The Process
Understanding the HECM / Reverse Mortgage Loan Application Process
Awareness
You may have heard about the reverse mortgage loan on television, radio, the internet, through a mailer, or through your own study.
Education
Meeting with a qualified Mortgage Loan Originator is essential. This is where you will learn about your exact numbers, what you may be eligible for, and an analysis of your personal situation.
Counseling
All reverse mortgage applicants must get counseling from an independent third-party, HUD-approved counseling provider. The borrower is frequently responsible for paying this fee. Consult with your Reverse Mortgage Loan Originator and finish this as quickly as possible. Counseling can often be performed over the phone. You will be given two certificates, one for you to retain and one to mail to our headquarters.
Action / Application
Consult with your Mortgage Loan Originator to determine whether a reverse mortgage is best for you. To assist you with the application, our reverse mortgage consultants may meet with you at our office, your home, or over the phone. You will be given a comprehensive copy of ALL papers to discuss with your trusted financial advisors (i.e. CPA or attorney) or family member(s).
Financial Assessment
To help ensure the HECM loan's long-term success, HUD requires a financial review of each applicant's credit history, property tax payments, and other credit factors that will be evaluated to determine a borrower's willingness and financial capacity to meet the loan's ongoing obligations.
The Appraisal
Upon receiving your HUD counseling certificate, we will contact you to arrange for an appraisal of your property. The borrower pays for the appraisal. A comprehensive FHA appraisal is used for reverse mortgages. What comparable properties in your neighborhood have recently sold for determines the value of your property.
Processing
The lender will begin to process your paperwork. The appraisal, title report, and checking the balance of any liens or mortgages to be paid are all part of this process. At this point, income verification and other credit criteria are also gathered. During this time, we will keep in touch on a regular basis.
Underwriting
When the processing and documentation are finished, we will send your file to the loan underwriter to see whether the loan will be authorized, and we will strive to satisfy any conditions/requirements needed to conclude the transaction.
Closing & Funds Disbursed
Once an underwriter approves your loan, we will contact you to arrange for the signing of your final loan documentation. We will confirm your payment plan or partial lump sum (how you want to receive your money) at this time. If you desire to cancel the loan after signing the closing documents, you have three business days to do so. After the cancellation (rescission) period has expired, your money is divided in accordance with the payment method you selected at the time of closing. There is no rescission period for HECM purchase loans. For further information, see HECM Purchase Guidelines for more informatoin.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant, or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
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Mortgage Specialists
NMLS #350697
8050 Florence Ave. Suite 210
Downey, CA 90240
Phone: (949) 990-3185
Work Phone: {949) 990-3185
Cell Phone: (949) 990-3185
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