Steps to Get a Reverse Mortgage

Today we would like to give you some steps to get a reverse mortgage. We hope that this information will help you to understand more about the reveres mortgage. Here are the steps:

1. You should learn about reverse mortgages. You can read some articles related to this, browse the Internet, read the advertisement, or ask your friends about it.

2. Then, you can try to contacts a reverse mortgage lender or the National Reverse Mortgage Lenders Association to learn more about reverse mortgages.

3. You can seek counseling from a local HUD-approved counseling agency, or a national counseling agency. You can do it online, by phone or face-to-face.

4. You can fill out a loan application and selects a payment plan, whether fixed monthly payments, lump sum payment, line of credit, or a combination of these.

5. Give the lender about the required information, including verification of Social Security number, copy of deed to home, information on any existing mortgage(s), and counseling certificate.

6. You can start the process. Usually the Lender orders an appraisal, which the homeowner pays for, to place a value on the home.

7. You can hire a contractor to complete the repairs.

8. After receiving all pertinent information and data, lender finalizes loan parameters with you as the homeowner. Then they will submit loan package for final approval. It can take anywhere from 4-8 weeks to underwrite a loan package.

9. If the loan package is approved, closing of loan is scheduled. Interest rates are calculated. Closing papers and final figures are prepared.

10. You have three business days after signing papers in which to cancel the loan.

11. You can access the funds in the form of the payment option selected.

12. You can use the loan proceeds for any purpose.

13. The loan service manages the account and is responsible for disbursing monthly payments to you, , advancing line of credit funds upon request, collecting any repayments on the line of credit, and sending periodic statements.

14. You don’t have to make any monthly mortgage payments during the life of the loan.

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