Thanks to advancements in technology, a couple in Illinois can work with a notary in Virginia to close on a home from a lender in Michigan.
Via Realtor.com, the Wall Street Journal reports that lenders are starting to use remote mortgage closing programs, where borrowers can finalize mortgages from home, without the need to meet at a central location or sign a physical document.
While electronic mortgages, or e-notes, are beneficial for borrowers, lenders also get a boost.
“By having things digitized, a loan would be able to get to the secondary market much more quickly,” says Samuel E. Oliver III of Freddie Mac. He says in the future, mortgages could be delivered to an investor in as little as one day—a process that takes a median of 29 days now.
Five states offer remote notarization: Virginia, Texas, Nevada, Ohio, and Montana.