The Reverse Mortgage Process
Reverse Mortgage Process
Reverse Mortgage Programs
Frequently Asked Questions | The Reverse Mortgage Process
The Application and Documentation
The first step is applying. The borrower can meet with a Reverse Mortgage Loan Specialist in their home, office or request and application by mail.
The application package contains a detailed explanation of the program, disclosures and a sample copy of the closing documents.
We Will require the following documentation:
• Copy of your photo ID and Social Security or Medicare card
• Name and phone number of your homeowner’s insurance agent
• If you have an existing mortgage to be paid off, we will need the name of the lender and loan number
• If you have a living trust, we will need a complete copy of the trust
• HUD Counseling Certificate
• We do not ask for any money from you, all closing costs are included in the loan
Processing, Underwriting and Closing
We will order the appraisal and termite inspections. The inspectors will call you to schedule a time that is convenient for you. Once all of the necessary documentation is received your loan package is submitted to one of our HUD endorsed underwriters.
Loan approval is back within a few days and we will call you to confirm how you want to receive the money and schedule a time to come to your home to sign the loan documents.
After a three day period that allows you time to completely review the documents, the loan is funded. If you requested an initial draw, it is wired into your account or a check is mailed to you. Any existing debt is paid off and a new lien is placed on your home.
If you selected a monthly payment, you will receive it in the first week of the following month. If you selected a line of credit, it will be made available to you.
You will receive regular statements on your account.
Repayment
You do not have to make any payments during the life of the loan. It becomes due when the last borrower moves, sells or passes away. If heirs want to keep the house and not sell, they may pay off the loan balance through refinance or their own funds. FHA guarantees the amount to be paid will never exceed the value of the home.
