An electronic signature is a digital signature method used for eligible mortgage documents during disclosure review or closing.
An electronic signature is a digital signature method used for eligible mortgage documents instead of a handwritten ink signature on paper.
Electronic signature matters because borrowers may receive some mortgage disclosures and closing documents through an online portal before the final appointment. Signing electronically can speed up document review, reduce paper handling, and make a Hybrid Closing easier to coordinate.
It also matters because electronic signature does not mean every mortgage document can be completed online. Some documents may still require a Wet Signature, notarization, or a separate Remote Online Notarization workflow. A digital note, by contrast, is an Electronic Note (eNote).
Borrowers may encounter electronic signatures during early disclosure delivery, document review, and the final Signing process. The term becomes especially practical after Clear to Close when the lender, title company, or settlement agent explains which documents can be signed before the appointment and which must wait.
Electronic signature language may appear in borrower consent steps, lender portals, closing instructions, and hybrid closing packages.
| Term | Main idea | Borrower-facing difference |
|---|---|---|
| Electronic signature | Digital signing method for eligible documents | The borrower signs through an approved electronic process |
| Wet Signature | Handwritten ink signature on paper | The borrower signs a physical document |
| Hybrid Closing | Mixed electronic and in-person closing format | Some documents are electronic and others remain paper or notarized |
| Remote Online Notarization | Online notarization process | Notarization is completed through a separate approved digital workflow |
| Signing | Final execution step | The signing step may include electronic, paper, hybrid, or remote elements |
A borrower reviews several closing disclosures in the lender portal and signs the acknowledgments electronically before the closing appointment. The next day, the borrower still signs the note and notarized mortgage documents with a closing professional. The online acknowledgments used electronic signatures, but the whole closing was not fully remote.
Electronic signature differs from Wet Signature because the signature is applied through a digital process instead of ink on paper.
It also differs from Remote Online Notarization. Electronic signature is a signing method. Remote online notarization is a notarization process that may also involve electronic signatures.
It also differs from Hybrid Closing. A hybrid closing is the broader mixed-format closing arrangement, while electronic signature describes one method used for eligible documents.
It also differs from Electronic Note (eNote). Electronic signature is the method used to sign; an electronic note is the digital mortgage note being signed.