You have lived in your home, many of you for over 25 years. You mow the grass, you fix up the house, but perhaps you're thinking of letting your home work for you. Tapping into tax free equity from your home's retirement "bank" is easier than you think.
How do I start the process of obtaining money from my home with a Reverse Mortgage? Begin by meeting with a Reverse Mortgage Specialist to review the different programs, closing costs, and structure your loan to suit your needs.
Even though the FHA Max lending limit is now $726,525, homeowners with houses in the millions can benefit from the FHA Reverse Mortgage Jumbo programs. We arrange these loans through third party providers.
So when is your home going to start paying you back? Below are the steps toward getting a Reverse Mortgage.
Is there more month left at the end of the money?
You may require more monthly proceeds than offered by your typical Reverse Mortgage. A term loan may be the answer. Example: You qualify to receive $1,200 per month, but your lifestyle requires $1,600 per month. Your Reverse Mortgage Specialist may be able to structure your Reverse Mortgage as a term loan so your monthly check will be higher. You will be able to decide which option best suits your needs.
1. Contact a Reverse Mortgage Specialist: Begin by contacting a Reverse Mortgage Specialist with Advisors Mortgage. You will receive a free, no obligation consultation so you can examine the Reverse Mortgage figures and parameters. Your Reverse Mortgage Specialist will discuss all your options and determine if a Reverse Mortgage is right for you. You may want to invite a friend, family member, or financial advisor to the consultation in order to ask questions and get information.
2. Independent Reverse Mortgage Counseling: Reverse Mortgage counseling with a HUD approved counseling agency must be completed prior to getting an appraisal of your property. reverse mortgage counseling was set up by the Federal Government as a safeguard for borrowers. It is there for your protection and ensures that all your questions are answered and that you understand the parameters of a reverse mortgage. NOTE: There is nothing to preclude signing an application prior to Reverse Mortgage counseling. But nothing can proceed until HECM counseling is completed.
After your counseling session, you will receive a HECM counseling certificate. If counseling is done over the phone, the certificate can be faxed or emailed to you to expedite the process. (An original will be mailed to you.
Contact your Reverse Mortgage Specialist to advise them you have completed Reverse Mortgage counseling. You will provide your specialist with the original certificate and retain a copy for yourself.
3. The Reverse Mortgage application: Your Reverse Mortgage Specialist will walk you through the application & signing process, and you will decide how you wish to receive your funds.
4. Documents required at application signing: Photo ID, verification of social security number, and proof of identity is required. Income documentation is also required.
5. Appraisal & Title Search: An appraisal of your home will be performed to determine its value. With a reverse mortgage, a full appraisal is required which means an interior and exterior inspection will be conducted, and photos of parts of your home (inside and outside) will be taken. The appraiser will compare your home to homes in your area that are similar to yours. A title search will conducted to determine ownership of your property.
6. Submission of Your Loan to Underwriting: After the appraisal and title are completed, your application can be submitted to Underwriting at the lender. Once the Underwriter determines that the home meets the requirements of the lender and FHA, a conditional approval is issued.
7. Conditions Required by the Lender: There is one more step before your loan is cleared to close: conditions required by the lender. There are various conditions that the underwriter may require. Your Reverse Mortgage Specialist will work with the underwriter and you to complete all the conditions.
8. Clear to Close: Your Reverse Mortgage Specialist will inform you when your loan is clear to close. This means all conditions have been satisfied, all the necessary documentation has been deemed acceptable, and your loan can close.
9. Closing: The settlement agent, sometimes an attorney for the lender or the title company, will close your loan. The title closer (responsible for paying your taxes and insurance) may also attend the closing. Different states do things differently. Closings generally take about one hour or more. ((In New York state, you must also have your own attorney. )
10. Right of Rescission: You have three days in which to reconsider and cancel the reverse mortgage transaction. This is known as the the "right of rescission" period. (Saturdays are included. Sundays are excluded.)
Funding: You will receive your funds either by direct deposit into your checking/savings account or by check which can be overnighted to you.
Everyone's needs are different. Your desire or need for a reverse mortgage will be entirely different from someone else. Maybe your need is to pay for in-home care with your reverse mortgage proceeds. Perhaps you'd like to buy a new car or travel. It doesn't matter what you wish to use the money for, it's yours to enjoy from the equity in your home.
3330 Park Avenue, Suite 1, Wantagh, NY 11793
ADVISORS MORTGAGE GROUP, LLC Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793 Licensed Mortgage Banker. Licensed by the New York State Department of Financial Services, Licensed by the New Jersey Dept of Banking and Insurance
FOR CONCERNS OR COMPLAINTS, CONTACT: ADVISORS MORTGAGE 800-778-9044
NOTE: Website authorization by New York State Dept of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site.