Ready to close on your dream home? Hold up, there’s a new sheriff in town: eClosings (and multiple eClosing types!). They’re faster, cheaper, and way more convenient than those old-school closings.

There’s not just one type of eClosing; nope, you’ve got options. We’re talking several eClosing types: hybrid closings, in-person electronic notarization (IPEN), and the holy grail of eClosings: remote online notarization (RON).

Each one’s got its own perks and quirks. So, which one’s right for you?

What Is an eClosing?

An eClosing is a mortgage closing where some or all of the key elements of the transaction occur online, rather than on paper. eClosings use technology across one or more of the following closing activities:

• eSigning: Closing documents are all online and signed electronically.
• Online notarization: Signatures and documents are notarized using approved remote online notarization methods.
• eNote: An original electronic promissory note (eNote) signed on an eClosing platform and registered with the MERS eRegistry® upon execution.

Types of eClosings

Three types of eClosings currently exist to accommodate the needs of all parties: Hybrid Closing, Electronic Closing and Remote Online Closing. The most common type of eClosing, a hybrid eClosing involves a combination of electronic and “wet-ink” signatures. It requires an in-person meeting between the borrowers and the notary public.

In-Person Electronic Notarization (IPEN) also requires a face-to-face meeting, although all closing documents are signed electronically with a tablet or computer. The most convenient eClosing process, Remote Online Notarization (RON), allows all parties to meet virtually via web video conference. All documents are eSigned and eNotarized.

An eNote is an original electronic promissory note signed on an eClosing platform and registered with the MERS eRegistry® upon execution. An eClosing is the act of closing a mortgage loan electronically. This occurs through a secure digital environment where some or all of the closing documents are executed and accessed electronically.

This is often a hybrid process in which certain key documents, such as the promissory note and security instrument, may be printed to paper and wet-signed, while other documents are signed electronically.

Benefits of an eClosing

Electronic mortgage closings – more commonly known as eClosings – are meant to streamline the closing process and cut out additional fees such as those for copying and shipping. Typically performed using electronic tablets, eClosings reduce paper documents with electronic documents while saving a tree or two in the process.

The eClosing Process

Preparing for an eClosing

For a remote signing process, borrowers may use software. Video conferencing programs can also be used to communicate with the other parties involved in the transaction and confirm the borrower’s identity and background. The same documents are signed in an eClosing as in a traditional closing, whether by hand or electronically.

The biggest difference lies in the type of eClosing available and whether it’s hybrid, IPEN or RON. A hybrid eClosing still requires some face-to-face time with mortgage lenders so you can provide a wet signature on some of the more important documents, which include:

• The property deed
• The mortgage deed, or the deed of trust.
• The promissory note

Documents such as the Closing Disclosure and escrow disclosure are usually available to sign electronically. An eNote – or electronic promissory note – may also be available for you to digitally sign.

Advantages of eClosings

Electronic mortgage closings – more commonly known as eClosings – are meant to streamline the real estate transaction closing process and cut out additional fees such as those for copying and shipping. Typically performed using electronic tablets, eClosings reduce paper documents with electronic documents while saving a tree or two in the process. Ways an eClosing can benefit borrowers and lenders include:

• Allowing for more flexible scheduling to conduct the closing process.
• Cutting down on time and money spent on closing paperwork.
• Detecting missed signatures and other mistakes immediately.

eClosing Best Practices

Preparing Borrowers

If that all sounds appealing, let’s continue on to explore the ins and outs of eClosings when buying a home. It’s important to note that even a single electronic signature categorizes the whole process as an eClosing.

In the case of a RON closing process, the borrower is walked through the documents by the notary over video. The notary will also remotely perform other notarial acts – such as confirming the borrower’s identity and other personal information – during this meeting.

Frequently Asked Questions in Relation to Eclosing Types

How does eClosing work?

eClosing lets you sign mortgage docs online. You need a stable internet connection and digital tools to do it.

Can you close on a house virtually in Michigan?

Yes, Michigan allows virtual house closings with remote online notarization (RON), making the process fully digital.

How do virtual closings work?

In a virtual closing, all parties meet online. They use video calls to review and electronically sign documents.

Can closing documents be signed electronically?

Absolutely. Most closing documents can now be signed digitally, streamlining the entire home buying or refinancing process.

Conclusion

So, there you have it – the three eClosing types. Hybrid closings give you the best of both worlds, IPEN brings the digital magic to your in-person closing, and RON lets you close from anywhere with reliable internet access.

No more paper cuts, no more endless signing sessions on closing day. eClosings are here to make your life easier. Whether you’re a tech-savvy millennial or a baby boomer who’s seen it all, there’s an eClosing type that’ll work for you.

The future of real estate closings is digital, and it’s time to embrace it. Say goodbye to the stone age and hello to real estate eClosings. Trust me, your hand will thank you.