As more and more commercial lenders make the switch from pen and paper to iPads and tablets, many are wondering if their electronic signature will be valid. The answer is, yes. You can get a VA mortgage electronically if partnering with a participating lender who has the technology in place.

Wit that in mind, the Department of Veterans Affairs published a set of guidelines to help both the borrower and the lender understand just what’s required in order for an electronic signature to be accepted. In VA Circular 26-13-13, the VA states:

“The purpose of this circular is to clarify that electronic signatures are acceptable for use in conjunction with the VA Home Loan program.”

Any lender who uses electronic signatures is required to comply with applicable federal laws established in 2000. The Federal Electronic Signatures in Global and National Commerce Act, commonly referred to as the E-sign Act, was signed into law on June 30, 2000. The E-sign Act served to establish baseline rules for internet commerce, including electronic signatures, stating:

•There should be no discrimination between handwritten and electronic signatures.

•All electronic records should be kept for the same amount of time as a handwritten signature.

•There should be a provision for electronic acknowledgment or notarization of online documents when, and if, necessary.

Additionally, the E-sign Act established that electronic signatures will have the same legal standing, stating in the Act that “No contract or legal document signed online may be denied legal efficacy because it was delivered by an automated program.”

It should also be noted that while the use of electronic signature is permitted, it is NOT mandatory and lenders utilizing electronic signatures must do so while in compliance with the E-sign act.

To learn more about mortgage loans or to speak with the best mortgage lenders in the region, contact our offices in Joplin, MO and let us know how we can help you.