Reverse Mortgage Loan Process
Getting a reverse mortgage loan is a multi-step process. Reverse mortgages allow homeowners to use the equity they have built up in their homes. The concept was originally developed to allow "house-rich, cash-poor" elderly or retired homeowners access to their home equity to support things like living expenses or emergency bills without having to sell their homes.
Here are some important steps that will simplify the reverse mortgage loan process for you. With a little preparation and organization, it can help you anticipate what to expect and how to respond to keep things moving along.
Research
The process of getting a reverse mortgage begins with the research. We have provided this website in an effort to help with that process. You can call us to discuss your concerns or to ask questions. You can schedule an appointment to meet with us in person. We will not rush you, we want you to take your time so that you feel confident that you have had the opportunity to get sufficient information about this kind of home financing.
Application
Once you have decided that a Reverse Mortgage is right for you, one of our expert Reverse Mortgage Specialists will guide you through the application package.
Counseling
Reverse mortgage applicants are required to participate in a consumer education session with a HUD-approved counselor. A list of approved counselors will be provided to you and you can choose to meet with a counselor in person or over the phone.
The counseling session takes a little over an hour. The counselor will ensure that you understand your reverse mortgage options. The counselor will explain the legal and financial obligations of a reverse mortgage and discuss other financing alternatives to help ensure you make an informed decision.
Home Appraisal
Once we have received your Signed Counseling Certificate and application, we will coordinate for an appraiser to go to your home. The appraiser to contact you to schedule the appraisal appointment and will let you know how much the fee for the appraisal will be. The fee is due at the time of the appraisal so be prepared to have a check or money order to give the appraiser. The appraisal is used to determine the market value of your home so the appraisal will be used to help calculate the amount you can receive from your reverse mortgage.
Once your appraisal is completed, your appraisal report will be reviewed to ensure it meets minimum guidelines and may be approved, suspended, or approved subject to repairs. If repairs are required prior to approval, the appraiser may be required to come back and verify that those repairs have been properly completed. There could be a small fee for the re-inspection. You will be provided with a copy of your appraisal at closing.
Underwriting
Once your appraisal is approved, a value has been determined, and the title report has been cleared, our underwriting department will review your application and supporting documents to ensure that approval conditions have been met.
Conditions
Most of the time the initial approval is conditional. This means that on the surface, it looks like you are qualified for the reverse mortgage however, there are additional supporting documents needed to insure this is so. When your loan officer provides you with the list of items the underwriter is requesting, do your best to get that information back to the lender within 24 to 48 hours because the process is very time sensitive.
For best results, our loan officer will present you with a list of possible things the underwriter may ask for. We recommend that you place every item on the list in a large envelope in advance so that you have a greater chance of getting your hands on a requested document without having to search for it.
Closing / Settlement
Once your application is approved by the underwriting department, we will schedule a meeting to finalize the paperwork. A notary service will contact you to set up a signing for the loan documents and if necessary can come to your home. The notary document signing usually takes about 1 1/2 hours.
Once the signing is completed, we will then send the final loan documents to the lender, any funds disbursements due to you will be forwarded from the processing center shortly thereafter. The closing usually occurs within 2 to 3 business days and the proceeds will be wired into your account.
Please note: You must have a checking account that is only in the name of the borrowers. You cannot use an account that is shared with non borrowers (your children for example). This is for your protection, to insure that you are the only one that can access these funds.
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