Steps to Obtaining a Reverse Mortgage
In order to decide if a reverse mortgage is right for you, it is important to understand exactly what a reverse mortgage is. Outlined below are the steps of the reverse mortgage process. We are here to answer any questions you may have along the way!
What is a Reverse Mortgage?
A reverse mortgage is a unique product available to homeowners who are at least 62 years of age who live in their home as their primary residence. A reverse mortgage is a helpful tool that allows you to liquidate a portion of the equity in your home. This equity can be disbursed to you in several different ways, depending on your preference.
The Reverse Mortgage Process
Consultation & Counseling
Generally, the first thing you will do in pursuing a reverse mortgage is speak with a specialist who will go over your options including your responsibilities, how it could affect any existing financial assistance you receive, and how the process works. After speaking with a specialist, you will be required to attend counseling with a HUD-approved counselor. This counseling serves as a way to protect you from receiving any biased information. You and the counselor must sign a document certifying your understanding of the concepts covered.
Application & Appraisal
After attending reverse mortgage counseling with a HUD-approved counselor, you will be able to officially “apply” for the reverse mortgage. Your reverse mortgage specialist will send you a disclosure package with preliminary paperwork detailing the terms of the reverse mortgage. Also, during this process, an appraisal will be required.
Underwriting & Closing
After the reverse mortgage specialist receives the appraisal back as well as the preliminary paperwork, signed by you, they will be able to submit the loan to underwriting. The underwriter will then issue full approval, conditional approval, or deny the loan. After the loan has full approval from the underwriter, the reverse mortgage specialist will schedule a closing that is convenient for you. After the reverse mortgage closes, you will have a three-day right of rescission before the loan funds.