Digital Closing 101: What Every Borrower Needs to Know

As the mortgage industry rapidly digitizes, traditional in-person closings are being replaced with streamlined, tech-driven processes known as digital closings (or eClosings). If you're a homebuyer preparing for your mortgage journey in 2025, understanding how digital closings work is no longer optional—it's essential.

This guide breaks down what digital closings are, the key components involved, and what you—as a borrower—need to know before signing on the digital dotted line.

What Is a Digital Closing?

A digital closing is the electronic execution of some or all of the closing documents in a mortgage transaction. Rather than sitting in a title office with stacks of paper, borrowers can now complete most of the closing process online—often from the comfort of their own home.

There are three types of digital closings:

1. Hybrid eClosing: Some documents are signed electronically, while others still require wet (physical) signatures.

2. In-Person Electronic Notarization (IPEN): All documents are signed electronically, but a notary is physically present.

3. Remote Online Notarization (RON): The entire process, including notarization, is completed remotely via a secure video conference.

Benefits of a Digital Closing

• Convenience: Sign documents from anywhere, anytime.

• Speed: Close faster with fewer delays and streamlined workflows.

• Accuracy: Fewer errors thanks to automated checks and digital validation tools.

• Security: Documents are encrypted and securely stored.

• Transparency: Borrowers have access to documents in advance and can review them at their own pace.

What You Need as a Borrower

To participate in a digital closing, borrowers typically need the following:

• A reliable internet connection

• A computer, tablet, or smartphone

• Government-issued ID for identity verification

• Access to an eClosing platform (provided by your lender or title company)

• Digital literacy—basic comfort with navigating online forms and video calls

Steps in the Digital Closing Process

1. Pre-Closing Review
   You’ll receive documents in advance via a secure portal. This gives you time to ask questions and fully understand what you’re signing.

2. eSigning Documents
   On the day of closing, you’ll electronically sign most of the forms. Some lenders may require a hybrid closing if specific documents need to be signed manually.

3. Online Notarization (if applicable)
   If your closing includes RON, a certified notary will verify your identity and witness your signature through a secure video session.

4. Final Review and Funding
   After signing, your lender and title company finalize the documents, and the funds are released to complete the transaction.

Digital Closing vs. Traditional Closing

FeatureTraditional ClosingDigital ClosingIn-person presenceRequiredOptionalPaperworkPhysicalElectronicSigning processManualeSignature / OnlineTime requiredLongerFasterAccessibilityLimitedNationwide, remote

Challenges to Be Aware Of

• Not all states allow RON—make sure your location supports full digital closings.

• Technology hiccups—test your device and internet beforehand.

• Digital fatigue—despite its convenience, some borrowers still prefer face-to-face reassurance.

Final Thoughts

The mortgage closing experience is evolving—and digital closings are leading the charge. Whether you're a first-time buyer or a seasoned investor, embracing eClosings can save you time, stress, and even money. But like any major step in the home-buying process, preparation is key.

Before your closing day, talk to your lender or title agent to understand exactly what type of digital closing you'll experience and make sure you’re comfortable with the tools involved.