Reverse Mortgage Process

A common false impression with the reverse mortgage loan is that the procedure may be a lengthy one.  This simply isn’t the case.  The technique for receiving a reverse mortgage at one reverse mortgage is an easy 4 step process. Right here is what you can expect during the reverse mortgage process.

1: Communicate with us, completes the application and counseling

Step one is to give us a call and speak with a certified professional.  They can evaluate your situation with you and decide if a reverse mortgage is good for you or not. 

If this system makes sense for your financial goals an application can be sent out to you. 

We will assist you with the paperwork and assist you in figuring out the fine way to acquire your money out of your new reverse mortgage. 

You may select to receive your money in a

• Lump sum – take all of your cash today
• Time period payments – equal amount of cash for a fixed length of months or years
• Tenure payments – like time period payments however they do no longer leave until you are now not occupying the home

Or a combination of the above payment methods. As an instance, partial lump sum with the remainder paid to you monthly.

Not exactly sure what choice you need to pick out? Your licensed mortgage expert will evaluate your occasions with you in as much detail as you need. They are able to help you make a decision based on your life style, your desires and your desires in your retirement.

The U.S. Department of Housing and Urban Development (HUD) requires that each one candidate receive 1/3-celebration counseling to explain the available options and info of a reverse mortgage. We offer you a listing of counselors on your place and you can pick out one from the list. You pay a fee for the counseling consultation, which normally takes about an hour.

2. Appraisal inspection

The next step after counseling is to get your home appraised. The appraisal is nearly as quick as the counseling session. Appraisals normally cost about four hundred dollars. One reverse mortgage does not make a profit from those proceeds; you pay what we pay.

After appraisal, the loan goes to the underwriting procedure in which all of the files are revised and finalized.

3. Closing and Disbursement

When it’s time for closing, we can come to you with all of the documents to sign… it’s that easy!

Before disbursement there's a period during which you could pick out to cancel the transaction. 

Federal law wants us to attend until we’re sure you haven’t canceled earlier than we disburse your budget. 

Once you get your proceeds, you could use the money to pay off any debts you choose or to spend the cash wherever you want.

4. Repayment

During the loan period, you may not have to pay monthly mortgage charge* to your lender. 

But, you will remain answerable for the charge of taxes, insurance and maintenance.

Reverse mortgages become due whilst the borrower(s) now not occupies the home. 

If borrower dies, the heirs/estate may pay off the mortgage from the sale of the home or refinance the house.

That’s the brief and easy Reverse Mortgage process.

*homeowner is still responsible for taxes, insurance and property preservation.