You’ve heard about the Home Equity Conversion Mortgage (HECM) program and have done some preliminary investigation on reverse mortgages.
Meeting with a qualified reverse mortgage professional is vital. He or she will be able to give you information about your specific numbers, what you qualify for and an analysis of your unique situation.
Counseling is required from an independent third party, HUD-approved counselor, for all reverse mortgage borrowers. We will provide you with a list of approved counselors at your first appointment. Often you are able to complete counseling over the telephone. You’ll keep one certificate, and we will keep a copy in your file.
After reviewing your personalized illustration and obtaining counseling, our reverse mortgage specialist can meet with you at our office, or your home, and help guide you through the application. We will give you a complete copy of ALL the documents for you and your trusted advisors or family member(s) to review.
To help ensure the long-term success of the HECM loan, HUD requires a review of each applicant’s credit history, property tax payments and other credit factors. These will be evaluated to measure a borrower’s willingness and financial capacity to meet the ongoing obligations of the loan, such as property tax and home owner’s insurance†.
Once you’ve received your HUD counseling certificate, we’ll help you to coordinate with an FHA-certified appraiser to arrange for an appraisal of your property. Your home’s appraised value will be based on what comparable properties in your neighborhood have sold for recently.
Now we will begin to process your paperwork. This includes acquiring the appraisal and title report, checking the balance of any liens/mortgages to be paid, obtaining verification of income, and assessing other credit factors. We will be in contact regularly during this stage.
After completing the processing and paperwork, we forward your file to the loan underwriter for final approval where will work to satisfy any remaining conditions or requirements needed to close the loan.
Closing & funds disbursed:
Your loan has been approved by underwriting! We will now contact you to arrange for the signing of your final loan documents. At this time, we will confirm your how you want to receive your money (cash, monthly payments, line of credit). You have three business days to cancel the loan after the date you sign, if you should choose to do so. After the cancellation (rescission) period has passed, your funds are distributed based on the payment option chosen at closing.
†Courtesy of Reverse Focus, Inc, ©2016. All rights reserved.