Effective on April 27, 2015, The Department of HUD introduced a financial assessment requirement for all…
If your thinking about getting a reverse mortgage you’ve probably done a lot of research online. To get a good idea if a reverse mortgage is right for you it helps to see your numbers, possible scenarios and have all your questions answered. That’s why we recommend scheduling a free consultation.
During the consultation we will discuss how a reverse mortgage works, your specific options and answer all your questions. This free consultation is designed to be informational, and can be done in person or over the phone. You’ll receive a personalized reverse mortgage quote package that includes; estimated loan costs, rates, fees and the potential proceeds you may qualify to receive.
HUD Counseling Session
The next step after your consultation is scheduling the required HUD Counseling Session with a HUD Approved Counseling agency. The Department of Housing and Urban Development (HUD) requires that all reverse mortgage applicants receive HUD counseling from an independent 3rd party counseling agency before applying for a reverse mortgage. Their is an out of pocket expense paid to the HUD counseling agency. This counseling session is available in many languages and may also be done in person or by phone.
Here you can find HUD.GOV’s list of Approved HUD Counseling Agencies.
Reverse Mortgage Application Process
After completing your HUD Counseling you’ll receive a counseling certificate, which means you can now apply for a reverse mortgage! You’ll need to contact us to begin the application process. During this time we will start ordering the required documentation needed for your reverse mortgage, such as your credit report, title review, flood determination and any other required documents for the application.
During the application process your home you’ll need to have your home appraised to assess its current market value, the amount you are eligible to receive is largely based on your home’s appraised value. To complete the appraisal a 3rd party appraiser will visit your home to make assessments to the exterior, interior condition, compare recently sold properties in the area and other factors to come up with your homes assessed value. This process can take up to a week or more, and in some cases a second appraisal can be required.
The Approval Process
Once your application is submitted to underwriting the entire approval process can take up to 3 weeks. After all underwriting conditions are met and your loan is approved, you will be “clear to close” your reverse mortgage. At you’ll just need schedule a date and location convenient to you with the title company for closing your reverse mortgage.
Overall the reverse mortgage provides many benefits, but the process can be time consuming. Many homeowners spend hours online researching the program, before making the first call. If your considering a reverse mortgage, call us today (561) 203-6772 to schedule a free consultation with our experts.