The Reverse Mortgage Process
1. Homeowner Becomes Aware
The 62 or older homeowner becomes aware of Reverse Mortgages and contacts their mortgage broker or Reverse Mortgage specialist.

2. Quote and Educate
The homeowner receives a quote and decides if they want to go forward with a Reverse Mortgage. If the homeowner decides to move forward with the loan, they will receive information as well documents that consists of a good faith estimate which the lender discloses to homeowner the estimated total cost of the loan . The senior should educate themselves on the program through AARP, NRMLA, NCOA, and HUD to make sure they are comfortable with the loan.

3. Application & Counseling
The homeowner completes the application for the Reverse Mortgage and decides what payment option they desire between line of credit, or lump sum or a combination of the two. The homeowner must provide the lender with information on the home such as copy of deed to home, and information on any existing mortgage, and also Social Security number and photo ID. The homeowner must receive a counseling certificate, which is provided by a approved HUD counseling agency, the counselor provides the homeowner with information regarding the Reverse Mortgage and determines whether the Homeowner is eligible for the loan.

4. Appraisal & Processing
The lender orders an appraisal on the home which is carried out by a 3rd party appraiser, who determines the value of the home. The homeowner will be contacted by a processor who will help with the acquisition of information and paper work to help with the loan.

5. Closing & Disbursement of Funds
The Homeowner has three business days after signing papers to cancel the loan. Upon expiration of this period, the funds are disbursed, all leans are paid off, and new lean is placed on the property. The senior homeowner can use the funds for any purpose they desire.

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