What Is A Remote Loan Closing?
A remote closing is just like closing on a home regularly – except many or all aspects of the process are done virtually. During a traditional closing, the buyers, sellers, real estate agents/REALTORs® and attorneys traditionally gather around a table to make necessary payments and review and sign documents. With a remote closing, all parties can complete all or some of the same tasks from the comfort and convenience of their own home or office using a computer.
How Do Remote Closings Work?
When closing remotely, instead of meeting in person, the home buyers and other parties involved may instead meet virtually and go through closing procedures that way.
For a fully online closing, you can expect to meet remotely using a video conferencing app like Skype, Zoom, Google Meet, etc. Any payments that must be processed for closing will likely be done via electronic transfer and mortgage documents will have to be signed electronically.
Not all remote closings are the same, however. Thanks to differing e-closing laws across the country, not every closing can be done entirely online. Depending on your state, the process may look a little different than what we described above. Currently, though, there are three main “models” of online closing that you can expect to see: the hybrid method, remote online notarization (RON) and in-person e-notarization (IPEN).
By using the hybrid method, you can sign everything that doesn’t require a notary electronically before your actual closing date. Once that date arrives, you can meet with a notary or closing agent in person and sign the remainder of your documents, as well as receive the keys to your new place.
While this method isn’t fully remote, it is perfectly legal across the country since you’re still signing the important documents in person. It’s also a little safer in terms of social distancing than traditional closing. Since you can make payments and sign documents before your actual closing date, it also makes the process considerably faster. Most remote closings are still done using the hybrid method.