The Process of Getting Your Reverse Mortgage
Like any mortgage, a Reverse Mortgage involves a number of steps. A Reverse Mortgage takes longer to complete than a traditional mortgage due to the regulations designed to protect Seniors.
We suggest you first meet with a Reverse Mortgage Specialists before going to Counseling. Counseling is product specific, and if you have Counseling for a different loan product then the one you choose, you will have to do it again.
The steps you can expect to go through in getting your Reverse Mortgage are:
1. Initial Conversation with a Reverse Mortgage Specialist
First, we like to have a conversation with you to establish if a Reverse Mortgage is right for you or if another option may be better suited. Talk about your situation, plans, and goals, how much money you may receive, etc. The Reverse Mortgage Specialist will answer any questions you may have.
If you would like to proceed, we will schedule an appointment in your home and inform you of what documents you will need.
2. Application Meeting with a Reverse Mortgage Specialist
In this meeting we will discuss how Reverse Mortgages work, your figures, the process, Counseling, how the loan is paid off, etc., will be explained to you. All your questions and concerns will be addressed. If you have any advisors, we will also forward your information to them as well.
If you decide to continue, your application will be taken. This does not commit you to getting the loan. It is preferable to apply as: we have your information on file to answer any questions you or your advisors may have. On the HECM program there is loan amount protection for about 3 months from the application date. An increase in the rates while you decide would decrease your loan amount, it is therefore beneficial to sign an application, without commitment, as soon as possible.
You can change your mind or change your payment plan at anytime until your closing.
You will be given copies of all application documents as well as brochures, copies of the notes, mortgage, and figures, for you and your advisors to study.
3. Counseling
Your will be given a list of Counselors at your application meeting. Counseling is mandatory as a protection for Seniors. Counseling is given of approved third parties to confirm you know the facts about Reverse Mortgages and about any other options.
Counseling is product specific, so you must make sure you take the correct Counseling, or you will have to repeat the process.
Counseling is given at no cost to you and does not commit you to getting the loan.
By law, Mortgage Trust Group cannot begin processing your loan until we have your original Counseling Certificate in hand.
4. Processing - Appraisal, Title, and Inspections
Should you decide to continue, once we have your original Counseling Certificate in hand we will begin processing your loan.
The Appraiser will contact you to schedule a walk through your house to determine its value, if any repairs are necessary to meet loan guidelines and if a termite inspection is required.
A title examination will be ordered as well all normal processing procedures to prepare your loan for underwriting.
5. Underwriting
Once your loan application package is complete it will be underwritten to confirm it meets all loan guidelines and regulations.
6. Closing
Once your loan is finalized and your wishes are confirmed you will have a closing to sign all the loan documents. These documents will be recorded after the legal three day recession period.
At closing you can elect to have your payments directly deposited in your checking or savings account. If not, checks will be mailed to you. You can elect to have your payments directly deposited at anytime.
7. Enjoy Life
Now you have the money to pay your bills, improve your house, help family members, or buy a second home, and just enjoy life with the peace of mind of not having a mortgage payment.
These are your well deserved golden years.
Mortgage Trust Group, Inc.
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