8 Documents You Need to Apply for a Reverse Loan

Applying for a reverse mortgage involves a lot of paperwork. Use the following checklist to assemble all the documents you need to make the reverse loan application process as smooth as possible.

1. Deed to your home. Anyone who wants to borrow with a reverse home mortgage must have his or her name listed on a deed. It isn’t enough to have lived in a home for many years with a spouse who owns a home.
2. Statements detailing income and expenses. Information about current expenses for housing, food, transportation, utilities, debt, and other obligations need to be reviewed by a reverse mortgage counselor.
3. Loan statements for your current mortgage. This information is needed if you must pay off a mortgage with part of the proceeds from a reverse loan.
4. Reverse mortgage counseling certificate. Counseling is required before you can apply for a reverse loan, and a certificate shows reverse mortgage lenders that you have received help.
5. Homeowners insurance policy. You must maintain coverage on your home when you have a reverse mortgage. If you have had the same insurance for years, considering reviewing your policy to make sure you have adequate coverage.
6. Property tax bill. Not paying property taxes can result in the lender requiring you to pay back a reverse loan early.
7. Identification. You must be at least 62 to apply for a reverse mortgage. Have your driver’s license or passport ready, as well as a Social Security card.
8. Death certificate. This document is needed if your spouse was also on the deed to your home but has died.
9. Power of attorney. The paperwork is required if you are handling financial matters for another person, such as an elderly parent. The document proves that you have the power to make decisions, such as applying for a reverse mortgage.

Reverse Mortgage Quotes

Once you have all the necessary paperwork assembled you can begin comparing reverse mortgages. You can look for reputable reverse mortgage lenders here.

This entry was posted on Thursday, April 29th, 2010 at 12:11 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.