How the Reverse Mortgage Process Works
Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender.
Here are the steps you can expect to go through when you apply for your reverse mortgage:
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. Then you decide whether you want to take the next step and we provide you with an estimate of funds available.
If you decide that a reverse mortgage is the right choice, you receive free independent counseling from a certified, HUD-approved counselor to make sure that you have had all your questions answered and that there’s been no confusion. A list of available counselors is available from me for your use. It’s a protection device that the government has built into the process of obtaining a reverse mortgage.
Then we arrange for an appraisal to determine the objective market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines.
In many cases an inspection is required to make sure that the home is structurally sound and that there’s no extensive termite or dry rot damage. Sometimes repairs may be required and the costs can be rolled into your reverse mortgage.
After the appraisal and inspection reports come in we go through all the normal processing procedures that you might find in any mortgage.
The final step is the closing where you receive the money, or proceeds, from your reverse mortgage. You can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit.
If you are looking into a reverse mortgage , contact our specialists at iReverse Home Loans. We have helped many seniors find peace of mind in their retirement. Call 800-486-8786 ext 813. In The Villages, Florida.