Obtaining A Reverse Mortgage: The Necessary Steps
Reverse mortgages have helped many of retirees strengthen their financial footing while remaining in their homes. To help you acquire the best possible terms on your Reverse Mortgage, Guarantee Mortgage streamlines the process. We'll be available to answer any questions you have and work with you to find a loan that meets your needs. Because we know how challenging it may be to make a decision like this, we encourage you to consult with those you trust the most, such as family, friends, an attorney, a financial advisor, a tax specialist, or anyone else you deem qualified. The steps outlined below will help you have a better grasp on the entire procedure of applying for a reverse mortgage.
Study And Teaching
If you get in touch with one of our knowledgeable Reverse Mortgage Specialists, we can create a comparison of several reverse mortgage packages that are specifically designed for your situation. During your scheduled session, we'll help you weigh all of the possibilities.
The National Reverse Mortgage Lenders Association (NRMLA) is the "national voice and conscience" of the reverse mortgage business and a great resource for further information. You may find them at http://www.reversemortgage.org.
Another great source for anyone interested in this field is the United States Department of Housing and Urban Development (HUD), which may be found online at http://www.hud.gov.
Counseling
When you have completed your research and have decided that a Reverse Mortgage is right for you, the next step is to attend counseling. It is mandatory to seek counseling, however we see this more as a teaching opportunity and a way to double-check your results. The average price of a session of this mandatory service is $125. The counseling organization may be able to forego this cost if sufficient federal and state funding is made available. A session can last anywhere from one to two hours and take place over the phone, although in-person sessions are also available.
Don't Forget To Fill Out The Application!
After you have completed Reverse Mortgage counseling, you may schedule an appointment with one of our trained Reverse Mortgage Specialists who will assist you in completing the necessary paperwork. In any case, a Reverse Mortgage Specialist is available to help you fill out the application in person or through the mail.
Value And Escrow
After we get your signed and dated counseling certificate and complete the application process, we will schedule a visit from an appraiser to evaluate your home. The appraiser will apply a formula to figure out how much your house is worth. We also order a title report and verify that no federal or state tax liens exist on the property at this time before opening escrow. It takes around two weeks for a full assessment and title report to come.
Subsidizing
Once we've received all preliminary reports, inspection reports, and checked the completeness and compliance of the loan package, we send it to the underwriter for review and approval (the person who approves the loan). The underwriter then does an analysis and may request further papers.
Closing
After your loan has been approved, we'll set up a signing appointment at the Title Company or have a Mobile Notary come to you. In all, signing all of the necessary paperwork for a loan takes around an hour. Once the documents have been signed and notarized, they will be sent back to Guarantee Mortgage to be processed for funding.
Disbursement
The borrower has the option to cancel the refinancing loan within three days. After the first "waiting" period of three days, the funds will be distributed and recorded with your County. Loans for purchases are often finalized and funded in as little as two working days.
Homeowners 62 and older who have equity in their homes may be eligible for a reverse mortgage loan. Debts can be put off until the borrower dies, sells their home, or relocates. However, homeowners are still accountable for a variety of expenses, including but not limited to tax payments, insurance premiums, and routine maintenance. If these services aren't paid for, it might cause a default on the loan, which could lead to foreclosure. Inquire with your loan officer about the origination fee and monthly servicing premium for an FHA-insured reverse mortgage. None of these materials have been approved by HUD, the FHA, or any other government agency.