Why Some Borrowers Still Prefer Traditional Closings
In today’s digital-first mortgage landscape, electronic closings (eClosings) are quickly becoming the standard. With the convenience of signing documents online, faster processing times, and reduced paperwork, eMortgages are reshaping the lending experience in the U.S.
However, despite the rapid adoption of digital solutions, many borrowers continue to prefer traditional, in-person closings. Understanding why can help lenders strike the right balance between technology and personal connection.
1. The Human Touch Matters
For many borrowers, buying a home is the largest financial decision of their lives. Sitting across the table from a closing agent, attorney, or notary provides reassurance and the opportunity to ask last-minute questions face-to-face. This personal interaction builds trust that technology alone can’t always replicate.
2. Comfort with Familiar Processes
While digital closings are efficient, not every borrower feels comfortable navigating online platforms. Some prefer the familiarity of paper documents and in-person signing, especially older generations or first-time buyers who may feel overwhelmed by technology.
3. Perception of Security
Even though digital platforms are designed with advanced security measures, many borrowers still perceive in-person signings as safer. Handing over physical identification and signing with ink can feel more secure than uploading sensitive information online.
4. Reduced Risk of Mistakes
At a traditional closing, a settlement agent can walk borrowers through each page of the documents, pointing out critical details. This reduces the chance of signing errors and ensures that questions are answered on the spot.
5. Emotional Significance
Closing day is often viewed as the final milestone in the homebuying journey. For some borrowers, physically signing papers, receiving the keys, and taking a photo at the closing table feels like a meaningful ceremony that digital processes can’t fully capture.
Finding the Balance
As the mortgage industry continues to digitize, it’s important to recognize that not all borrowers are ready—or willing—to move entirely online. By offering hybrid options (a mix of digital convenience with some in-person elements), lenders can meet the diverse needs of their clients.
The future of mortgage closings is undoubtedly digital, but traditional closings still hold a valuable place for borrowers who prioritize trust, security, and personal connection.
