All about eClosings — How to close your mortgage online

You likely shop, bank and keep up with friends online. As our lives become increasingly more digital, traditional paper-based processes are moving online — including closing on a home.

An eClosing (electronic closing) is a mortgage closing in which everything is completed electronically. Read on to learn more about the process.

Closing is the last step in purchasing and financing a home. With a traditional closing, a buyer will typically attend an in-person meeting to sign all the necessary documents, such as the closing disclosure, the loan estimate and a promissory note. Real estate agents, attorneys and representatives from the lender, title insurance company and escrow company may all be present. Certain documents are required by federal, state and local law, and by your lender. Once they’re signed, you become legally responsible for your  mortgage loan .

Money may also change hands at your closing. You will pay the  down payment , as well as closing costs . The lender pays the funds from the mortgage loan. The closing agent is responsible for distributing the designated dollar amount of the home to the seller and the closing costs, which are paid to the lender, attorneys and other professionals. The buyer often receives the keys to the property at the closing and can move into the home.

With an eClosing, these steps happen virtually. All documents are securely signed electronically. Funds are also transferred electronically. The parties involved may even choose to meet via video conference, though it isn’t required.

Another option is a hybrid eClosing. In this case, some aspects of closing are completed virtually, while others take place in person. With this approach, borrowers may sign the documents electronically, but then meet in person with a notary public to have them notarized. Ally Home offers a hybrid eClosing option to help you spend less time in-person with a notary.

These days, more and more major life moments happen over the internet. With an eClosing, you can even finalize your mortgage at a distance. With Ally Home, you can get pre-approved for a mortgage in as little as three minutes and the process is completely online. Use technology to save time in your journey toward homeownership.