If your a homeowners age 62 or older you can apply for a Reverse Mortgage
Some basic facts about Reverse Mortgages:
- Are available to homeowners age 62 or older
- Require No Monthly Principal and Interest Payments
- Payments are generally Tax-free and typically do not impact your benefits
- Do not change who owns your home—it’s still yours
- Are Federally insured and payments are guaranteed
- Have no restrictions on paying off at any time
- Allow you to sell your home at any time
- Let you keep the equity in your home when you sell or pay it off
- Can never leave you owing more than your home is worth
REVERSE MORTGAGES – STEP BY STEP PROCESS
First, you should know that you’ll never be left uncared for or having to figure things out for yourself – I will be there to assist you every step of the way. While all HECM reverse mortgages are the same, it’s the personal touch that matters. You need to know that I’ll provide you with the knowledge and guidance you need so that you may move forward comfortably, without stress or concern about arriving at a successful outcome, serving as your relentless advocate through-out the process of closing your reverse mortgage, and afterwards in the event that you have questions.
Step 1 - Initial Financial Assessment Review
Prior to completing the required telephone counseling (below), we need to evaluate your financial capacity to carry your on-going housing and other obligations. In this step, I will review the following information with you:
- Tax returns for the most recent 2-years
- Pension, Social Security, paystubs, and any other income
- Asset and Investment account statements (most recent)
- Credit Report (I will need your written authorization)
- Annual Real Estate taxes and Homeowners Insurance costs
- Size of your home
Step 2 - Complete the required telephone counseling
Thru a HUD-approved counseling service. The Reverse Mortgage Proposal provides a list of approved counseling agencies that you may select from. You will need to make the arrangements with the HUD counselor and schedule a time that is convenient for you. Please note that you will need to have the documentation listed above available to review with the counselor.
Step 3 - Sign the application documents.
We will meet to review and sign the application form. I am happy to meet with you at your home or trusted adviser’s offices if that is preferable to you. At that point, I will also need the following items:
- Birth certificate or passports to prove their age, and
- Government issued ID to prove identification, and
- Social Security or Medicare card to prove valid number, and
- A recent mortgage statement (if applicable)
- Copies of any bills to be paid at the time of closing
- Copy of your homeowners insurance binder
Step 4 - Have an appraisal completed
I will order this from an FHA approved appraiser. Please note that you will need to pay for the appraiser in advance by credit or debit card (estimated at $450). You do not have to do anything to prepare for the appraisal.
Step 5 - Obtain Title work from your desired attorney
Or, if you wish, I can recommend someone skilled in senior issues and reverse mortgages.
Step 6 - Loan is approved
This generally happens within three —four weeks of getting the signed application. Sometimes the lender will ask for additional information and I will work with you to provide this. After all conditions are satisfied, the loan is cleared to close and we can schedule a date / time / location convenient for you.
Step 7 - Closing Day!
This is the time when you will sign the final documents for your reverse mortgage. Since this is called a refinance, you have some special rights that give you 3-business days to make sure you are comfortable with the decision to take out the reverse mortgage and the terms included in the closing documents. If for any reason you decide to cancel, you may do so without cost or penalty. After the 3-days and if you do not cancel the mortgage, then the money is paid out to you in the manner you requested at closing.
From start to finish, it usually takes about 6-weeks to get all the way thru closing and funding of your Reverse Mortgage. If you have special circumstances that need faster service, I will do all that I can to expedited the application and closing.
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