Procedures to Apply for a Reverse Equity Mortgage

·         You will complete an application for a mortgage (it is non- binding).

·         We will require copies of your Social Security card, driver’s license, and Medicare card and other property related documents (list available). I can make copies of your documents at your own home. if you prefer.

·         You will complete (over the telephone) a 40 to 50-minute required counseling session with an independent HUD approved Counselor, which we will arrange once you give us the go ahead. There is a charge for the counseling session which will be included in the closing costs deducted from the loan proceeds at closing. You DO NOT incurr an obligation to close the Reverse Mortgage by being counseled. Counseling is available in Spanish and many other languages.

·         Upon completion of the counseling session the counselor will mail you a certificate from the Housing and Urban Development Department. Please sign it in “blue” ink and return to us as we must include one of the “original” signed certificate in the file package. Keep one of the originals for yourself.

·         We collect an appraisal fee of $350 and order an appraisal. The appraiser will contact you for access to the property. The $350 will be included with the other closing costs in the mortgage, and the $350 will be credited to you three days after closing.

·         The Certificate of Counseling, appraisal, signed application and disclosures, are then given to our underwriter for approval. Our company is approved to underwrite loan applications in our office, giving us the ability to deliver fast service to our senior applicants.

·         While the application’s processing and underwriting are being performed, our closing agent will up-date the title to your property and prepare to close the mortgage.

·         The entire process, from application to closing, takes between 30-45 days, depending on how fast you provide us with all the documents and the original certificate

·         When approved by the underwriter, and title has been determined to be insurable, we will close the mortgage.

·         A few days prior to closing, we will ask you how you want the funds disbursed.

1) a Lump Sum  2) a CreditLine   3) a fixed monthly income or any combination of 1, 2 or 3.  This decision should be final and cannot be changed at closing. If you choose a monthly income or a Creditline you will be able to request changes at anytime after closing.

·         Three days after closing (Required federal Rescission Period) we disburse the mortgage proceeds to you. Should you want it to be deposited directly to your checking account, bring a “voided” check to closing.