Closing Remotely - Buying from a Distance
Feb 19,2021 — By
When selling, it’s normal not to be present in the final stages of the transaction. As long as the paperwork is pre-signed and the buyer has the bank account details, everything can still go ahead as normal. On the other hand, much more is demanded of the buyer. When closing, people are often forced into taking time off work, heading to the offices of the chosen agent, and signing the paperwork in person.
Fortunately, the industry has gone through a process of modernization in recent times and this has led to remote closing. As the name suggests, this means the buyer can close from wherever they are in the world. No more skipping work, no more arranging babysitters, and no more hassle.
According to experts, remote purchase closings are becoming just as popular as remote refinance transactions. For the longest time, the option of remote closing was reserved for those in certain locations. Today, they tend to be available to us all.
How Does It Work?
As soon as the closing is scheduled, the buyer can choose where they want to close. As long as the attorney or realtor tells the title company in plenty of time, there’s no extra charge (there may be a charge for refinance transactions). Although most important as you get closer to the closing date, the borrower actually has an opportunity to request out-of-office closing at any stage in the mortgage journey.
Better Terms and Rates?
Not only is remote closing convenient for buyers, it has also led to new competition for lenders (in turn, this helps buyers). Rather than choosing a mortgage lender based on their location, buyers can compare the market and go for better rates even if their nearest office is some distance away.
Unfortunately, the downside of remote closing is the potential for mistakes and hiccups. If you don’t understand the terminology and what’s being asked of you, you don’t have the assistance you otherwise would in an office with the professionals themselves.
For those who will need assistance, or just want to ask a question or two at the signing, it might be better to attend in person. Elsewhere, we should also mention the risk of communication problems with remote closing. With all the moving parts and all the parties involved, the process can become somewhat disjointed.
Remote Closing - Good or Bad?
All things considered, those buying in a different state will almost certainly benefit from remote closing. If you can’t make the office at the arranged date and time, it’s a useful tool. Remember, you’ll need a mobile notary so communicate with your realtor, lender, or even the title company; they will normally provide strong recommendations.
Whether you need to look after your children, can’t get away from work, or are even away for business, remote closing is a brilliant feature for buyers. As long as you understand the potential drawbacks, you can close in a different state and take the first step of your future remotely!