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Reverse Mortgage Steps
Peace of Mind Later in Life

Borrow against the equity in your home while you live in it.

Counseling

Counseling is federally required for all reverse mortgages.

Reverse mortgages are designed for an older audience who are often on fixed incomes and involves what is usually everyone’s most valuable asset—their home. A counseling session can take place either face-to-face or by telephone. We will provide you a list of counselors. Loan originators are not permitted to direct you to a specific counselor or agency. Counselors have been trained to deliver the required information either way. The session should generally last 90 minutes but can take longer as needed. You can invite any family or advisors you want.

Application, Fees, and Disclosure

If you decide to proceed with the loan, you now select a lender.

We will conduct a financial assessment to ensure you have the financial stability to continue paying your property taxes, homeowners insurance, homeowners association dues, and other property charges. We will then analyze all income sources – including pensions, Social Security, IRAs and 401(k) plans – as well as your credit history. We will look closely at how much money is left over after paying typical living expenses and decide whether to set funds aside to pay for future tax and insurance payments. If we determine that you won't be able to keep up with property taxes and hazard insurance payments, we are authorized to set aside a certain amount of funds from your loan to pay future charges. The amount set-aside will be based on the life expectancy of the youngest borrower.

Loan Processing and Underwriting

The lender orders an appraisal by a professional appraisal firm. It is paid for by the homeowner.

This determines the market value of the home. However, the final value is not established until the Loan Underwriter employed by the lender reviews the appraisal and approves it. After receiving all pertinent information from the homeowner and obtaining other required items, the loan package is submitted to the Loan Underwriter for final approval. It generally takes anyw