This is really an “education session” to be sure that you completely understand the reverse mortgage and your options before you obtain the loan. The counseling is done by an approved agency and there is not cost and no obligation. The counseling can be done over the phone or in person. As with many items connected with a reverse mortgage, it’s your choice. A counseling certificate will be mailed to your home. You’ll need to sign and date the certificate and we will collect it at the time of application since we need to send it along with the loan application package to the underwriter.
3) Application
Either prior to or after counseling has been completed, we will come to your home or you may come to our office for the application appointment. We will thoroughly explain all forms and of course answer any question you have. Once again, you may bring a family member or anyone else who is helping you with this transaction. Please have the items listed on our “Items Needed For Application” form photocopied so we may collect them at application. This will ensure a smooth process.
4) Appraisal
We will order an appraisal on your home from one of our approved appraisers. The appraiser will contact you directly to make the appointment. The appraiser will prepare the report and send it to our processor.
5) Title Work
At the same time the appraisal is being done, the title work is being completed by the title or escrow company. This is in preparation for the closing. The title company may call you with questions during the course of their work. Please provide any information they require as this will make for a smooth transaction. Of course, if you have questions, we are just a phone call away.
6) Underwriting
Once the appraisal, title work and any other necessary information is received, the processor will submit the loan to underwriting. The underwriter’s job is to make sure that the loan file conforms to all applicable guidelines. Once reviewed and approved, it’s time for……
7) Closing
The title representative will come to your home and conduct the closing. This is when the legal documents for the reverse mortgage are signed. The title representative will explain all forms and answer any questions you have. After the closing, there is a three day right of recession mandated by the Federal government. What this means to you is that on the 4th business day (Saturdays do count) after closing the funds you requested will be available to you.
8) After closing
We are here to answer your questions for as long as you have your reverse mortgage. You’ll receive periodic statements about your account showing the current balance, the interest rate in effect, and the amount of funds still available. There will be a customer service number that you may call, as well as other pertinent information about your loan.
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