Here at Reverse Loan Solutions, we do our best to make the reverse mortgage process as seamless, clear, and convenient as possible for our clients. A large part of the reverse mortgage process involves making sure that customers fully understand reverse mortgage facts so that they can make informed decisions. What follows below is a description of the different steps in the reverse mortgage loan process as well as other important things to understand about the reverse mortgage process.
The Reverse Mortgage Process: The Estimate and Counseling
Firstly, we will discuss your individual needs and get an idea of your goals. Once we know where you are financially and where you would like to be, we can provide a loan estimate. Once you have your loan estimate, we encourage you to review it with your family and/or advisors for an outside perspective and to ensure everyone understands what you are trying to achieve.
Secondly, the Department of Housing & Urban Development (HUD) has made it mandatory for a 3rd party counseling session to take place at the onset of the reverse mortgage process. During this step, comprehensive information is provided by someone from an independent housing counseling agency of your choosing. You can ask this counselor anything about reverse mortgage facts, procedures, requirements, benefits, and more. They will provide you with a certificate of completion allowing you to apply for a reverse mortgage.
The Reverse Mortgage Process: What Happens After Counseling?
- Step Three: The Application – Your counseling certificate of completion will allow us to begin the application process. We will provide you with an application and a clear set of required documents we will need to begin your loan. If you have any questions at any point, please let us know so that we can provide the information you need to feel comfortable. If you change your mind, you are free to cancel the application process at any time.
- Step Four: Appraisal – Upon completion of your application and collection of your documents, we will order an appraisal of your home from our Appraisal Management Company. The appraisal company will select an appraiser local to your area to determine the fair market value of your home. We use this value to calculate your loan amount.
- Step Five: Underwriting and Approval – The next step is to have an underwriter go over the application and appraisal to make sure that everything is in order. The underwriter will issue a loan approval or denial based on the documents collected. They also may require additional information to approve the loan.
- Step Six: Closing – Upon approval, a closing agent will get in touch with you, so that you can review and then sign the closing documents. An important reverse mortgage fact that you should keep in mind, is that for the next three days, you will still have the right to cancel the process with no penalty. If you don’t cancel, your proceeds will be dispersed to you as selected.
Contact Us Today To Apply For Your Reverse Mortgage
If you would like personalized help with your decision-making process, get in touch with us today! Our reverse mortgage experts would be happy to answer any of your questions regarding reverse mortgage loan information and the process.