The Process of Getting a Reverse Mortgage
Awareness:
You've heard about the program by TV, radio or mail and have done some preliminary
investigation on reverse mortgages.
Education:
Meeting with a qualified reverse mortgage professional is key to learning the facts
about a reverse mortgage, the amount you may qualify for and the various ways you
can get your money. The reverse mortgage specialist will help analyze your situation
so you can decide if a reverse mortgage is right for you.
Counseling:
HUD counseling is mandatory for all reverse mortgage borrowers. Consult with your
reverse mortgage specialist for a list of approved conselors and complete this step
as soon as possible. Many times counseling can be completed over the telephone.
You will receive two certificates; one to keep and the other to send to our office.
Action / Application:
Meet with your trusted reverse mortgage advisor and decide if a reverse mortgage
is right for you. Our reverse mortgage specialist can meet with you at our office
or your home and help guide you through the application. You will be left with a
complete copy of ALL the documents for you and your trusted advisors to review.
Appraisal:
Upon receiving your HUD counseling certificate we will contact you to arrange for
an appraisal of your property. Reverse mortgages use a full FHA appraisal. The value
of your home is based on what comparable properties in your neighborhood have sold
for recently.
Processing:
We (the lender) will begin to process your paperwork. This process includes the
appraisal, title report, and checking the balance of any liens/mortgages to be paid.
We will be in contact regularly during this time.
Underwriting:
When the processing and all paperwork is complete, we forward your file to the loan
underwriter for final approval and will work to satisfy any conditions/requirements
needed to close the loan.
Closing & funds disbursed:
Once your loan has been approved by underwriting we will contact you to arrange
for the signing of your final loan documents. At this time we will confirm your
payment plan or partial lump sum (how you want to receive your money). Once you've
signed the closing documents you have three business days to cancel the loan if
you should choose to do so. Your settlement agent should receive the proceeds on
the fourth business day after closing.
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