Seniors who are 62 and older who own their homes or have a low mortgage balance can take out a reverse mortgage and receive cash for the equity of their house. Reverse mortgages have many benefits including no monthly payment, no income requirement, no credit requirement, and are federally insured. Reverse mortgages can be extremely confusing if you do not have the proper information. A reverse mortgage tends to be long process, and One Reverse Mortgage strives to have one of the fastest close rates at 30 to 45 days. Below is a step-by-step guide to a successful reverse mortgage.
Knowing what a reverse mortgage is and how it works is essential, One Reverse Mortgage offers and free guide and informational DVD to ensure you have the proper background knowledge of a reverse mortgage. It is also imperative that the company you chose to work with is a reputable company that you can trust and will treat you right. One Reverse Mortgage is a very highly rated company with a 98 percent satisfaction rate. According to Pat (Nobleville, IN), “Could not have been more pleased with the service received from Jennifer, in particular, as well as others I dealt with. Each step was explained, questions answered and process was smooth with very few hold-ups. The funds will allow us to help family and do some nice things for ourselves without worry.”
After compiling all your research, the next step is to complete an application. The application is not binding in anyway and can be cancelled at any time. The applications specifies all fees, interest rates, and potential loan amounts. This is also where you determine how you would like to receive your payment. You can receive a lump sum, monthly payments, a line of credit, or a combination of the three. Your application will be reviewed by a licensed expert with you and provide you all the information you may need to make a counseling appointment.
It is required that in order to take out a reverse mortgage you attend a counseling appointment. This appointment is to ensure that the consumer fully understands a reverse mortgage. One Reverse Mortgage counseling is facilitated by an approved third party. The reason that the counseling is done by a third party is to guarantee that the information you are given is completely unbiased. These counselor make certain to inform you of all financial options before starting the reverse mortgage process.
Once your application is processed an appraisal, lein payoffs, and credit report are ordered. Your home will be inspected by an approved FHA independent appraiser. There are three steps to an appraisal; in home inspection, research and compare similar homes in the area, and a final report filled with all of the research and data. These three steps help ensure that you receive the fair market value.
After proper documentation is completed the loan will be submit for final approval. Once the loan is approved a final signing is scheduled where closing costs and the interest rate is calculated. One Reverse Mortgage makes things easy by coming to you in the comfort of your own home.
After the closing of the loan you have three business days to cancel. After this three day period has passed, you will begin receiving payments according to whichever payment option you selected that best suited your unique loan.
There are absolutely no monthly payments made.* The reverse mortgage balance only becomes due when the home is sold, the home is no longer a primary residence, or the borrower passes away. You are responsible for taxes, insurance, and maintenance of the property. In the event that the borrower passes the home may be repaid by the sale of the home or refinancing of the existing reverse mortgage. The remaining equity belongs in full to the heirs of the estate.
*Homeowner is still responsible for taxes, insurance and property maintenance.