Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender. Here are the steps you can expect to go through when you apply for your reverse mortgage with Reverse Mortgage Advisors.
Discussion
The first thing we like to do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. We talk about the pros and cons, how it works, how much money you might receive and anything else you’d like to know about. Our goal and responsibility to our clients is to help them decide if the reverse mortgage is the right financial fit for their situation.
Counseling
If you decide that a reverse mortgage is the right choice, you receive independent counseling from a certified, HUD-approved counselor to make sure that you have had all your questions answered. It’s an added safeguard that the government has built into the process of obtaining a reverse mortgage to ensure that all clients know and understand how the program works.
Application
Once you are ready to proceed, you will complete a reverse mortgage loan application with your loan officer. Once the application is complete, we can start to process the loan transaction.
Appraisal
Once the loan application is in our processing department, we arrange for a FHA-approved appraisal to determine the objective market value of your home and whether any repairs will be required to meet the Federal Housing Administration’s guidelines.
Underwriting
After the appraisal and any required inspection reports are complete, we go through all the normal processing procedures that you might find in any mortgage. Each loan file will go through a credit, income and property analysis to determine if the loan meets FHA guidelines.
Closing
After the underwriter has approved the loan file, you will review and sign final loan closing documents. Should you change your mind at this stage, you will have three business days to cancel (for a HECM Purchase there is no 3 day waiting period). After the three business days, and any funding conditions are resolved, you will have access to your funds, depending on the type of disbursement you choose. Your loan officer will provide you with more detailed information on how to receive those funds. Then it’s up to you: pay bills, fix up the house, help a family member, or use the money to enjoy your life in any other way you see fit!
