The Steps to a Reverse Mortgage

Reverse Mortgage Home >>> Steps to a Reverse Mortgage

Once you have made the decision to pursue a reverse mortgage and make the first move, the remainder of the process will be explained to you.  The steps are very similar to obtaining a regular home mortgage.  You went through the process when you bought your home so you will be familiar with many of the requirements to get your money.

A – Do Your Homework – before you take your first step, familiarize yourself with literature and online research using sites such as this to decipher the terminology and the current reverse mortgage details.  As with regular mortgages, interest rates and requirements can change at any time.

B – Make the Initial Contact – Find a reverse mortgage counselor from a local HUD approved agency or a National counseling agency. The counselor will discuss your options.  They are obligated to be neutral.  They will not try to persuade you  or influence you.  They are there to educate you and offer you available options.  It’s a mandatory step and is in place to protect you.  It can be handled in person or over the phone. AARP is an example of a National Counseling Agency.

C – Loan Application/Disclosure – With this step the application is completed and a payment plan/payout option is chosen by you.

D – Loan Processing – The lender that you are working with order an appraisal to determine your home’s worth.

E – Underwriting – The lender finalizes the loan details with the homeowner and submits the loan package for approval.  This process commonly takes 4-8 weeks.

F – Closing – very much like the closing when your home was purchases.  Closing cost are quite often factored into the loan amount.

G – Disbursement of the funds are handled 3 days after the closing.