Reverse Mortgages: what are the steps?

The following has been provided by Judy Schwartz, an expert on reverse mortgages:  http://www.reversemortgagesonly.com

Thank you Judy for the great information.

If you’d like to explore if a reverse mortgage is right for you or your parent/s please get in touch with me &/or Judy.

Reverse Mortgages: what are the steps?

While there is some flexibility about the sequence of events, there are also rules that dictate what steps must be completed before other actions.

A simplified listing of the steps follows:

-Meet with a Reverse Mortgage loan advisor to get an overview and determine if you qualify for a Reverse Mortgage. Review and narrow choices for the lenders’ loans that may be best

for your specific situation. Be sure to invite family members or trusted advisors who you might like to include in the meeting.

– Attend independent counseling (and be sure to obtain the ORIGINAL Counseling Certificate)

– Complete a loan application, providing the necessary supporting documentation (like photo ID, proof of Social Security Number, etc) that will be required for steps that follow.

– Be available to meet with the appraiser who will visit your home (this step cannot take place until your loan advisor obtains an “FHA Case Number”.) The appraiser will briefly measure and

photograph your home and get an overview of your neighborhood. Most of the appraiser’s work will later be done at his home office where he/she gathers information about similar properties in

your neighborhood.

– Await updates from your loan advisor as he/she gathers information and submit the loan to the lender for review and underwriting. This process may involve providing clarification

of information provided by you or providing additionally requested information.

– Upon learning that you lean has been approved or “cleared for close’, work with your loan advisor to establish a signing/closing date. For this step, you will need to confirm the amount of

monies to be drawn at close, if you have opted for an initial cash withdraw. The step involves the coordination of 5 different parties – you, the loan originator, the lender, the escrow company and

an independent notary, so flexibility is important.

– Depending on your state, you may then enter the “3-day right of rescission period”, a time during which you may opt to discontinue with the loan process, should you determine a Reverse

Mortgage is not right for you. Otherwise, your loan will be “closed” and “funded” on the business day following the end of the 3-day period.

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