How Electronic Closings Work
Electronic closings, also known as eClosings, not only save money on paper and mailings, but they can also be signed by all parties, notarized, and sent/stored securely regardless of location. With a secure online portal, your mortgage closing is safer than ever.
Most states accept eSignatures, eNotarizations, and eClosings under the Uniform Electronic Transactions Act (UETA).
Acceptable eSignatures include:
- Typing your name into the signature space
- Uploading a snapshot of your signature to the document
- Using a stylus or finger to write your signature
However, an eClosing may involve additional means of confirming the borrower’s identity and signature such as a video conference or in-person appearance. According to QuickenLoans.com, some states require notaries to obtain a digital certificate before conducting an online notarization.
There are three types of eClosings:
- Hybrid eClosings require an in-person meeting between the notary and borrower for “wet ink” signatures.
- In-Person Electronic Notarization (IPEN) are also face-to-face, but all documents are signed electronically.
Remote Online Notarization (RON) allows all parties to meet virtually, eSign and eNotarize.
