These basic steps answer your How do I Apply questions.
Your Application
Your application begins the process with the lender. It specifies fees, interest rates, loan amounts, and more.
Documentation
At this point you will begin collecting the documents required to be approved for the reverse mortgage. These may include such things as: mortgage statements, homeowners insurance, survey of your home, bank statements, ID’s, paystubs or other proof of income and tax returns.
Reverse Mortgage Counseling
Your lender is not allowed to proceed until you complete mandatory counseling with a HUD-approved counselor. List of approved agencies are available from the lender or online at www.hud.gov.
The Appraisal
In order to proceed, you will need to know the market value of your property through an FHA-approved appraisal that the lender will order.
Underwriting
For underwriting, legal ownership is confirmed in a title search. If someone remains on the title that no longer lives in the home or is deceased, additional paperwork may be required to clear title. The underwriter will also review the appraisal, the financial assessment and ensure the loan meets FHA guidelines. (this is not a complete list of everything the Underwriter will do.)
Closing
At closing, all aspects of the loan are reviewed and signatures obtained on final loan documents with a notary and after a three day waiting period you typically will receive the money, or proceeds, from your reverse mortgage. On a Purchase, the loan may fund the same day. On a Refinance, you can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit. Then it’s up to you: pay bills, fix up the house, help a family member, or use the money to enjoy your life.
