How the reverse mortgage process works
Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender. Here are the steps you can expect to go through when you apply for your reverse mortgage with Resolute Bank.
The first thing we like to do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. We talk about the pros and cons, how it works, how much money you might receive and anything else you’d like to know about.
Whether you've decided a reverse mortgage is the right decision, or are still looking for new information, receive independent counseling from a certified, HUD-approved counselor required to make sure that you have had all your questions answered and that there's been no confusion. It’s a protection device that the government has built into the process of obtaining a reverse mortgage to ensure that all clients know and understand how the program works.
You can technically complete a loan application in most states prior to your HUD counseling session. However, since the counseling is a requirement of the loan and it will help answer additional questions, it is usually a good idea to complete this before the application. Once you are ready to proceed, you will complete a reverse mortgage loan application with your loan officer. Once the application is complete, we can start to process the loan transaction.
Once the loan application is in our processing department, we arrange for a FHA approved appraisal to determine the objective market value of your home and whether any repairs will be required to meet the Federal Housing Administration's guidelines.
After the appraisal and any required inspection reports are completed we go through all the normal processing procedures that you might find in any mortgage. Each loan file will go through a credit and property analysis to determine if the loan and borrower(s) meet FHA guidelines.
After the underwriter has approved the loan file, you will review and sign final loan closing documents. Should you change your mind at this stage, you will have three business days (rescission period) to cancel (there is no 3 day waiting period for a HECM for Purchase). After the three business days, you will have access to your funds, depending on the type of disbursement you choose. Your loan officer will provide you with more detailed information on how to receive those funds.