The Reverse Mortgage Process
growing number of seniors are turning to reverse mortgages to ease
their financial worries. These flexible loans are secured by the equity
you have in your home, and do not have to be paid back until you move
out, sell out, or pass away. There are several different ways you can
choose to receive the proceeds, and they can be used in any manner you
a traditional mortgage has certain steps you must go through before you
get the money to buy your home, the reverse mortgage has steps you must
go through in order to borrow against your home equity. Here is an
overview of what is involved in obtaining a reverse mortgage.
- The Learning Process Before
trying to get a reverse mortgage, it is important to learn as much as
possible about them. There is lots of information about reverse
mortgages available online and in print. A mortgage professional can
give you additional information and help you decide whether a reverse
mortgage is something you would like to pursue further.
- Counseling Depending
on the type of reverse mortgage you are considering, the government may
require you to receive counseling before going further. If so, the
counseling must be done by a HUD-approved counseling agency. The
counselor will go over the features and requirements of a reverse
mortgage, answer any questions you may have, and discuss alternatives
to a reverse mortgage with you.
- Application and Appraisal After
counseling, you are ready to begin the application process. You will
fill out the necessary forms and pay for an appraisal of your home. At
this point you will need to bring in identification, the deed to your
home, information about any existing mortgages, and other items needed
to process your loan.
Most lenders will require an inspection to ensure that the home does
not have structural damage or problems that could cause said damage. If
reparable problems are found, you must have them fixed.
At this point, title work and lien payoffs are taken care of. The final
paperwork is drawn up in preparation for the next and final step.
Once all final approvals are made, you are ready to close. The lender
schedules a time for you to complete the final paperwork. Closing costs
are usually financed into the loan, so you probably wont owe anything
at this time. Once all papers are signed and everything is in order,
you receive your lump sum, access to your line of credit, or a schedule
of monthly payments.
steps involved in obtaining a reverse mortgage are similar to those
involved in getting a regular mortgage. But the results are much
different. Instead of incurring a new monthly payment, you get money to
help you alleviate other financial burdens or make needed purchases or
you would like more information about the reverse mortgage process and
how it can help you live out your retirement without the stress of
financial burdens please call me or one of my team members at
877-787-1003 or send an email here: email@example.com
will be happy to provide a complete complimentary analysis of the
amount of money you could expect to receive from the best available
James Barath, CMA, CMPS