What to Expect When Applying for a Reverse Mortgage

If you have applied for a standard, forward real estate mortgage before, the process is very similar. We won’t ask for tax returns, and in most cases, even your FICO score isn’t important. You have been paying for your home for a number of years. Now it’s time for the home to pay for you.

We will need certain documents signed, and will need the other items listed below:

  • 2 months most recent bank statement (all pages)
  • Most recent mortgage statement (if any)
  • Property tax bill
  • Homeowner’s Insurance – declaration page
  • Social Security award letter (if applicable)
  • Paystubs, W-2, and/or any other document showing additional monthly income.

HECM Certification

In 2008 the FHA changed several aspects of how reverse mortgages were done. One change was adding the need for the borrower to listen to a class about how reverse mortgages work. They are separate firms, with no vested interest in your loan. They are there to give you, and others you trust who you would like to listen in, an overview of how HECM loans work, and to answer any questions you might have. Generally, these companies charge $150-$200 per person that will be on the loan. But some companies that are authorized to teach these classes have been given government funding and don’t charge you anything. We will do our best to locate a few choices that have government funds so you can do the class for free. Once complete, they will send your certificate by email or regular mail. All lenders need a copy of this certificate to proceed.

Initial Disclosures

Like any standard mortgage, you will receive an initial loan package with pages you need to sign, including an “Intent to Proceed”, which will allow us to begin the loan process.

Appraisal

As the property is making the payments, a current property value is critical in determining how much cash you can access.

Additional Documents

We do our best to keep the document requests to a minimum, but as the underwriter reviews our documents, they may ask for additional items.

Final CDs

Once the underwriter gives our loan final approval, we will generate a new set of disclosures with 100% accurate numbers for you to review and sign.

Closing with your Notary

After approval of the Final CD, we will set an appointment to have a Notary visit you (or you can meet with the Notary at a local Title Company office) with a formal copy of the final loan documents. Once signed, the Notary will register you in their book and the loan is complete.

72-Hour Right of Rescission

Even after you sign the final documents with the Notary, you have three days to think about it, in case you have a change of heart and do not wish to proceed. If you decide to continue, on that third day Escrow will wire transfer any money you are receiving into the bank account of your choice, or you could visit the Title/Escrow office and pick up a check.

Contact us for a formal quote.

Apply Now