Why Some Borrowers Still Prefer Traditional Closings
The mortgage industry has rapidly embraced digital innovation, offering eClosings and remote notarizations to streamline the home financing process. While many borrowers appreciate the speed and convenience of digital solutions, a significant number still prefer traditional in-person closings. But why, in an age of digital mortgages, do some people continue to favor the old way of doing things?
1. Personal Interaction and Reassurance
Buying a home is one of the most significant financial decisions in a person’s life. For many, sitting across the table from a notary, lender, or closing agent provides a sense of security and reassurance. Borrowers can ask questions on the spot and gain clarity before signing, reducing the anxiety that often comes with such a large commitment.
2. Trust in Physical Documents
Some borrowers place greater trust in paper documents over digital ones. Holding and signing physical paperwork makes the process feel more “official” and less prone to technological risks, such as hacking or system errors. For older generations especially, this tangibility can bring peace of mind.
3. Technology Barriers
Not all borrowers are comfortable navigating digital platforms. Factors such as lack of access to reliable internet, unfamiliarity with electronic signatures, or fear of making mistakes online push many toward traditional closings, where professionals guide them through every page.
4. Complexity of the Transaction
Mortgages involve numerous documents filled with legal and financial terminology. Some borrowers prefer the face-to-face walkthrough that comes with traditional closings, where professionals can slow down, explain terms, and ensure everything is fully understood.
5. Perceived Security and Fraud Concerns
Even though digital closings use advanced encryption and compliance standards, some borrowers worry about cybersecurity threats. Meeting in person and signing in a secure office can feel more protected against fraud or identity theft.
6. Emotional Significance of the Event
For many buyers, closing on a home isn’t just paperwork—it’s a milestone moment. Being physically present in a closing room, pen in hand, can feel more ceremonial and memorable than clicking through a series of digital screens.
Striking the Balance
While digital solutions are becoming the norm, traditional closings still hold value for those who seek personal reassurance, trust in tangible processes, or who face barriers to technology. Lenders and title companies can best serve borrowers by offering flexibility—giving them the choice between fully digital, hybrid, or traditional closings.
