The reverse mortgage process can be broken into 4 different stages, from the fact finding stage, HUD counseling process, application process and finally loan approval & closing.. Most applicants we work with have spent up to a year or more contemplating a reverse mortgage; how they work, can i lose my home or that a reverse is just a giant scam all together!
With the amount of conflicting information and opinions found on the internet today, the fact finding process can become very discouraging! To separate fact from fiction, we first offer our applicants a risk free reverse mortgage consultation focused on explaining and illustrating the different ways a reverse mortgage could work for your situation.
The Initial Consultation..
The 1st step in the process is our initial consultation, where we learn more about your situation. This complimentary consultation is strictly informational and can last a few hours, we encourage family members or heirs that may have questions attend this informative consultation. During the consultation our professionals will answer all your questions, explain in detail how the available programs work and also design multiple reverse mortgage scenarios for your situation that includes loan cost, structure, rates, fees, illustrations and eligible proceed..
HUD Approved Counseling Session..
After your initial consultation, you will have plenty of information to go over & review. If you decide to move forward and apply for a reverse mortgage, you will first need to attend a required HUD Counseling Session. The Department of Housing and Urban Development requires that applicants must 1st receive counseling from an independent 3rd party counseling agency before applying for a reverse mortgage. Your Reverse Mortgage Package given to you by your reverse mortgage professional will include a list of Approved Counseling Agencies. There is a 3rd party out of pocket fee involved, paid directly to the counseling agency. The session is available in many languages will usually last around 1 hour.
The Application Process..
After receiving your counseling certificate, you can then begin the application process for a reverse mortgage. To start this process, you will need to schedule a meeting with your reverse mortgage professional to begin the application process. During this time we will also begin ordering the required documentation needed for you file, such as an appraisal, title review and flood determination needed for the application.
During the application process your home will be appraised to assess its current market value. The amount you are eligible to receive is based on the home’s appraised value. A 3rd party appraiser will visit your home to assess the exterior, interior condition and value of recently sold properties in the area. Once your appraisal is completed, by law your reverse mortgage professional will provide you with a copy of the appraisal. Available loan proceeds may increase or decrease based on your home appraised value.
The Approval Process..
When your file is submitted to processing their maybe be conditions that must be met to approve your loan. We will be in contact with you throughout this process and may need additional documentation. After all underwriting conditions are met and your loan is approved, you will be clear to close. Your reverse mortgage professional will contact you with the news, and schedule a date and location convenient to you for closing. After all documents are signed at closing, you have a 3 days by law to cancel the loan. Once this 3 day period has cleared, you can receive the loan proceeds you requested at closing.
How do I schedule a Free Consultation ?
Our professionals will meet with you to develop a plan and design a reverse mortgage that meets your retirement needs or goals.. Contact us today to schedule a complimentary consultation at (561) 203-6772. From buying the perfect retirement home or tapping into home equity, we will help you get the most out of your reverse mortgage.