Like any other real estate transaction, getting a reverse mortgage involves a number of steps designed to ensure you get right reverse mortgage for your situation. 

Here are the basic steps you can expect to go through when you apply for a reverse mortgage

1.       Initial Consultation

The first step is to talk to an advisor either over the phone or in person. During this meeting we will discuss the pros and cons of a reverse mortgage specific to you and your circumstance and details of the different reverse mortgage types available to you. We will also calculate the reverse mortgage size you qualify for under the different programs available. Once that consultation is held you then decide which reverse mortgage type you want, and if a reverse mortgage is right for you. We highly recommend taking this step even if you are only considering a reverse mortgage.

2.      Counseling

If you decide that a reverse mortgage is the right choice, you need to take 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. This is a required course for all HUD approved reverse mortgages designed ensure that you have a full understanding of the reverse mortgage and how it works. We can refer you to an independent counselor or you can look one up directly yourself.

3.       Sign Disclosures

Once the counseling is complete the next step is to sign loan disclosure forms. These forms may be signed in person or can be mailed to you. The disclosures are similar to conventional mortgage disclosures, but have been altered to match the terms of the specific loan you have chosen. 

4.      Appraisal

Once the disclosures are signed and returned, an appraisal will be ordered. Current guidelines require that appraisals be ordered through a 3^rd party appraisal management company.    In addition to appraising the value of your home, the appraiser addresses other guidelines required by the lender, such as property type, condition and so forth.

5.      Processing and Underwriting

The loan processing and approval process starts once the disclosures are signed. A processor will be assigned your file who specializes in reverse mortgage loan processing. This step typically takes 3-4 weeks.

6.      Closing

The final step of the program is the closing, or settlement. This is where you sign the final loan documents and receive the funds, or proceeds, from your reverse mortgage. 

Now it’s up to you: pay bills, fix up the house, or use the money to travel and enjoy your life!