Is A Reverse Mortgage Right For You?
If you are thinking about getting a reverse mortgage you’ve probably done a lot of research online. To get a good idea if a reverse mortgage is right for you it helps to see your numbers, possible scenarios, and have all your questions answered. That is why we recommend scheduling a free consultation.
During the consultation, we will discuss how a reverse mortgage works, your specific options, and answer all your questions. This free consultation is designed to be informational and can be done in person or over the phone. You will receive a personalized reverse mortgage quote package that includes estimated loan costs, rates, fees, and the potential proceeds you may qualify to receive.
HUD Counseling Session
The next step after your consultation is scheduling the required HUD Counseling Session with a HUD Approved Counseling Agency. The Department of Housing and Urban Development (HUD) requires that all reverse mortgage applicants receive HUD counseling from an independent 3rd party counseling agency before applying for a reverse mortgage. There is an out-of-pocket expense paid to the HUD counseling agency. This counseling session is available in many languages and may also be done in person or by phone.
Here you can find HUD.GOV’s list of Approved HUD Counseling Agencies.
Reverse Mortgage Application Process
After completing your HUD Counseling, you’ll receive a counseling certificate, which means you can now apply for a reverse mortgage! You’ll need to contact us to begin the application process. During this time, we will start ordering the required documentation needed for your reverse mortgages, such as your credit report, title review, flood determination, and any other required documents for the application.
During the application process, your home you will need to have your home appraised to assess its current market value, the amount you are eligible to receive is largely based on your home’s appraised value. To complete the appraisal a 3rd party appraiser will visit your home to make assessments to the exterior, interior condition, compare recently sold properties in the area, and other factors to come up with your homes assessed value. This process can take up to a week or more, and in some cases, a second appraisal can be required.
The Approval Process
Once your application is submitted to underwriting the entire approval process can take up to 3 weeks. After all underwriting conditions are met and your loan is approved, you will be “clear to close” your reverse mortgage. You’ll just need to schedule a date and location convenient to you with the title company for closing your reverse mortgage.
Overall, the reverse mortgage provides many benefits, but the process can be time-consuming. Many homeowners spend hours online researching the program, before making the first call. If you’re considering a reverse mortgage, call us today (562) 981-7700 to schedule a free consultation with our experts.
Stay in your home and own your home without ever making another monthly mortgage payment. Remember, like any homeowner, you are still responsible for taxes, insurance, and maintenance.
A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). Borrowers are responsible for paying property taxes and homeowner's insurance (which may be substantial). We don't establish an escrow account for the disbursement of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy the home as their primary residence and pay for ongoing maintenance; otherwise, the loan becomes due and payable. The loan also becomes due and payable when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes or insurance payments, or does not otherwise comply with the loan terms. These materials are not from HUD or FHA and were not approved by HUD or a government agency.