Steps in Getting a Reverse Mortgage
Discover each step in the application process and understand the details. This way, there won’t be any surprises when you apply.
We outline the general steps in applying for and getting a reverse mortgage below. You can read more information about each step by going to its corresponding page.
You have probably heard about reverse mortgage from the news, from an ad or even from a friend. While you may have gotten a general idea of how a reverse mortgage works, you will need to look for more information if you’re considering applying for one.
Educate yourself on how a reverse mortgage works to be able to determine whether getting one will be a smart choice for you.
Counseling is required for all individuals applying for a reverse mortgage. It’s necessary to receive expert advice from licensed counselors because the borrower will be involving their most valuable property, their primary home, in the transaction.
Find out what to expect in your counseling session, and how to ensure that you receive all the essential information you need to know about reverse mortgages.
Applying for a reverse mortgage loan generally involves providing personal and financial information to your lender of choice, who will then determine whether you are eligible or not. There are several fees that you may be charged with during the application process, but some can be paid with proceeds from the loan.
Familiarize yourself with the most common fees involved in applying for a reverse mortgage.
Once you’ve submitted the required information, the lender then processes your application, which includes verifying your information, appraising the current market value of your home, and inspecting whether repairs to the home are needed.
Understand the details of the underwriting process and be aware of what happens during and after the home inspection.
All details of the reverse mortgage loan are finalized during closing. After the loan has been approved, the final figures and options such as the borrower’s preferred payment plan are prepared, and both parties then meet to sign the agreement.
Learn more about what’s involved in the closing process, including costs, withdrawal limits, and settling mandatory obligations such as an existing mortgage.
Disbursement begins three days after the documents have been signed, during which the borrower can cancel the loan for any reason. Once this period is over, you can then receive loan funds in the payment plan you chose.
Examine the last few details in receiving your reverse mortgage proceeds and be aware of issues that may happen during the life of the loan.
Next topic: Settling a Reverse Mortgage Account