The Reverse Mortgage Process
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As with any loan, there is a process that you must go through in order to find and get the right loan for you. As with any major purchase, the first step is to go shopping and find out what your options are.

In order to find the best type of reverse mortgage for you, spend some time shopping around. Compare different lenders and the options available. The more that you learn about reverse mortgages, the more educated your decision will be. If you do your homework, you will also know what questions to ask when you actually talk to a lender or reverse mortgage counselor. If you ask the right questions, you are more likely to find the best deal available for your situation.

Once you have decided on what type of reverse mortgage loan(s) you are interested in, it’s time to talk to a lender. You will probably want to meet with more than one lender before making your final decision. While there are rules that govern how reverse mortgages are handled, it still pays to find a lender that you are comfortable with. It’s also important to find a lender who specializes in reverse mortgages, and they will be better able to discuss the pros and cons of the different options and answer any questions you might have.

Once you have made your preliminary decision about the lender and kind of reverse mortgage that you want to go with, it is time for you to meet with a reverse mortgage counselor. This part of the process is a requirement, and it is also free. Your lender should refer you to a counselor who has been approved by HUD for counseling seniors about reverse mortgages. This is another chance for you to make certain that all of your questions have been thoroughly answered and that there has been no confusion. You should be able to walk away from your counseling session feeling confident that you know exactly what you are getting into with your reverse mortgage and that it is the right decision for you.

Once you have had your counseling session and decided to go ahead with your reverse mortgage, it is time for an appraisal of your home. The appraisal with determine the current objective value of your home if it was put on the market today. The appraiser will also make certain that there are no repairs necessary for your home to meet the guidelines required by the Federal Housing Administration.

Next comes the home inspections. This is a requirement designed to make certain that your home is structurally sound. The inspector will look for hidden damage such as termites or dry rot.

After that, it’s time to actually begin processing your mortgage. This is when you will be required to submit certain paperwork and complete and sign your final application. This is also when the credit check and other processing steps will be completed. Be prepared for this processing to take up to a month.
Then, the final step, as with any home loan, is your closing. This is when you finalize the paperwork and actually receive, or begin to receive, the money from your reverse mortgage. After this step, it’s up to you!

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