Five Step Reverse Mortgage Application
1. Application
The consumer fills out application for reverse mortgage with the lender, and selects the product and payment options:
- fixed monthly payments for life
- fixed monthly payments for finite period
- lump sum payment
- combination of monthly payments and line of credit
2. Counseling
Reverse mortgage counseling is a mandatory part of the reverse mortgage application process and is typically completed just before or after completing an application for a reverse mortgage. Reverse mortgage counseling can be done over the phone with one of the national counseling agencies or it can be done face-to-face with a regional agency.
3. Appraisal
An appraisal is ordered through a certified appraisal management company (AMC). The appraiser schedules a time at your convenience to inspect the property. The appraiser completes the report then sends it to the AMC, which in turn sends it to us.
4. Processing and Underwriting
We order the title work, lien payoffs, etc. Package the application, counseling, and appraisal and send to the lender for conditional approval.
5. Closing
Upon completion of the conditions the loan is ready to close. All reverse mortgages have a 3 day right of recission. You will have 3 days after the signing to change your mind and close the loan. After the recission period, funds are dispersed to the method you disclosed at the closing.