Awareness
You may have heard about the reverse mortgage loan on TV, radio or received a mailer or have done your own research.
Education
Meeting with a qualified reverse mortgage professional is key. This is where you learn about your specific numbers, what you qualify for, and receive an analysis of your particular situation.
Counseling
Counseling is required from an independent third-party, HUD-approved counseling agency, for all reverse mortgage borrowers. Typically this fee is paid by the borrower. Consult with your reverse mortgage professional and make sure you complete this a 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 loan officer and decide if a reverse mortgage is right for you. Our reverse mortgage professionals 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 or family member(s) to review.
Financial Assessment
To help ensure the long-term success of the HECM loan over time, HUD requires a review of each applicant’s credit history, property tax payments and other credit factors that will be evaluated to measure a borrower’s willingness and financial capacity to meet the ongoing obligations of the loan.
Appraisal
Upon receiving your HUD counseling certificate we will contact you to arrange for an appraisal of your property. The appraisal is paid by the borrower. 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. Also verification of income and other credit factors are gathered at this time. 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 chose to do so. After the cancellation (rescission) period has passed your funds are distributed based on the payment option you chose at closing. HECM for Purchase loans do not have a rescission period. See HECM for Purchase Guideline for more information.