HOW THE PROCESS WORKS
Many elderly homeowners reach the point where they know they want a reverse mortgage, but don't know how to go about acquiring one or how long it will take.
These simple steps are a part of the process that every borrower has to take to get a reverse mortgage.
Step 1: Reverse Mortgage Education, Awareness and Selection
You've done your homework on what a reverse mortgage is and have decided that it's the right loan for you. Now comes the question of what to do next in order to get the loan underway. It all starts with picking a knowledgeable professional to originate your loan. Meeting with a qualified Loan Officer at Simple Reverse is key. This is where you learn about your specific numbers, what you qualify for, and receive an analysis of your particular situation.
Step 2: Attend Required Reverse Mortgage Counseling
You will be required by law for counseling from an independent third-party agency that has been approved by HUD. Your lender cannot begin the processing of the file without a Certificate signed by all borrowers and the Counselor. Most borrowers choose to take the counseling over the phone, but counseling is available face to face and in several foreign languages. Typically this fee is paid by the borrower. Consult with your Reverse Mortgage Loan Originator and make sure you complete this as soon as possible.
Step 3. Reverse Mortgage Application & Processing
Our reverse mortgage professionals may meet with you at our office, your home, or by phone to help guide you through the application. There are a several tasks required to complete the application paperwork and processing of your loan:
- Perform a financial review of each applicant's credit history, property tax payments and other credit factors that will be evaluated.
- Coordinate for an appraiser to go out to your home. The appraiser will follow a process to determine the value of your home.
- Open escrow to order a title report and ensure that there are no Federal or State tax liens on the property. It usually takes 1-2 weeks to receive a completed appraisal and title report.
- Submit the loan and documentation for review and approval from the underwriter (the person who approves the loan).
Step 4. Loan Closing & Fund Disbursement
If your loan has been approved by underwriting we will contact you to arrange for the signing of your final loan documents. At this time we will confirm your payment plan and how you will receive your money. Once you've signed the closing documents, you have three business days to cancel the loan if you should choose to do so. After the cancellation (rescission) period has passed, your funds are distributed based on the payment option you chose at closing. HECM for Purchase loans may have a different rescission period.