Reverse Mortgage Loan Process

//Reverse Mortgage Loan Process

Reverse Mortgage Loan Process

A reverse mortgage loan is a loan designed to help homeowners over the age of 62 with their finances, whether they need extra money to pay the bills or to simply improve their quality of life. In essence, instead of making mortgage payments every month, your lender will pay you money every month. This money is in the form of a loan against the equity that you have in your house. If you’re interested in applying for a reverse mortgage loan, the following is the process that you’ll have to go through.

  • Speak with a specialist – A reverse mortgage loan specialist will be able to tell you whether or not you qualify and what the terms of your mortgage will be. A good mortgage loan specialist will explain the ins and outs of a reverse mortgage loan so that you fully understand the loan you’re taking out and so that you won’t be confused by any of the terms.
  • Attend counseling – In order to qualify for a reverse mortgage loan, you will be required to receive third-party counseling. This is a requirement established by the U.S. Department of Housing and Urban Development (HUD) to ensure that applicants fully understand the options available to them and the details of a reverse mortgage loan. A reverse mortgage loan specialist will be able to help you find a local counselor. Generally speaking, you can receive your counseling over the phone.
  • Get your home appraised – Once you have a counseling certificate, you’ll need to get your house appraised by an independent FHA approved appraiser before your loan can move to the underwriting process. During this process, all of your documents will be reviewed and finalized.
  • Closing the mortgage loan – Once the house has been appraised and all the documents have been reviewed and approved, you’ll need to sign the final contract. Once you close, you will have a period of three days during which you can cancel the transaction if you have changed your mind. Once those three days are up, your funds will begin to be disbursed to you.

Keep in mind that once you begin receiving payments, you’ll still be responsible for taxes, insurance and regular maintenance. The house on which you’ve taken out your reverse mortgage loan on will need to be your primary residence to continue receiving payments. For more information about applying for a reverse mortgage loan, be sure to contact us at Alliance Mortgage Group today.

2019-04-03T17:39:44+00:00 May 11th, 2018|Reverse Mortgages|