Reverse Mortgage Loan Process

FAQs | Info | Loan Process | Counseling | Glossary | HECM 'At-A-Glance'

Application & Loan Process

Get educated!
Get all the information you need to decide if a Reverse Mortgage is right for you.
Request profile

Counseling
Request a California Reverse Mortgage Pre Counseling Packet and schedule your counseling session.

The Application and Documentation  
   
Complete a reverse mortgage loan application and select the payment plan. We will meet with you in your home, our office or we’ll send you an application by mail. 

We will need the following documentation:

Evidence of Date of Birth - Copy of Drivers License, DMV Identification Card

Evidence of Social Security Number - Social Security or Medicare card

• Homeowner’s (Hazard/Fire) Insurance Declaration Page
• Mortgage statement or name of the lender and loan number (If applicable)
• Complete copy of living trust (if applicable) including schedule A and notarized pages
• HUD Counseling Certificate
• There is no application fee and the appraisal fee will be financed. If you cancel during the loan process you are obligated to pay the cost of the appraisal.

Processing, Underwriting and Closing

Our in-house loan processors open escrow, order the title work, order the appraisal, lien payoffs and credit and flood reports.  The appraiser will call you to schedule a time that is convenient for the home inspection. If the appraiser finds defects and repairs are required, it can be completed within 6 months of closing and repair costs will be held in reserve. Once all of the necessary documentation is received, your loan package is submitted to one of our preferred lenders.

Conditional loan approval is back within a few days, conditions are cleared and we will call you to confirm how you want to receive the money and schedule a time to come to your home (or another location) to sign the loan documents.

There is a three day rescission period allowing you time to completely review the contract and cancel if you wish.  After the 3 days if there is no cancellation, the loan is funded. If an initial draw is requested, it is wired into your bank account or a check is mailed to you. Any existing debt is paid off and a new reverse mortgage deed of trust is recorded.

If you selected a monthly payment, you will receive it in the first week of the following month. If you selected a line of credit, it will be made available to you within approximately one month from closing.

You will receive regular statements on your account and we are available to assist beyond the close of your reverse mortgage.

Repayment

There is no requirement to make monthly mortgage payments, although you can if you wish.  You must keep property taxes and homeowner’s insurance current and keep the property maintained. The reverse mortgage becomes due and payable upon: the death of last remaining borrower, the sale of the home, or if you no longer occupy the home as primary residence. When the reverse mortgage loan is due, the heirs/estate may repay the loan from the sale of the property and benefit from the remaining equity after the sale, or they may keep the home by paying off through a refinance or cash payment. 

After your loan closes, as your reverse mortgage representative / agent, Maggie O’Connell continues to be available to answer your questions and provide assistance.