The Reverse Mortgage Process
Our Easy 5 Step Process
- Talk with us about your situation – We want to understand your goals so we can help you determine if the reverse mortgage program makes sense for you. Learning about the program from the comfort of your own home is a good way to start, you can request a free guide and DVD that will be shipped to you.
- Complete your application and attend counseling – Your licensed expert will review the application with you and provide you with the information you need to make your counseling appointment. Learn more about the easy 3rd party counseling process by clicking the tab below.
- Appraisal – Your home will be appraised by an independent FHA approved appraiser. After appraisal, the loan will move to the underwriting process. Learn more about the appraisal process by clicking the appraisal tab below.
- Closing and disbursement – There is no need to leave your home to close your loan. We will come to you and you will close in the comfort of your home.
- Repayment – You are not required to make a monthly mortgage payment as long as the property remains your primary residence. You will be responsible for payment of taxes, insurance and maintenance. The balance of your reverse mortgage becomes due when the borrower(s) no longer occupies the home or passes away. Your heirs do not assume the debt but have the option to keep the home through purchase or refinance if they choose.
What is counseling and why is it required?
Reverse mortgage counseling is facilitated by a third party who is approved by the United States Department of Housing and Urban Development (HUD). The counselor makes sure you understand the reverse mortgage loan program and other financial options. You don’t have to worry about finding a counselor.HUD requires all borrowers to attend counseling. Counseling ensures that you are aware of all of your financial options before you start the reverse mortgage process. This process is very easy and you can learn about the counseling requirement in our informational guide and DVD when you start the process or when you speak to one of our licensed experts.
In order to determine how much money you qualify for, your home needs to be appraised to determine its value. We understand you may have questions about this. Here you will find some basic information about the appraisal process.
There are three steps to the appraisal:
- The appraiser comes to your home and performs an inspection.
- The appraiser will research similar homes in the area and compare recent sales to determine a fair market value.
- The appraiser will give a final report with all of the data and research and give an “opinion of value.”
How does an appraisal work?
- The inspection – a licensed appraiser comes to the property and inspects your home to determine fair market value.
- Comparables – the appraiser will research homes in your area and will compare recent sales in your area to determine market value.
- Final Appraisal Report – the appraiser will gather all findings from the inspection and comparable research to issue a final appraisal report for your home.