A reverse mortgage is similar in many ways to a standard mortgage. What may seem like a lot of stages and paperwork is actually a straightforward loan that will process smoothly and predictably with the help of the experts at Lineage Lending.
Initial Information
You’ve heard about the reverse mortgage from television ads, on the radio or through more detailed brochures through the mail. Perhaps a friend or neighbor has mentioned their interest in moving forward with a reverse mortgage. You have done some internet research and are ready to take the next step.
More detailed information and actual numbers.
A discussion over the phone or a face-to-face meeting with a qualified reverse mortgage specialist provides answers to all of your questions. You will be given a comprehensive analysis from our reverse mortgage calculator of how much cash you qualify for in specific numbers.
Counseling
All reverse mortgage borrowers are required to seek counseling from a third-party HUD approved financial advisor. In many cases, this can be conducted conveniently over the phone. Borrowers will receive two certificates, one to keep and one for the lender.
Application Process
Should you decide that a reverse mortgage is the right financial option for you, a Lineage Lending loan officer will meet with you in your home or another convenient location. There, we will guide you through the application and answer any additional questions. We will give you complete copies of all the documents to enable you to review the loan with family members and trusted financial advisors.
Financial Assessment
We want all parties to be satisfied with the loan over the long term. To help ensure this, HUD requires a review of each borrower’s credit history, property tax payments and other pertinent credit factors. This information will be examined to evaluate a borrower’s financial capacity and willingness to meet the ongoing obligations of the Reverse Mortgage loan which include property taxes and homeowner’s insurance.
Appraisal
As in any mortgage loan, an appraisal of the property is a routine requirement. A reverse mortgage uses a full FHA appraisal. The value of your home is established according to the dollar amount that comparable properties in your neighborhood have recently been sold for. We will arrange the appraisal upon receiving your HUD counseling certificate.
Processing
At this stage in the loan process, we will expedite your paperwork. This is similar to a standard mortgage process which includes the appraisal, title report, and checking the balance of any liens/mortgages to be paid. We will also verify borrower income and other credit factors as pertaining to the loan. We stay in close contact with our borrowers throughout this stage of the loan.
Underwriting
When all paperwork is complete and processed, we will forward your file to the loan underwriter for final approval. We keep in close contact and will work to fulfill any conditions or requirements that may arise in order to close the loan.
Closing and Funds Disbursed
Upon approval by the underwriter, we will contact you to arrange for you to sign the final loan documents with a notary that will come to your home. We will confirm with you your chosen payment plan or partial lump sum (whichever way you choose to receive your money). Once you sign the closing documents there is a three business day grace period enabling you to cancel the loan, should you so decide. Once the cancellation or (recession) period has passed, your funds are distributed in the manner of the payment option chosen at closing.
A reverse mortgage only sounds complicated. Give Lineage Lending a call and learn from our first conversation how a reverse mortgage in California can be a transformative and safe financial tool to help you to achieve security, maintain your lifestyle and enjoy financial freedom.
After all, it’s your home equity, why not put it to work for you?
