What Can I Expect Throughout the Process Of Getting A Reverse Mortgage?
The following is the typical procedure for obtaining a reverse mortgage. As always, we available to answer any questions you have along the way. Just call us at 800-216-6322.
1) Initial Inquiry
We will discuss with you (either over the phone or in person) your reverse mortgage options. We will provide a summary of available funds and how you may receive them and help you decide if a reverse mortgage is the right choice for you. If you choose, you may invite other family members or friends to attend the meeting and ask any questions they may have. It is important for everyone in the transaction to make an informed decision. All Reverse Mortgage Transactions with Morningstar Mortgage are reviewed by a Certified Mortgage Planning Specialist.
2) Reverse Mortgage Counseling
This is really an “education session” to be sure that you completely understand the reverse mortgage and your options before you obtain the loan. The counseling is done by an approved agency and there is no cost and no obligation. The counseling can be done over the phone or in person. As with many items connected with a reverse mortgage, it’s your choice. A counseling certificate will be given to you, or mailed to your home. You’ll need to sign and date the certificate and we will collect it at the time of application since we need to send it along with the loan application package to the underwriter. Please remind your counselor to send a copy to Morningstar Mortgage at the conclusion of your appointment.
3) Application
Either prior to or after counseling has been completed, we will come to your home or you may come to our office for the application appointment. We will thoroughly explain all forms and of course answer any question you have. Once again, you may bring a family member or anyone else who is helping you with this transaction. At this point if you have any concerns that may be better addressed or confirmed with a financial planner, estate planner, or attorney, our Certified Mortgage Planning Specialists will be happy to speak with them and work together to insure you have the best financial plan in place.
4) Appraisal
We will order an appraisal on your home from one of our approved appraisers. The appraiser will contact you directly to make the appointment. Please be prepared to pay the appraiser at the time he/she comes to your home. The fee will be verified prior to the appointment. The appraiser will prepare the report and send it to our processor.
5) Title Work
At the same time the appraisal is being done, the title work is being completed by the title or escrow company. This is in preparation for the closing. The title company may call you with questions during the course of their work. Please provide any information they require as this will make for a smooth transaction. Of course, if you have questions, we are just a phone call away.
6) Underwriting
Once the appraisal, title work and any other necessary information is received, the processor will submit the loan to underwriting. The underwriter’s job is to make sure that the loan file conforms to all applicable guidelines. Once reviewed and approved, it’s time for……
7) Closing
The title representative will come to your home and conduct the closing, or you may choose to come to our office, or the title company. The choice is yours. This is when the legal documents for the reverse mortgage are signed. The title representative will explain all forms and answer any questions you have. After the closing, there is a three day right of recession mandated by the Federal Government. What this means to you is that on the fourth business day after closing the funds you requested will be available to you.
The entire process typically takes 2-3 weeks from the time you begin, until closing. Of course you are under no oblication to proceed quickly, and you may take as much time as you need during any step in the process.
8) After closing
We are here to answer your questions for as long as you have your reverse mortgage. You’ll receive periodic statements about your account showing the current balance, the interest rate in effect, and the amount of funds still available. There will be a customer service number that you may call, as well as other pertinent information about your loan.