The Reverse Mortgage Process
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Step 1. The Initial Reverse Mortgage Consultation
Either by phone or preferably in person, a reverse mortgage specialist will review the various loan options that you are qualified for. He or she will will go over the positives and negatives of each option as well as show you the various payment methods available to you under each option. At this point the application may also be taken.
Step 2. Counseling
Once you have decided to move forward with a reverse mortgage, the next step in the reverse mortgage process is for you to speak with a HUD qualified, independent counselor. This is a HUD requirement meant to ensure the senior is comfortable in their decision and that all questions have been answered. Additionally, the counseling session is free
Step 3. Processing
Once you have completed counseling and presented your reverse mortgage specialist with a signed copy of the certificate of completion, they will then order the appraisal, title work and FHA case number. Your reverse mortgage is then underwritten in the same fashion as any other mortgage. The main difference being that there are no income and assets qualifications and the credit requirement is minimal.
Step 4. Settlement
This is where all the final documents are signed and you receive the proceeds of your loan. Based on your choice at the beginning of the process, your proceeds could take the form of a lump sum payment, a monthly term payment, a monthly tenure payment, a line of credit or even a combination of two different ones.