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Underwriting

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.

Appraisal

Once all necessary documents have been received, the lender then asks a professional appraisal firm to determine the current market value of the home. However, this value is not final until it has been approved by the lender’s Loan Underwriter, who will also receive the loan package containing all information in the application.

The Loan Underwriter generally takes 1-5 business days to underwrite a loan, during which all information submitted is verified and that all loan details comply with applicable laws and regulations.

Afterwards, the final home value is determined, along with any necessary repairs and home inspections, and the loan may now proceed to closing.

Home Inspection and Repairs

Because your home is used as collateral for the reverse mortgage loan, it must meet the minimum living standards set by HUD. The lender will order a home inspection to determine whether repairs are required. If so, the lender will set aside a portion of the loan’s proceeds to pay for repairs, though you will be the one responsible for hiring a contractor to make the indicated repairs.

Borrowers will have one year starting from the loan closing date to get the repairs finished. If not, payments from the loan may be suspended until repairs are completed, or the loan may default and become due and payable.

Next step: Closing


Questions?

Ask our reverse mortgage experts to receive specific answers as well as qualified financial advice. You may also visit our FAQ to check whether we’ve already covered your question.

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