On the Path to a Reverse Mortgage Loan? These are the Steps you can Expect.
This reverse application steps list is meant to help borrowers set their expectations of the reverse mortgage loan process. Whether you’re actively considering a reverse mortgage loan as a solution to immediate financial challenges or as part of their retirement plan, we encourage them to review these steps in order to prepare themselves for the journey ahead.
If you are interested, give us a call at: (800) 779-1020 for a confidential consultation or simply use our reverse mortgage calculator to get an instant estimate of loan proceeds available if you do qualify!
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Oregon homeowners, get started today to see how much you may qualify for!
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By submitting this estimate request form, I authorize HighTechLending doing business as Golden Heritage Financial to contact me to discuss the information submitted on the form in order to provide information about the HECM loan product, answer any questions you may have, help determine your qualification for the HECM reverse mortgage and if you’re interested, help you apply for the loan, even if the telephone number provided is currently listed on a corporate, state, and/or federal Do-Not-Call list(s). I understand that I am not required to give my consent as a condition of purchasing any goods or services from HighTechLending doing business as Golden Heritage Financial. I may revoke my consent at any time by contacting Samy Khoury at skhoury@hightechlending.com.
Important Disclosure
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
- The loan balance grows over time and interest is charged on the outstanding balance
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.
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Typical Steps on the Path to a HECM Reverse Mortgage Loan:
While the following reverse application steps represent the loan process most borrowers should expect, it’s also worth noting that not every journey looks exactly the same, due to individual circumstances. Note: Not all applicants qualify for HECM loans, the steps below are for qualified borrowers only.
Reverse Application Steps 1 – 4
Step 1. Explore Your Reverse Mortgage Loan Options
With different types of reverse mortgage loans available, like the standard HECM, HECM for Purchase, Jumbos for higher value homes and even hybrid reverse products for those under age 62, it’s good to explore your options, before you decide.
Step 2. Choosing a Trusted Reverse Mortgage Lender
The HECM reverse mortgage family of loans have rates and fees that are heavily regulated to protect borrowers from being taken advantage of, creating a balanced playing field amongst lenders. This means that your choice in lenders is more rooted in the quality of service, accessibility and trust. So, take time to get to know the lender you are dealing with to ensure they are actually motivated by what’s in your best interest, not theirs.
Step 3. Attend the Required Reverse Mortgage Counseling
Borrowers are required to attend a a HUD-approved counseling session. The counselor reviews the loan details to ensure borrowers understand the loan terms, costs, and potential risks.
Step 4. Submission of the Loan Application
After completing the first three reverse application steps, borrowers will need to submit an application to the lender. The lender will review the application and determine if the borrower(s) are qualified for the reverse mortgage home loan they have applied for.
Reverse Application Steps 5 – 8
Step 5. Home Appraisal
Once the borrower is determined to be qualified, the lender schedules a licensed appraiser to determine the current market value of your home. The appraised value is one of the factors used to calculate the amount of money you can borrow.
Step 6. Processing and Underwriting
After the appraisal process has been completed, the lender processes the loan documents and creates the completed loan package ready for both borrower and lender signatures authorizing the closing process.
Step 7: Closing
The closing process consists of reviewing and signing the completed loan package. If you have chosen a local lender to work with they may come to your home to perform this part of the process. If you are dealing with an out of state lender they may send a notary republic with your loan package to complete.
Step 8: Disbursement of Funds
At the completion of reverse application step 7 the signed loan package is delivered to the title company who then prepares and distributes the loan funds. The funds may be received as a lump sum, line of credit, in monthly payments, or a combination of these options.
HECM Reverse Application Steps Review
We hope that our list of reverse application steps provides a better understanding of what to expect of the loan process. Our main goal, as always, is to ensure you have the information you need to make an educated decision about reverse mortgage loans and access to us as a trustworthy local lender.
Reverse mortgages can be a great option for qualified Oregon homeowners looking to improve their retirement income or have additional financial resources that allow them to maintain or improve the lifestyle they’ve earned over years of hard work and sacrifice.
To schedule a free, no obligation discussion about the pros and cons of reverse mortgage loans, the HECM loan qualifications, or to gain a better understanding of how they work, do not hesitate to give our help line a call at (800) 779-1020, we’d love to meet with you at your home or have a talk on the phone to share anything you need to know about the HECM reverse mortgage home loan.
5 Important Things To Understand As You Consider A HECM Reverse Mortgage Loan
1
At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
2
Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
3
The loan balance grows over time and interest is charged on the outstanding balance.
4
The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home;
5
Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.