If you’re ready to get started with a reverse mortgage, we’re here to help! Here’s what the process will look like step by step.
1. Meeting with Reverse Mortgage Loan Originator (RMLO)
Discussing your goals with your RMLO will help both of you get a clear idea of what a reverse mortgage can do for you and see if it is the right fit for you at this time. During this meeting, your RMLO will determine the amount you are eligible for and provide a proposal using an estimated value for your home. An FHA certified appraiser will establish the actual value later in the process (see step 3).
2. Complete Application and Counseling
If you decide a Reverse Mortgage is a good fit for you, you must complete mandatory counseling to obtain a signed Counseling Certificate. This will allow your RMLO to submit your application along with some personal documentation they’ve collected from you.
3. Home Appraisal
After counseling and application, your Homebridge Reverse Mortgage Operations Team will order an appraisal and an FHA certified appraiser will determine the official market value of your home. In Step 1, your RMLO estimated the value to determine how much equity you have in your home. After the appraisal, these numbers will be adjusted and a final amount of equity in the home will be set.
4. Underwriting
During underwriting, all the documentation you have submitted will be reviewed and you will be contacted for any additional items the Underwriter needs to complete your loan file.
5. Close
Congratulations! Your loan application has been fully approved and you’ve been given the clear to close! Your RMLO will review the final numbers with the Homebridge Reverse Mortgage Operations Team and the Closing Agent to ensure accuracy and confirm how you want to receive your funds. You will then meet with the Closing Agent to sign the final documents.
A reverse mortgage application is not a binding agreement, nor is it a definitive confirmation that the applicant will obtain a reverse mortgage. Completing the mandatory HECM counseling is also not a guarantee of loan approval. At any time before signing, the buyer can withdraw the application.