Picture this… you’re a senior homeowner and nearly every time you visit your mail box, you get 1-5 solicitations for a reverse mortgage. You keep all the postcards and letters handy in the event you decide to make a decision to proceed with a reverse mortgage. You’re starting to learn a lot regarding the program just from all the direct mail pieces you may have received. Your phone is starting to ring almost daily with reverse mortgage telemarketers. You hear the buzz on the news and with your mates that reverse mortgages have formulated. You see TV commercials with Robert Wagner, James Gardner, and Pat Boone among many others. You now have a stack of solicitations higher than three Los Angeles phone books and your interest has peaked. You know you would like to start to look into Medford reverse mortgage but you don’t know what steps are involved or how to you proceed with a reputable company? Yes you do have countless mail pieces, but what company will truly offer you the best service and best fee structure.
The aforementioned scenario is extremely common. The entire reverse mortgage process can be quite overwhelming for some people. Your decision of the things company to choose to the process itself may cause a lot of seniors would you greatly take advantage of a reverse mortgage to transform a shoulder and never even explore the idea. Fact is, with the right reverse mortgage company, a reverse mortgage may adequately become the easiest transaction plenty of seniors have been a party to.
The first step would be to pick a reputable company. Look towards friends and family who might have received a reverse mortgage. In case you are not aware of anyone who has received a reverse mortgage, or you family didn’t have a great knowledge of their reverse mortgage professional, check out NRMLA (National Reverse Mortgage Lenders Association). People in NRMLA have subscribed with their code of ethics and definately will always deal in a professional manner making use of their senior clientele.
Once a reverse mortgage company or broker is chosen, it’s time for you to start to understand more about reverse mortgages. The very first conversation you might have using a reverse mortgage professional will usually be to collect very important information on your part like birthday, property address, home value, existing loan amount and most importantly the reverse mortgage professional will explore along with you why you’re looking at a reverse mortgage to help see whether it’s the best decision for you personally. At this point over time, you and the advisor will talk about how much money is available to you in addition to each of the fees involved. They will likely also give you a quotation in writing that will contain 4 items. 1. Reverse Mortgage Estimates page, which shows a comparison of three programs. 2. A Great Faith Estimate that shows a breakdown of fees involved. 3. An Amortization Schedule that shows the way the loan balance grows over time. 4. A TALC (Total Annual Loan Cost), which shows the cost of the loan as time passes.
Now, after the first discussion, this is an excellent time to discuss the reverse mortgage with friends, family or perhaps a trusted advisor. They could also have questions for your reverse mortgage professional and it’s a smart idea to get them touch base to make certain that all questions are thoroughly answered.
Next, if you opt to proceed, you will need to go through a counseling session carried out by an independent third party counselor. Counseling costs typically $125 and is due at the time of your counseling session. In case you have a hardship and can’t pay it off upfront, please notify your counselor. Your reverse mortgage professional should provide you with a list of at the very least 5 counselors which can be inside the proximity of your house. This counseling session can be carried out on the phone, or perhaps in person. In your counseling session, the counselor will review the 4 items that the reverse mortgage professional sent you earlier. The counselor will make sure you realize the reverse mortgage program and also other alternatives to reverse mortgages.
After counseling is complete you are going to obtain a counseling certificate in the mail. You will have to sign it and send it back to your lender or broker. Once the lender or broker has the certificate, then the process can continue. The following stages are like every other mortgage. The lending company will order an appraisal, title report and open escrow. Inside the mean time, the reverse mortgage professional will require an entire application on your part, either in person or over the telephone, which takes about 10 minutes. Only a side note, the financial institution can take the applying just before your counseling session, however there can be nothing done by the financial institution that will incur an expense for you before counseling. When the lender is taking the application, it will be delivered to you for signatures. Another point out note here is that signing the application form will not obligate you to definitely perform the reverse mortgage. You may back out at any point in time along the way for whatever reason. Attached to the application will be a listing of items necessary for the financial institution like verification of your own social security number, a photograph ID, a copy of your own mortgage statement (for those who have a mortgage), copy of the trust (if applicable), copy of the strength of Attorney (if applicable), copy of your own property insurance declaration page, etc. All you have to do is sign and return the requested items specific for your loan scenario.
When the lender receives all items from you, the appraisal, title report as well as any other necessary items, the loan will be submitted to underwriting. Throughout this stage, the underwriter examines the file and makes a determination if any other items is going to be necessary. If so, they let the lender know, who subsequently will notify you of the additional items needed. Once those things are met, the underwriter will issue a clear to close.
Once a clear to close status continues to be received, you are going to obtain a phone call through the reverse mortgage professional verifying how you would want to receive your loan proceeds in addition to establishing a time for you to sign your final loan documents. In regards time for you to sign you final loan documents, most lenders sends someone to your house to achieve this task.
Right after the loan documents are signed, they are sent back to the lender for final review. After your three day right of rescission is up, if all outstanding items have been met, the lending company will fund your loan. When the loan funds, title will kbfshn a wire from the lender. They disburse the funds as requested and release the financing to record with the county. Then you definitely are free of charge to enjoy the loan proceeds however you see fit. Your task following the loan closes is two fold. One, enjoy life to the fullest and 2, spread the word about reverse mortgages to those who you feel could take advantage of the product. Oh yeah, in case your reverse mortgage professional did a good job, you can refer him/her to your friends and family.