Steps To Getting A Reverse Mortgage

Are you looking for a reverse mortgage but you don’t know exactly where to look? Well then you have came to the right place because within this article we are going to tell you nine steps on how to get reverse mortgages. That means that if you want to know about reverse mortgage then you have came to the right place.

One step that you may want to take to learning about reverse mortgages would be by going online and searching for “steps to getting reverse mortgages” in Google or whatever type of search engine it is that you use. While doing this search about reverse mortgages chances are you are going to run into some type of news article or advertisement that will tell you all about reverse mortgages. Another way to learn about reverse mortgages is perhaps someone you know such as your friend, family or even co-worker could tell you some information on getting a reverse mortgage. The key to step one is called awareness.

The second step to learning about reverse mortgages is known as upfront education. Upfront education is when you contact the person directly. In this case you will be contacting a reverse mortgage lender or even the National Reverse Mortgage Lenders Association. Contacting either one of these two groups is a good way to learn more about reverse mortgages.

The next step we are going to talk about with this article is known as counseling. Counseling in this case is when a homeowner calls a local HUD-approved counseling agency or even a national counseling agency. If you are looking to learn about reverse mortgages and would like to take this step then some good places that you may want to call is the following: AARP at telephone number 800-209-8085, National Foundation for Credit Counseling 866-698-6322, last we have Money Management International at 877-908-2227. You may need to know that in order to get a reverse mortgage counseling is required. You can do the counseling either face to face or by phone. Most people prefer doing reverse mortgage counseling by phone so if you think that is the best idea then feel free to ask for it.

You can’t just go to a counselor and get a reverse mortgage right away because the counselor is going to follow the law correctly. You may want to know that the counselor is going to tell you that it is the law that they have to review all options that are available for you other than a reverse mortgage. Some other options include housing, health and financial alternatives, social services and also property tax deferral programs.

The fourth step that we are going to discuss about reverse mortgages is called the application/disclosure. This is where you as a homeowner will need to fill out the application for a loan. When you are filling out this loan application you will also need to select a payment plan. Your payment plan that you choose could be any of the following (note: you can also choose a combination of these) fixed monthly payment, line of credit or a lump sum payment. The lender is going to tell you the estimated total cost of the loan because this is what the Federal Truth Lending Act requires. Keep in mind that you will have to have your information with you such as your social security number, information on any existing mortgage(s), Social Security number and also that counseling certificate that you were supposed to obtain previously.

Next we have what we call processing. Processing is where your lender is going to order an appraisal that you are going to have to pay for in order to place a value on the home. What the appraiser is going to do is make sure that the physical condition of the property you are looking to get meets all the guidelines set forth by the FHA. During the appraisal if the appraiser comes across any damage then the homeowner will have to hire a contractor and see that they complete those repairs.

In this step we are going to discuss with you something that is known as underwriting. Underwriting is when the lender finalizes the loan parameters with the homeowner after they get all the information and date that is needed. This is when they will be determining the frequency of your loan interest rate adjustments. In this step they will be submitting your loan package for final approval. You will have to be patient because this final approval can take anywhere from four to eight weeks, sometimes it could be sooner then again sometimes it could take longer.

We are getting close to the last step that we have been waiting for. Within this step we are going to discuss closing. Closing is what happens if your loan package is approved. Closing means that you will be signing this loan. During closing the interest rates will be calculated and showed to you. You may also get to see the closing costs of your loan.

Now we are going to discuss step eight, disbursement. Disbursement is when the homeowner (in this case that would be you) only has a certain amount of time to cancel the loan after signing papers and that is three business days. The homeowner will be getting the funds in whatever form they previously selected. If you have any existing debt on the home then it is paid off during this step. Now this is when a new lien will be placed on the home. You may use any loan proceeds that you have for anything you like.

Finally, the last step we have been waiting for, repayment. If you are a homeowner and you followed all the steps above then you will not have to make any monthly mortgage payment during the life of the loan you had set up. The selected loan is repaid whenever you cease to occupy the home as your first residence. Keep in mind that the repayment option cannot exceed the home’s value or sales price.

Article source: http://hecmloan.xyz/apply-reverse-mortgage

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