STEP ONE

Decide Whether a HECM is Right for YOU.

With the vast amount of MISinformation that Reverse Mortgages have attracted in the past, it is important to talk with a specialist that can answer ALL your questions.  Meet with an experienced HECM Specialist or Reverse Mortgage Loan Officer that is willing to sit down with you, your family, friends and/or advisors, all wherever you are most comfortable.  Deciding on a H.E.C.M. may be one of the biggest retirement decisions you make and may not be easy to make alone.

STEP TWO

Receive HUD-Approved Counseling.

You must provide a Certificate of Counseling to your HECM Specialist or Reverse Mortgage Loan Officer prior to completing a HECM Reverse Mortgage application.  HUD will allow your counseling to be done via telephone if you prefer.  Your Reverse Mortgage Loan Officer will provide you with a list of all HUD approved counselors in your State.  Your Reverse Mortgage Loan Officer may NOT assist in scheduling your counseling session.

STEP THREE

Submit an Application.

Schedule an interview with a Reverse Mortgage Loan Officer that is willing to meet with you either in your home, their office, or wherever you are most comfortable.

STEP FOUR

Receive FHA Certified Appraisal.

HECM benefits are based on the value of your home, which must be certified by a licensed FHA Certified Appraiser. The appraiser will determine if your home meets HUD requirements. If any deficiencies are found they must be corrected either before closing or within nine-months, for most repairs.

STEP FIVE

Wait for Lender Approval.

This step is simply time consuming.  The lender is responsible to review your file to ensure it meets FHA approval and HECM guidelines. With the numerous regulations, set forth by the FHA, it is no wonder that this can take a while.

STEP SIX

Sign Final Loan Documents.

Once approved, you will be required to sign, and have notarized, the final loan agreements.  Be sure to ask that this be done in the comfort of your home, as it can be lengthy.  A copy of all documents will be provided at the time of application and again at the time of final signing.

FINAL STEP

Receive Proceeds.

Three days after signing the final Reverse Mortgage loan documents, the proceeds are released from escrow. By law, you must wait three days to ensure you haven’t changed your mind.