|
Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender.
Initial Discussion
The first thing we like to do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. We talk about the pros and cons, how it works, how much money you might receive and anything else you'd like to know about.
Qualifications
Unlike a traditional mortgage, there is no need for credit reports or employment. The only things we need to ascertain are that the borrower is over 62 years of age and that the property has sufficient equity above any existing mortgage(s).
Counseling
If you decide that a reverse mortgage is the right choice, you will receive counseling from an independent certified, HUD-approved counselor to make sure that you have had all your questions answered and that there has been no confusion. It's a protection device that the government has built into the process of obtaining a reverse mortgage.
|
Appraisal
Then we supply a list of appraisers to determine the objective market value of your home, and whether any repairs will be required to meet Federal
Housing Administration guidelines.
Underwriting
After the appraisal and any inspection reports, if required, we go through all the normal processing procedures that you might find in any mortgage.
Closing
The final step is the closing where you receive the money, or proceeds, from your reverse mortgage and your current loan is paid off. Then it's up to you: pay bills, fix up the house, help a family member, or use the money to enjoy your life, etcetera.
|
