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.
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