Steps to Getting a Reverse Mortgage

The steps to getting a reverse mortgage loan are a much simpler process than those required for a traditional home equity loan or residential mortgage. Reverse home mortgages are regulated by federal and state legislation that govern the requirements for due diligence and administrative steps needed for approval of a reverse loan. In all 50 states, the senior borrower is required to attend a HUD-approved consultation prior to submitting an application for a reverse mortgage or FHA-insured Home Equity Conversion Mortgage (HECM). Listed below are the basic steps for reverse mortgage loan approval:
• Ensure that all owners named on the title are 62 years of age or older
• Use our website’s convenient reverse mortgage calculator to estimate the amount you qualify for
• Learn as much as you can about the reverse mortgage lenders you are considering
• Contact Trinity Reverse Mortgage for a list of FHA-approved pre-application counselors
• Attend the mandatory HUD consultation on getting a reverse mortgage loan
• Work with your reverse mortgage lender to complete your application
• Instruct your lender to process your application and underwrite the reverse loan
• Finalize the reverse mortgage loan at closing – See HECM for Purchase
• Receive tax-free cash disbursements as one lump sum, monthly payments or home equity line of credit (HELOC)
• Eliminate your mortgage payment
• Repay the loan whenever you or your heirs elect to sell the reverse financed property and keep the remaining equity at close for escrow for yourself or your heirs.
As of 2009, California Reverse Mortgage lenders are required by state law to provide the prospective senior applicants with a clearly written reverse mortgage checklist and comparative analysis prior to their meeting with a HUD reverse mortgage counselor. The reverse mortgage loan and Home Equity Conversion Mortgage were developed to make borrowing against home equity easy for senior homeowners regardless of their particular need for tax-free cash disbursements. If you would like additional information regarding the best steps to take when considering a reverse mortgage or HECM, contact Trinity Reverse Mortgages today at 1-866-707-4664 for your “No Obligations” free quote.