If you’ve got already chosen reverse mortgage as your trusted partner within the mortgage refinance jungle it is a blast to explore intimately the steps involved in securing a Free Reverse Mortgage Guide online California. Our simple little guide details the steps involved in getting a reverse mortgage. Be prepared and therefore the entire process will go much smoother.
- AWARENESS
Homeowner learns about the reverse mortgage program from a news story, advertisement, word-of-mouth, etc.
- ACTION
If necessary, the homeowner seeks additional information by contacting a reverse mortgage lender or the top 10 reverse mortgage companies.
- COUNSELING
Homeowner seeks counseling from a HUD-approved counseling agency or AARP-trained telephone counselor. Counseling is mandatory no matter which reverses mortgage product you select. Counseling is typically conducted face-to-face unless you employ an AARP counselor. The counselor provides supplemental information on reverse mortgages, determines whether you’re eligible to urge a reverse mortgage, and discusses other options that will be available to help together with your daily living. The homeowner is going to be given a certificate to offer to the lender as proof they were counseled.
- APPLICATION / DISCLOSURE
Homeowner fills out an application and selects payment option: fixed monthly payments, lump-sum payment, line of credit, or a mixture of those. The lender discloses to the homeowner the estimated total cost of the loan, as needed by the federal Truth in Lending Act. The lender collects money for a home appraisal. The homeowner provides the lender with the specified information, including photo ID, verification of Social Security number, copy of the deed to the house, information on any existing mortgage(s) on the property, and counseling certificate.
- PROCESSING
Lender orders appraisal, title work, lien payoffs, etc. An appraiser involves your home. The appraiser assigns a worth to the house and determines the fitness of the property. If the appraiser uncovers structural defects that need repair, the homeowner must hire a contractor to finish the repairs after the reverse mortgage closes.
- UNDERWRITING
After receiving all pertinent information and data, the lender finalizes loan parameters with the homeowner (i.e., determining payment option, frequency of loan rate of interest adjustments) and submits the loan package to the underwriting department for final approval. Currently, it can take anywhere from 4-8 weeks (sometimes sooner) to finish the underwriting of a loan package.
- CLOSING
If the loan package is approved, the closing (signing) of the loan is scheduled. Initial and expected interest rates are calculated. Closing papers and final figures are prepared. Closing costs are normally financed as a part of the loan. Lender or Title Company has homeowner sign loan papers.
- DISBURSEMENT
The homeowner has three business days after signing papers during which to cancel the loan. Upon expiration of this era, the loan funds are disbursed. Homeowner accesses the funds within the sort of the payment option selected. Any existing debt on the house is paid off. a replacement lien is placed on the house. During the lifetime of the loan, the loan “service provider” disburses monthly payments to the homeowner (if this feature is chosen), advances line of credit funds upon request, collects any repayments on the road of credit, and sends periodic statements.
- REPAYMENT
The homeowner doesn’t make any monthly mortgage payments to the lender during the lifetime of the loan. The loan is repaid when the house owner ceases to occupy the home as a principal residence. The loan could also be repaid by the homeowner or the heirs/estate, with or without a purchase of the house. The repayment obligation can’t exceed the home’s value or sales price.
