Reverse Mortgage steps
1) Counseling (list below) and Application signing - The first thing I do is talk to you, either over the phone (205) 908-2993 or in person, or email me about whether a reverse mortgage is right for you. We talk about the pros and cons of the program, how it works, how much money you might receive and anything else you'd like to know about. Then you need to make an appointment to receive independent counseling (list below) from a certified, HUD-approved counselor to make sure that you have had all your questions answered and that there's been no confusion. Some may even ask you about monthly bills to help you see you financial picture before and after the reverse mortgage. It's a protection device that the government has built into the process of obtaining a reverse mortgage.
2) Appraisal – This step is the most time consuming – Lenders are not allowed to directly order the appraisal, so this step can take up half the total time to close a Reverse Mortgage. Up to 2 weeks. Then we help you arrange for an appraisal to determine the objective market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines. We require a $450 appraisal fee up front . You may use a money order, or a check card / credit card authorization. This will be refunded to you in your closing costs.
3) Underwriting - After the appraisal and inspection reports are completed we go through all the normal processing procedures that you might find in any mortgage.
4) Closing - The final step of the program is the closing where you sign the final paperwork. After that you get a 3 day right of recession in case you change your mind. Then you receive the proceeds from your reverse mortgage either wired to your bank or a check sent over-night (Fed-Ex or UPS) to you. You can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit. Then it's up to you: pay bills, fix up the house, help a family member, or use the money to enjoy your life.
HUD requires each borrower applying for a Reverse Mortgage loan to receive counseling prior to completing a Reverse Mortgage transaction. Below is a brief list of approved counseling agencies who offer this counseling by telephone or in person. Let the counselor know you are working with Scott Underwood on your Reverse Mortgage and I can send her a copy of the illustration so it can be gone over during the counseling session. The Counselor may also fax me a copy of the certificate to 1-866-254-1424.
| Hancock Community*$125 | 888-315-4326 |
| Spring Board Non-Profit | 800-431-8456 |
| Green Path Counseling | 800-860-4167 |
| Sure Path Financial | 877-615-7873 |
| Debt Helper *$89 | 800-920-2262 |
| CCCS Birmingham | 205-251-1572 |
| National Foundation for Credit Counseling | 800-388-2227 |
| Credibility | 866-616-3716 |
| Money Management International | 800-308-2227 |
| CCCS Mobile | 251-602-0011 |
When we meet to get started I willl need :
- $450 appraisal fee (refunded at closing)
- Counseling Certificate (see below)
- I will make a copy of your Deed
- Photo I.D. (Driver License)
- Social Security or Medicare card
- Homeowner insurance policy
- If needed : Death Certificate - Power of Attorney - Trust Documents - Survey
I carry a scanner with me so there is no need to make copies in advance.
