Smooth and successful closings: Unveiling the importance of mortgage closing services

7 min readSep 15, 2023

Inflation is through the sky in the economic landscape, which drives it toward a recessionary phase. The rising rate has significantly affected the mortgage industry and poses various threats to the survival of the associated firms.

Many struggle to stay ahead during such a challenging period; some even have to shut down their operations. Given the alarming consequences, outsourcing the mortgage closing process can be the silver bullet for businesses to stay agile, navigate seamlessly, and mitigate the tedious economy’s adverse effects.

This article will discover the compelling reasons that motivate businesses to outsource mortgage closing services. Read on to discover more!

What is Mortgage Post-Closing?

Mortgage Post-closing services refer to the comprehensive process after the responsible individuals sign the mortgage document. An extensive evaluation will ensure that all the submitted documentation complies with the regulations of loan processing and underwriting rules of the package.

Importance of Mortgage Closing Services

Mortgage lenders need a dedicated team of committed and skilled employees to make better, informed decisions on closing costs. Opting for an outsourced mortgage closing service will help them discover whether a borrower is qualified to acquire the mortgage loan, which drives them to review each applicant carefully. Poor lending decisions will result in foreclosure and potential loss for the firm.

Here’s why more and more lenders are now seeking mortgage closing services to handle their needs. It is also because the process of valuation, evaluation, and review of the mortgage application can be expensive, prone to errors, and extremely time-consuming.

Let’s take a look at the advantages of mortgage closing services

Here is a list of advantages of outsourcing mortgage closing services:

Better Customer Satisfaction

Customers are a priority in every industry, and the mortgage industry is no exception. With the competitive landscape, even a little mistake or error can drive customers to other firms. Hence, outsourcing mortgage processing services is the best way to handle customers promptly and proficiently. The expert will help you in clearing the queries of customers and maintain a trustworthy relationship with them.

Cut down overhead costs.

According to the global outsourcing survey by Deloitte, cost reduction is one of the primary perks of outsourcing for most domains, including the mortgage industry. Traditional mortgage processing is expensive as it requires an in-house team and resources. However, choosing an outsource post-closing mortgage partner will not only cut costs but also increase the efficiency of the business. Furthermore, you can customize their services per your unique needs without employing or maintaining in-house assets.

Sustains Business Scalability

In the fluctuating season of the mortgage landscape, hiring and retaining top talent threatens a business’s growth. However, post-closing services eliminates all these challenges and enables brands to scale more efficiently at a lower cost base. They provide the lenders sufficient space to expand their reach without the typical hassles of recurring and hiring full-time employees for the organization.

Promotes Streamline Process

The inexperienced team and certain internal/ external factors might hinder the organized mortgage process. Mortgage post closing service will help you to gain holistic support from experts that will promote the security and stability of your business in a streamlined manner. For instance, in the present situation, mortgage and foreclosure services are highly complex, which can be simplified and organized effectively through outsourcing.

Access to Advanced Technology

Investing in innovative technologies helps mortgage businesses beat the industry’s competitiveness and inflation. However, a hefty investment is not for every business, especially when the market is unfavorable. Partnering with the mortgage process outsourcing service provider will enable businesses access to the latest technologies, including Artificial Intelligence, Robotic Process Automation, and more. It will accelerate your mortgage cycle, reducing the processing time.

Enable Focus on Core Functions

Mortgage closing services help the business to focus on its core operations. As the processing is a tedious task, it requires the attention of a skilled professional. In this way, mortgage companies have concentrated on other core tasks and strategies, including maintenance and revenue-generation tasks. While on the other hand, mortgage-related tasks like tax monitoring will be handled by experts in the industry to ensure enhanced productivity and profitability for the business.

Leverage Integrated and Automated Systems

Businesses can benefit by adopting automation in post closing services throughout the process. Access to advanced integrated and automated systems is usually time-consuming if installed in-house. However, opting for third-party professionals will equip your company with the requisite infrastructure to carry out the whole process and provide a seamless digital experience to customers.

Comprehensive Credit Check

As a responsible lender, one must follow up with the borrowers periodically for credit checks. However, it becomes a challenge with the constant need to keep up with evolving regulatory compliance, rising costs, changing techniques, and expensive budgets. Here, opting for a third-party’s mortgage post closing services will help you conduct a comprehensive credit check while taking care of every aspect of the process.

Step involved in Mortgage Post-Close Audit

Every process has a beginning and an end, and mortgage processing is no exception. After you close your mortgage, the lender should undergo a vital process — a mortgage post-close audit, which involves several steps, like:

Data-quality audit — Mortgage processing is a substantial space that encompasses several aspects. Each of them involves various data sets of the borrower. Here, the audit will conduct error checks on the data and address the highlighted issues.
Retrieving of documents — This step is also called document tracking, where the auditors track the necessary documents, including tax records, trust deeds, liens, and commercial code records, to ensure accuracy and completeness.
Collation of loan package — After completing the mortgage, you must gather the necessary documents to build the post-cloaking loan packages. It includes HUD-1 with signatures, trust deeds, appendices, and more to prevent fraud.

Common factors that cause delays in mortgage closing services

Unexpected delays in mortgage closing can be a frustrating experience. Here’s why you might be dealing with closing deals.

Issues with title — A title, which asserts the legal right over a property, with issues can cause legal complications and delay in the closing process.
Problems in inspection — Sometimes, home inspectors could unveil certain problems in the property, including code violations, fire hazards, wiring issues, and roof leaks that will cause toenail delay. Even a minor problem will put the closing service on hold until it is resolved to the standard bar of satisfaction.
Discrepancy in appraisal value — If the appraisal value falls short or exceeds the standard prices, the bank will delay the post-closing service.

Factors to consider when choosing a reliable mortgage closing services company

Now that you know the benefits of outsourcing mortgage processing services, it’s time to decide your choice. Here are some factors to remember while narrowing your search for an ideal mortgage service partner.

Evaluate experience — The experience of the mortgage service provider will be a good indicator that will help you know how effortlessly they can perform your mortgage processing work.
Conduct a background check — Make a background check about the service provider and ensure their credibility in the industry. Reading the reviews alone will mislead your decision-making. Hence dig deeper and ask for every reference before you choose them.
Consider the communication channels — Depending on your conversation with the outsource mortgage processing service provider, you can better know their skills and expertise in the field.

Get Ready to Ride the Next Waves toward Better Security!

The mortgage closing is usually a lengthy, laborious, and capital-intensive process. Finding the right partner will help you leverage the technologies and transform the methodology to improve processing speed and enhance customer experience.

At SBL Corp, we provide custom-made and efficient mortgage post closing services, which will ultimately promote the growth and profitability of your business in the mortgage industry. Connect with us today and transform your setback into success with our streamlined services!

Frequently Asked Questions (FAQs)

Q1. What is the closing process for a mortgage?

The mortgage closing process is the final phase of the mortgage loan process, where the property title will pass from the seller to the borrower.

Q2. What are the steps in the mortgage closing process?

Here are the mortgage closing process steps to help you clear all the hundreds and take ownership of your new home.

Finale the homeowner’s insurance
Decide on the rule
Review the documents for mortgage closing
Gather the necessary document and plan the questions for closing
Sign up for the required papers.

Q3. What is the closing process?

The closing process is the series of steps to own a property officially. The process will take days to several months to complete. Your lender might need time to review the documents and analyze funds before they record the properly in your name.

Q4. What is the role of a mortgage closing service?

Experts from mortgage closing services play a vital role in collecting the mortgage closing documents, reviewing the documented legal rights of the property, and inquiring about their concerns about ongoing laws and taxes through tax authorities, insurers, and investors.