Application

The smartest thing to do when going into a reverse mortgage is to do as much research as possible by going on sites like this. Deciding to go forward with a reverse mortgage is the longest stage of the reverse mortgage process. After that, an average application only takes 30 to 45 days start to finish.

Applying

The application has all the basic information needed including reverse mortgage fees, interest rates and loan amounts for the applicant to look over. The application is not a contract and can be canceled at any time until 3 days after the closing.

Counseling

Counseling is mandatory by HUD and is required to be conducted by a HUD approved agency. The HECM Counseling Certificate proves that counseling has been completed and is mailed to the applicant after completing the counseling with a HUD approved agency.

Appraisal

The appraisal is significant because it determines what the home’s market value is. The appraisal influences how much money the applicant can take out of a reverse mortgage. The FHA requires that the appraisal be conducted by one of their approved appraisers with the strict FHA documents.

Underwriting

The lender will conduct a title search and purchase title insurance to confirm that the applicant legally owns the property. They must also work with the applicant to clear up any issues with trust, unpaid liens and bankruptcies. When the underwriting has been completed, the application status will change to a “clear to close” and a closing date can be set.

Closing

At the closing, an attorney or notary must be present as the applicant signs the closing documents. The applicant should use this time to review the paperwork to look over the amounts, interest rates, fees and loans. After signing the application, it starts the three day “right of rescission” period where the applicant can still cancel their application without any penalty. After these three days, the title company will overnight a check to the applicant.