The average time to close a mortgage – from loan application to funding – is 45-60 days, but even the smallest of problems can lengthen the process. Labor shortages, a sudden influx of new applications, a request for a borrower to provide additional documentation can prolong closing by weeks, resulting in poor borrower experiences. Sixty percent of borrowers expect to close within 15-30 days, according to SimpleNexus data.
Electronic closing software (or eClose software) can speed up processing times, automate workflows, and free up labor and resources for mortgage companies. Let’s take a closer look at these benefits and how a solution like Nexus Closing™ can transform e-closings for lenders.
Borrowers want a quick, simple mortgage closing process. If a mortgage takes too long to originate, it can have widespread impacts.
Electronic closing software solves this issue by automating various mortgage lending processes and reducing manual tasks. SimpleNexus data reveals that 60 percent of borrowers prefer a completely digital closing process. eClose software might integrate with a loan origination system (LOS) or have native origination capabilities that digitize mortgage lending from application to funding. No longer will lenders have to contend with paper-based processes or use a combination of systems to close mortgage loans.
Nexus Closing is eClosing software from SimpleNexus, an nCino Company, that provides borrowers with a streamlined login process and automatic task notifications, to enhance the closing experience. Borrowers don’t need to create additional sign-on credentials to give lenders financial information and required documents. They can confidently navigate the closing process by receiving timely application updates.
Other features that shorten the closing process include mobile e-sign, allowing borrowers to add electronic signatures to digital documents from their mobile devices. Borrower can even notarize documents from the comfort of their homes by connecting with a notary via a video calling ceremony instead of signing in person. Nexus Closing’s remote online notarization (RON) scheduling feature facilitates this process and ensures borrowers and notaries sign documents as quickly as possible, reducing closing times.
Eclose software can save lenders money by automating almost every process in the closing pipeline. That includes issuing closing packages and document requests, sending status updates, and allowing borrowers to e-sign documents – this alone can reduce closings by days. These automated processes require fewer team members, allowing lenders to save money on labor costs. Lenders can also allocate labor resources to tasks other than closing, such as marketing products and services, and generate additional revenue for their organizations.
Nexus Closing can save lenders money by completing tasks executed by paid team members. These tasks including issuing closing packages and documents to borrowers securely. The software provides a digital audit trail, allowing mortgage lenders to see when borrowers receive and return digital documentation without human intervention.
Another feature of Nexus Closing is the ability to automatically track the mortgage closing disclosure process in a LOS without any paid staff getting involved in the process. Team members no longer have to document disclosure timelines or monitor signature points.
Enhance Operational Efficiencies
Manual closing processes involve several team members who hand-send documents, verify borrowers’ details, and complete other manual tasks. Unfortunately, these team members might make mistakes, which can lengthen the closing process and jeopardize the lender’s reputation. eClose software reduces or eliminates human error by automatically completing closing tasks and ensuring workflows run smoothly. Manual processes won’t offer lenders the same results.
Nexus Closing can reduce operational errors by automatically providing support for multiple closing scenarios. For example, mortgage companies can avoid situations where a team member might send requests for additional documentation needed or the borrower missed a signature.
SimpleNexus can also improve collaboration between mortgage companies and settlement and title agents. The SimpleNexus Closing Portal supports traditional, hybrid, and full eMortgage closings that connect everyone involved in the final stages of the homebuying process.
Your eClose Advantage with SimpleNexus
eClosing software automates and streamlines closing tasks for lenders. These digital tools shorten closing times, save mortgage companies money, and reduce human error. to learn more about the flexible closing options for your preferred workflow, request a demo today.