Wells Reverse Mortgage: Mary Ann of Philadelphia, Pa called in today and was wondering how the reverse mortgage process works. I thought I’d take the opportunity to explain the process to all of you as well.
1. Discuss Your Situation With Me
The first step is to learn about reverse mortgages. They’re unlike any other mortgage you’ve had before, but they can provide a lot of financial flexibility even while allowing you to live in and keep your home.
Besides reviewing the material here on this site you can also visit my official Wells Fargo page, one of the best ways to learn what you need to know about reverse mortgages is to simply give me a call toll-free at 877-311-7383. I’ll be glad to help you understand the loan and answer any questions you have.
2. Get Financial Counseling
To ensure that you understand the loan, independent third-party counseling is highly recommended (for some types of reverse mortgages, it’s required). This is usually provided by a HUD-approved nonprofit agency, and often it can be done over the phone. The counselor will explain your options and your eligibility. I’ll provide a list of counselors that you’ll be able to select from.
And of course you can consult with me at any time.
3. Apply for Your Reverse Mortgage
You can apply for your reverse mortgage with me by using a special reverse mortgage application that I can provide (or I can take your application over the phone). I’ll help you to determine the right option to meet your needs, and I’ll gather the necessary documentation, such as Social Security number verification and property information.
4. Loan Processing & Underwriting
As part of your loan application, I’ll order title work and an appraisal for your home. In some cases, a home inspection may be required. When all the necessary information is gathered, your loan will be submitted for approval.
5. Loan Closing & Disbursement
Your loan will be scheduled for closing, and final figures will be prepared. You’ll have three days after closing in which you can cancel the loan, if you wish. After that, you’ll have access to the funds from your reverse mortgage, according to the disbursement option you selected.
6. Repayment
As long as your property remains your principal residence, you’ll never have to make a monthly mortgage payment. Instead, you’ll be able to access funds from your home through the payment option you selected.
The loan can be paid off by the borrower or the borrower’s estate, typically with proceeds from the sale of the home (although a home sale is NOT required). The repayment option cannot exceed the home’s market value.
