from the comfort of their own home. They can also sign most closing documents virtually without having to physically go into the office.
Similarly, loan officers benefit from greater levels of efficiency. Instead of spending time attending in-person meetings, a loan officer can replace many of them with online closing sessions from anywhere, at any time. Moving many of these sessions online can also open up more time for other clients — making use of the time saved to boost productivity.
Increase your savings through digital closing
Digital closing can also generate considerable savings for lenders.
Although digital closing is still a relatively new process, it has already shown incredible promise for firms moving forward. When you put together all of the time saved from improved efficiency and automated tasks through a digital closing process, the amount your firm can save can quickly add up.
Executive Vice President of eStrategies Harry Gardner provided an example:
“A non-warehouse lender originating 12,000 mortgages per year with an average loan value of $250,000 can save $155 per loan by transitioning to a hybrid digital closing process, adding up to a whopping $1.8M in savings annually. If the same lender were to move to a full eNote [digital closing] offering, savings could increase to $224 per loan, resulting in more than $2.6M in annual savings.”
Just imagine how your own firm can benefit by implementing a digital closing program.
Let the digital lending platform do the work for you
Furthermore, online closing can strengthen a firm’s mortgage business by creating further operational efficiency and encouraging transparency for the borrower in the closing process.
Digital lending platforms with integrated online closing reduces the need to manually re-key customer data and automates other time consuming processes.
As an added bonus, digital lending platforms can double check each submitted form to ensure everything is signed correctly and verify that you haven’t missed any important steps in your closing workflow. This saves any time that it would have taken to track down missing signatures or misplaced paperwork that could occur in a traditional closing experience.
Digitize your closing process with Roostify
Roostify is building the right solutions to meet lender needs while protecting customer privacy.
Digital mortgages are here to stay. Reach out to learn more about the Roostify platform.