What is the Process to Get a Reverse Mortgage?
by Jeffrey L. Bangerter
September 15th, 2008
One question I hear from my Reverse Mortgage Clients is, "What is the process to get a Reverse Mortgage?"
Below I have listed in general a detailed list on how the steps will occur in setting up your Reverse Mortgage.
Step 1. Action
You contact us to get the information you need, to decide if the Reverse Mortgage is right for you.
Step 2. Application/Documentation
Once you decide that a Reverse Mortgage is beneficial for you, together we fill out and sign the application disclosures and select the payment option: Monthly payments, credit line, lump sum payment or combination thereof, your choice.
Step 3. Counseling
We give you the information on receiving the mandatory third party counseling that must be provided by a HUD approved agency. A Counselor will call you to set up a time to get your counseling session completed. Counseling must be completed prior the Step 4.
Step 4. Processing
The we process your Reverse Mortgage loan, order the appraisal (to determine value of home) title report, lien payoffs and credit report (Good Credit Not Required). After receiving all pertinent information and data, we will then finalize the loan parameters, package loan and submit it for underwriting and final approval.
Step 5. Underwriting
An analysis of the processed documentation (per HUD Guidelines) happens in underwriting; any conditions must be cleared before the granting of the Reverse Mortgage.
Step 6. Closing
The loan is approved and the final in home signing is scheduled. Closing papers and final figures are prepared and signed by you the borrower.
Step 7. Funding
You then have three business days after closing to cancel the Reverse Mortgage. After this period the funds are disbursed. The Reverse Mortgage repays any previous debts/liens on the property and you begin receiving payments according to you selected option or personal situation.
Step 8. Repayment
You do not make any monthly mortgage payments to the lender during the life of the Reverse Mortgage. The Reverse Mortgage becomes due and payable upon; the death of all borrowers, the sale of the home, or if the borrower no longer uses the home as a primary residence. Upon the death of the borrower, the heirs/estate may repay the loan from the sale of the home and cash out on the remaining equity, or refinance the home.
If you want or need assistance in this process, please call 866-309-6626 or fill in the form on the right and we can make this a painless as possible.