Opinion: Embracing digital tools to streamline the closing process

Tammy Sawyers

Today’s fast-paced digital world means technology is constantly evolving. It’s hard to imagine there’s an industry that hasn’t been impacted by innovation, including real estate. In fact, the real estate industry is going through its own transformation journey as lenders and title companies increasingly embrace digital tools to streamline processes and enhance their return on investment.

For closing companies, integrating technology into the real estate closing process is not merely a trend but a crucial evolution responding to the growing demand for efficiency and convenience.

According to the National Association of Realtors, the average homebuyer in 2023 was 35 years old, falling right in the middle of the millennial generation who grew up in an evolving digital landscape and have embraced technology as part of their daily lives. But the next homebuying generation – Gen Z – has never known a world without smartphones.

If we look at the average age of a homebuyer, these tech-savvy consumers will be the typical homebuyer in six to eight years. As they become more influential in the real estate market, conducting transactions digitally won’t be just a preference but an expectation. By offering a seamless, digital-first experience, lenders and title companies can attract and retain clients who value efficiency.

One example of digital transformation in real estate has been a game-changer in the closing process – remote closings. The traditional process of real estate transactions has long had its share of pain points with in-person meetings, stacks of paperwork and possible delays.

Remote closings allow buyers, sellers and other parties involved in the transaction to complete the closing process electronically without the need to meet in person.

Through secure digital platforms, documents can be reviewed, signed and notarized remotely.

Currently, remote or digital closings are legal in 44 states, including Missouri, and several other countries. In 2020, Missouri notaries were allowed to perform remote online notarizations, which gave individuals the ability to provide remote or online notaries. This process drastically reduces time compared to traditional notarizations.

The great thing about these digital capabilities is that there are options to suit every preference and need. Those who want or need a remote closing can opt to complete the transaction process from anywhere in the world with internet access. Those who prefer a blend of traditional and digital can go with a hybrid approach where some documents are able to be signed electronically, while others will require a meeting in person for physical signatures.

And even if there is a need to sign documents in person, technology has provided the ability to make that process more convenient.

Not long ago, I was able to close a buyer’s real estate transaction in the parking lot of a place of employment with our Closings on the Go mobile closing hosted out of a vans equipped with the technology needed to complete the transaction. The buyer’s husband was a dispatcher and was unable to leave work. I drove our van to meet the couple at his workplace, used my mobile hotspot to securely gain access to my computer, and printed their documents in the van for their signatures.

Technology changes daily and people change with it. Lenders and title companies need to be forward thinking to keep up, or we may end up behind and eventually nonessential. As my example showed, implementing digital tools doesn’t mean we lose the ability to provide a positive customer experience. When we embrace and adopt technology, we’re in a better position to increase customer satisfaction by meeting our customers’ needs today and in the future.

Tammy Sawyers is a senior closing agent for Waco Title and can be reached at tsawyers@wacotitle.com.