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Steps in Getting a Reverse Mortgage

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What are the Steps in Getting a Reverse Mortgage?

 Senior man giving woman piggyback ride through autumn woods

1) Meet with a representative from Volunteer Mortgage, Inc.     Meet with a Reverse Mortgage Consultant from Volunteer Mortgage, Inc. Your consultant will explain the details of a Reverse Mortgage. They will look at your individual situation and determine which approach works best for you. This is also a good time to have any individuals who would be involved in the decision to get the Reverse Mortgage to be present.

2) Counseling     You will be given a list of HUD approved counselors. You will set up an appointment with one of them. The counseling agency will review documents they had sent you to be completed.  Once that is done, they will explain the details of a Reverse Mortgage again.  They will issue you a counseling certificate that authorizes you to start the process toward obtaining a Reverse Mortgage.  By law, we cannot incur any costs on your behalf until we have confirmation that you have completed the counseling.  Once we receive the original counseling certificate we can begin processing your Reverse Mortgage.
Senior couple on cycle ride in countryside

3) Application     The Reverse Mortgage Consultant with Volunteer Mortgage, Inc. will get together with you to sign the application to start the process. They will also collect for an appraisal at that time. Signing the application documents DOES NOT commit you to completing the loan process and closing the Reverse Mortgage.

4) Processing     From time to time you may be contacted by the loan processor on questions she may have thru the loan process.

5) Appraisal     You will be contacted by a FHA licensed appraiser to set an appointment to come to your home.  The appraiser will determine the market value of your home.  They will also perform a general inspection to determine if there are repairs that might need to be done to bring the house up to the minimum FHA standards.

6) Credit Report     Volunteer Mortgage, Inc. is required to order a copy of your credit report.  Although you don’t have to credit qualify for this loan, the lender is looking for any judgments or liens that could affect title to the property.  If there are any, they will need to be paid from the proceeds of the loan.  You will receive a notice from the credit bureau that your credit report has been pulled by Volunteer Mortgage, Inc.  This is a form letter that is required to be sent to you by law.  It gives your credit score and lists “key factors” as to “supposedly” why your score is what it is.  The “key factors” listed are always the same whether you have perfect credit or not.  The “key factors” are always negative.  Please ignore these “key factors” as they usually aren’t relative to your credit scores.

7) Loan Submission     Your loan application will be submitted to the lender.  The lender may send out a package of disclosures that look similar to the papers you have already signed with Volunteer Mortgage, Inc..  The cover letter generally asks that you sign and return the package. You don’t have to return the package.  It is a legal requirement that they send out disclosures when they receive your loan request to be underwritten.

8) Underwriting     The underwriter is the person who makes the decision to approve or decline the loan request.  Occasionally the underwriter may request additional information before issuing an approval.  Our processor may contact you if we need your assistance.

9) Loan Approval     We will notify you that your Reverse Mortgage has been approved.

10) Loan Closing     We will call you to schedule a time that is convenient for you to close your loan.  You can go to the Title Company or a notary can come to your home to present the loan documents for your signature.  Your Reverse Mortgage will fund on the fourth business day after the final loan documents have been signed.


Congratulations! Your Reverse Mortgage is Complete!

Or Is It?…


11) After Your Reverse Mortgage is Closed     Expect to get BOMBARDED with junk mail.  The Deed of Trust is recorded with your County Clerk and Recorder.  It is a public record at that time and anyone can view it.  It seems that since the “National No Call” list was instituted prohibiting telemarketing to those who signed up, these records have become a major resource for marketing companies.  They look for newly closed loans and sell the list to insurance companies, etc.  You will receive solicitations in the mail that appear to be coming from the lender that closed your reverse mortgage trying to sell you something.  Most likely they are not.  Please give us a call if you have any questions about something you have received.

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