Question:

What are the steps in a reverse mortgage application?

Answer:

The reverse mortgage application begins with a non-binding request on your part. After you have discussed your needs and intentions with family, friends and a reverse mortgage officer, you may submit a non-binding request to continue further. At this time you can always step back if you change your decision.

Next step will involve talking with a reverse mortgage counselor. The session must be conducted in person, although sometimes it is possible to take place over phone. Your potential lender may provide you with a list of reverse mortgage professionals who will make sure you understand the whole reverse mortgage idea and you can even discuss alternative financing options. Get ready with your questions before you get to the session to maximize your learning time.

At this stage, should you decide to continue, your non-binding info request becomes an official reverse mortgage application. The lender will determine any additional services and documentation (house appraisal, homeowners coverage, title check, etc.) that will be needed. All the additional services will be carried through and you will be informed about how much you will be able to borrow.

If you accept all the conditions of the loan, you will get appointed date and time to sign the loan papers. After signing, you still get three business days to walk out of the reverse mortgage agreement with no penalty. If you don't you are entitled to receive reverse mortgage funding - payment options should have been discussed with the reverse mortgage counselor.

The scenario described above may differ from lender to lender and state to state, but provides a good idea how the reverse mortgage application works in general.

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