Most Americans Trust Digital Financial Transactions, Survey Finds: Here’s How Mortgage Closings Could Change
Amid the growing popularity of online mortgage fencing, a new survey found that a majority of American adults (81%) say they feel secure when doing their financial transactions online.
The survey, conducted by remote online notarization company (RON) Notarize, also found that 59% of those surveyed said the traditional notarization process “has not kept up with the times.”
RON allows those who need a notary to perform legalization online in front of a webcam, rather than in person. The process has become increasingly popular for mortgage transactions, allowing for remote closings and a full mortgage eClosing experience.
“Even the most traditional in-person transactions have rapidly evolved online and as a result, consumers are rethinking every facet of how they digitally conduct sensitive financial transactions,” Notarize Founder and CEO Pat Kinsel said in a statement. “The data confirms what Notarize knows to be true – people trust digital transactions, but still want security throughout the process and are willing to take the extra steps to give them peace of mind that their transactions are verified. and safe. ”
As digital closings become more and more popular, it’s important to compare lenders so that you can choose the one that best meets your personal financial needs. If you want to take out a mortgage or are looking to refinance digitally, visit an online marketplace like Credible to compare several lenders and options at once.
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Americans value security measures for online transactions
RON supporters often point out that It’s safe, possibly even more than in-person closings due to its additional security measures to meet compliance regulations. Specifically, the transaction is videotaped and stored, it scans for credentials and performs an instant security background check and asks security questions.
Americans are also wary of the increase in scams, which increased during COVID-19 pandemic. Notarize’s survey shows that 51% of those who have conducted financial transactions online feel more secure when two-factor authentication is present, and 48% feel more secure when they have to answer questions of security.
If the idea of taking out mortgage refinancing without leaving your home sounds appealing to you, visit Credible to compare lenders and get prequalified in minutes without affecting your credit score.
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The rise of digital mortgages and how to get one
Currently, 35 states have permanent RON laws in place for mortgage eClosings, and temporary measures have been adopted in others to allow real estate transactions to continue during economic shutdowns. These new measures ushered in an unprecedented era of digital mortgage growth and led many lenders to come up with more digital processes during the coronavirus pandemic.
But since not all lenders or states offer this scanning option, it’s important for homeowners and homebuyers to question their lender before starting a mortgage refinance. Here are tips for homeowners to make sure their lender can take out loans digitally:
1. Compare several lenders: Different lenders will have various mortgage financing options available to homeowners, including different interest rates or digital offers. Lower rates could save a borrower on their monthly payments, and more digital opportunities could create a smoother customer experience. Visit Credible to compare multiple mortgage lenders at once and find out which one is best for you.
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2. Ask questions before choosing a lender: Before choosing a lender, research them thoroughly or talk to one of their loan officers. Ask yourself what does eClosing mean to them? Does digital mortgage mean they start the mortgage process online, or will it be fully digital until the end?
Some lenders say they have digital fences, but still require borrowers to physically go to the title company to close the mortgage on an iPad. If remote closing is important to you, ask up front if the lender offers RON in their digital mortgage process. Also, remember to be specific in your questions.
For example, does the word ‘digital’ for your lender mean that you can upload your bank statements digitally to their platform, or is their software advanced enough to connect to your bank account and extract your financial information? for you ?
3. Be persistent: Just because you might have already chosen a lender doesn’t mean you should stop asking questions or making requests. If a lender or the securities company you use has too much of a manual process for your liking, ask what can be done to change it. Would a different securities company work better with your lender to provide you with digital options?
If you are considering refinancing, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in as little as three minutes.
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.