Processing Your Reverse Mortgage ............................................................................................................................................ There are set rules that regulate how all reverse mortgages are processed. The Federal Government is involved in monitoring this process. All interest rates, loan terms and loan amounts are determined using a standard formula. The origination fees for reverse mortgages are capped, insuring that your reverse mortgage is safe and secure.
Once you decide that you are interested in a reverse mortgage, there are steps that you will go through as your reverse mortgage is processed. It helps to be aware of and understand these steps in advance.
Compare the reverse mortgage lenders and products available to determine which one is best for you. Hopefully you have information on each product and lender you have talked to in writing and can use this to help you make the best decision.
Use a Reverse Mortgage Calculator, found on most reverse mortgage websites or available through the lender you choose. This will enable you to determine how much money will be available to you.
Complete a reverse mortgage application. Once this has been signed and you receive your copy of the application, you will receive disclosure forms. One of these should be a TALC, the Total Annual Loan Cost disclosure, that is required by the Federal Reserve Board. This will show the total cost over the lifetime of the loan. You should be fully aware before you sign anything of all costs that will be involved with your reverse mortgage.
Call and meet with a HUD approved counselor for your free required consultation. This gives you an impartial expert who can go over this paperwork with you, answer any questions that you still have, and offer alternatives that you may not be aware of. This session can take place in person or over the phone, but it is important that you have read through all of the related documents first and have them available to refer to during your session.
If you decide to pursue the reverse mortgage you will receive a counseling completion certificate that you must sign and give to your lender.
Next, you will need to have an appraisal and inspection of your home. The lender will also need your title and a credit check. This should all be handled by your lender for you.
Wait for your paperwork to be processed. Be patient, as it usually takes approximately 30 days for the entire reverse mortgage application to be processes. Your lender should keep you posted on how the application is progressing.
Once your reverse mortgage is approved, there will be the closing where the details are finalized, the numbers reviewed and the final paperwork signed. If you have decided on a lump sum disbursement, you may receive your money at this meeting.
Now you can relax and enjoy the rest of your life knowing that your home is safe and you are taking full advantage of your greatest investment – your home.
