Six Steps To A Reverse Mortgage

Follow these six easy steps to get from the start to the finish of the reverse mortgage loan process.

Step One: Education - You may have heard about reverse mortgages on TV or through some other type of advertisement. The promises an ad make sometimes sound too good to be true. The first thing you need to do is educate yourself. BestReverseMortgage.com has set up a learning center with all the information you will need. You can find the Learning Center under Reverse Mortgage Resource Center on the right side about mid way down here.

Step Two: Find A Reverse Mortgage Lender - After reading the articles in the learning center, take your questions and concerns to a reverse mortgage lender. You can easily find a professional in your area using this Reverse Mortgage Lender Directory. Reviewing this article on How To Choose A Reverse Mortgage Lender may be helpful.

Step Three: Counseling - The US Department Of Housing And Urban Development (HUD) trains counselors to work with home owners looking for a reverse mortgage. This proven counseling program takes you through all you need to understand about the consequences of taking out a reverse mortgage. A HUD counselor is also required to discuss any alternatives you may have that could serve you better than taking out a reverse mortgage. Review this article on Preparing To Meet With A Reverse Mortgage Counselor.

Step Four: Application, Processing, Underwriting - When you fill out and sign your application with a reverse mortgage lender, you should be very well-informed and clear on the direction you are going. Once you have completed your application and provided the reverse mortgage lender with required documentation, the lender processes and underwrites your loan. This process can take from two to four weeks.

Step Five: Signing Loan Documents And Funding - Once the loan is underwritten and approved, the reverse mortgage lender prepares legal documents that attach the new reverse mortgage loan to your home. After signing these papers with a notary, you have three days to consider everything. If after three days you are ready to continue, the lender will fund your loan and disperse your proceeds as agreed.

Step Six: Paying Off A Reverse Mortgage - As long as you occupy the home as a primary residence, you don't need to make payments. Once you leave the home, you or your heirs can choose to pay the loan off or the property can be sold and the loan retired. If heirs sell the home to repay the reverse mortgage, the sale proceeds will be sufficient, even if the balance due exceeds the property's value. Review this article on Paying Off A Reverse Mortgage for more information.