The Reverse Mortgage Process

You will meet with a reverse mortgage loan officer. The reverse mortgage loan officer will either come to your home or you may come to our office.  We will go over the reverse mortgage application and explain the whole process in great detail. This does not commit you to a Reverse Mortgage, so go ahead and set an appointment.

One of the requirements is to be counseled by a HUD approved counselor. HUD put this in place to make sure you fully understand the reverse mortgage process. We provide a approved HUD counselor list in your area and the sessions usually take 30 to 45 minutes.

Once we receive your counseling certificate from a HUD counselor, we order an appraisal on the property to get the exact value. We will also order payoff amounts if you have a mortgage and title work to make sure you have no other liens on title.

After we have gathered all of these items for the reverse mortgage we will set a date with you to close the loan. At this point, you still have 3 days to cancel or to make sure everything is exactly how we explained.

On the 4th day, the loan will fund and you will receive your money! So take that trip, pay bills and get back to enjoying life.

Wondering how long the process takes from beginning to end? On average it's 30 to 45 days from the time of counseling.

So Too Sum Up The Reverse Mortgage Process:

The Reverse Mortgage Process
Below is the process for starting and learning about how Reverse Mortgages work. You can see how a Reverse Mortgage is started by following the procedures below.

1. Reverse Mortgage Awareness

Homeowner learns about the reverse mortgage program from a news article, Internet advertisement, word-of mouth, etc.

2. Reverse Mortgage Action

Homeowner seeks additional information and documentation by contacting iReverse Home Loans/The Valdez Group
(866-583-5229), HUD, Fannie Mae, AARP, NCOA (National Counsel of Aging), or the National Center for Home Equity Conversion.

3. Reverse Mortgage Application

Homeowner fills out loan application and selects payment option: fixed monthly payments, lump sum payment, line of credit, or a combination of these. Lender discloses to homeowner the estimated total cost of the loan, as required by the federal Truth in Lending Act. Lender collects money for home appraisal. Homeowner provides lender with required information, including photo ID, verification of Social Security number, copy of deed to home, information on any existing mortgage(s) on property, and counseling certificate.

4. Reverse Mortgage Counseling

Homeowner seeks counseling from a local HUD-approved counseling agency, or a national counseling agency, such as AARP, National Foundation for Credit Counseling, or Money Management International. Counseling is required for all reverse mortgages and may be conducted face-to-face or by telephone.

By law, a counselor must review (i) options, other than a reverse mortgage, that are available to the prospective borrower, including housing, social services, health and financial alternatives; (ii) other home equity conversion options that are or may become available to the prospective borrower, such as property tax deferral programs; (iii) the financial implications of entering into a reverse mortgage; and, (iv) the tax consequences affecting the prospective borrower's eligibility under state or federal programs and the impact on the estate or his or her heirs.

5. Reverse Mortgage Processing

Reverse Mortgage Lender orders appraisal, title work, lien payoffs, etc. An appraiser comes to your home. The appraiser assigns a value to the home and determines the physical condition of the property. If the appraiser uncovers structural defects that require repair, the homeowner must hire a contractor to complete the repairs after the Reverse Mortgage closes.

6. Reverse Mortgage Closing

Following approval, closing (signing) of loan is scheduled. Closing papers and exact figures are prepared. Closing costs are normally financed as part of the loan.

 

 

 

 

7. Reverse Mortgage Disbursement

Homeowner has three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed. Homeowner accesses the funds in the form of the payment option selected. Any existing debt on the home is paid off. A new lien is placed on the home. The homeowner may use the loan proceeds for any purpose. During the life of the loan, the loan "servicer" disburses monthly payments to the homeowner (if this option is chosen), advances line of credit funds upon request, collects any repayments on the line of credit, and sends periodic statements.

Start a Reverse Mortgage
Starting a Reverse Mortgage is an easy task. Simply contact us or fill out the Free Reverse Mortgage quote form at the top of the page. We will answer any questions you may have and provide you with the necessary documentation and paperwork to begin a Reverse Mortgage.

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