|Home-Buyers Shred the Paperwork, Avoid the Headaches
DENVER, June 6 /PRNewswire/ -- Anyone who has bought a home knows that the process is stressful, especially considering the amount of negotiating, anticipation and most of all, paperwork that is involved. But closing a deal has become a lot easier thanks to technology and a signature -- an electronic signature.
A recent federal law making electronic signatures binding has changed the mortgage business by eliminating the reams of paper that plague the process of financing a home.
Companies such as Denver-based Entrust Financial Services, Inc. sit on the cutting edge of the mortgage business's new frontier.
Through its subsidiary, Entrust Mortgage, Entrust has developed mortgage-banking software for brokers who use it to take customers through the home buying process in minutes as opposed to days.
Jung Song, Owner of Primus Lending, couldn't believe how fast his employees were able to approve loans. "The Entrust on-line approval system lets my loan officers get instantaneous decisioning from an abbreviated application system and provides them a detailed stipulation list showing what documentation we need to submit to Entrust to close the loan," Song says. "The process is quick and easy and it helps even my inexperienced loan officers to give immediate and accurate decisions to our borrowers."
The automated process begins by pointing brokers to the best program a borrower qualifies for. Then the broker submits a complete mortgage package. Brokers can transmit conditions electronically to the proper workstation throughout the loan process.
"By using the electronic system, brokers are able to transfer files to a number of people who can communicate back to the broker by using e-mail attachments," says Scott Sax, President of Entrust.
"When the loan file is approved by underwriting, the homebuyer can receive closing documentation via electronic transmission."
Electronic file flow not only saves Entrust time, it also saves money.
"We need fewer employees to do the job in a paperless environment than we needed before the use of e-mail and electronic signatures," says Sax. "We need far less storage space for documents as well. That saves us money and when we save money, the borrower saves money too."
Perhaps the headaches of buying a home are now dramatically reduced thanks to the new Internet communication technology and a reduced paper system, which markedly speeds up communication and reduces stress.