How Does A Reverse Mortgage Work?
I will be happy to meet with you at your convenience and review all the loans programs available to you. Usually, our first meeting will be about an hour, and feel free to ask your family or trusted advisor to join us if you’d like. This is a “get to know” each other session, and a chance to find out specifics about how a reverse mortgage works and what it can do for you. If you would like to make an appointment please don't hesitate to call me at: 719-520-3326.
8 Simple Steps to Get Your Reverse Mortgage
1. |
Initial Call for Information - Learn How a Reverse Mortgage Works |
| I will speak with you about the reverse options that are available to
you. Remember that reverse mortgages are based off of your age (and
spouse’s age),
the value of your home, and the current interest rates. At this time, I will set up a meeting with you (and your family members if you desire), to go over all the details involved with this loan, and to answer any questions you might have about how a reverse mortgage works. |
|
2. |
HUD/HECM Counseling |
| This is an education session to be sure that you completely understand the reverse mortgage and your options before you obtain the loan. The counseling is done by an approved agency, either face to face, or via phone. I will supply you with a list of approved agencies in Colorado. This is a mandatory requirement for all seniors who receive a reverse mortgage. There might be a charge for this counseling, depending on your financial status. After the approximate one hour session, you will receive a counseling certificate that needs to be signed and dated so that I may complete your loan application. | |
3. |
Application |
| I can take your reverse mortgage application prior to counseling, or after you have received counseling, but if taken prior to, I will hold the application until receipt of your signed and dated counseling certificate. This is an FHA/HUD requirement. I will personally go over all of the initial application and answer any questions you might have. | |
4. |
Appraisal |
| I will order an FHA appraisal on your home from one of our approved appraisers. The appraiser will contact you directly to make the appointment. In approximately a week after the appraiser has viewed your home, I will receive his completed appraisal evaluation. It is at this time, that if repairs are called for, we will discuss the various ways to handle this issue. Often times, a bid from a local, licensed, contractor will be sufficient to complete your reverse mortgage loan, and you will have approximately 6 months to get required repairs completed. REPAIRS, (if not structural, or hazardous) can be completed AFTER your reverse loan closes. | |
5. |
Processing Your Loan |
| Your reverse mortgage loan will be processed locally. I will be ordering your title work on your property, as well as in file credit report, and flood certificate. This is all required documentation by FHA/HUD to complete you loan. | |
6. |
Underwriting |
| Once I have received your appraisal, title work, credit and flood certificates, I will submit your loan to underwriting. The underwriter’s job is to make sure that the loan file conforms to all applicable FHA/HUD guidelines. Once completed, I am notified with a “clear to close”. | |
7. |
Closing |
| This is the final stage of the reverse mortgage process, and
the BEST!!! I will call you approximately a week before closing
to ask you, again, exactly how you would like to receive the funds that are available to
you. I will order the closing
package, and we will meet to sign all the final legal documents. After
the closing,
there is a three day right of recession mandated by the Federal
Government. What this means is that AFTER you have signed all the final
closing papers, you have the right to change your mind within a three day
period, no questions asked. After the full three days have passed, on the fourth business day the funds you requested are available to you… |
|
8. |
After Closing |
| With most all of the investors I am currently working with you will receive a monthly statement on your account. This will show you how your funds are being disbursed to you, or how your line of credit is growing etc. |