Steps in the Reverse Mortgage Process
Education
You are taking the time now by “surfing” through our website to get information and learn more about this kind of home financing to determine if it is right for you.
Counseling
Reverse mortgage applicants are required to participate in a consumer education session with a HUD-approved counselor. Family members and other advisors are welcome to accompany you. The counselor will explain the legal and financial obligations of a reverse mortgage and discuss other financing alternatives to help ensure you make the right decision. Counseling-session attendees receive a Certificate of Borrower Counseling, which is valid for 180 days. You must present this certificate to us as proof that you have fulfilled the counseling requirement.
Application
Your Consumer Equity Reverse Mortgage Expert will help you complete and sign your reverse mortgage loan application. Shortly after the application is submitted, as required by federal Truth-in-Lending Act, you will receive a disclosure that outlines your total estimated loan cost.
Appraisal
A professional FHA/HUD appraiser will be contracted to determine the value of your home, and this will be used to calculate the amount you can receive from your reverse mortgage.
Homeowners Insurance
Before your reverse mortgage closing, you will be required to show proof you have purchased insurance that covers losses due to fire, theft, or natural disasters. If you already have homeowners insurance, make sure your policy is up to date, payments are current and you have the minimum amount of coverage required for this program.
FHA Mortgage Insurance
Mortgage insurance will also be required to close your reverse mortgage. This will ensure that the amount required to repay your loan will never exceed the value of your home when payment is due. Your initial FHA mortgage insurance premium can be financed as part of your reverse mortgage loan amount. Ask your Consumer Equity Reverse Mortgage consultant for further details.
Title Insurance
There are two types of title insurance. One protects the lender and one protects the borrower. Together, the coverage protects you and your lender from claims against ownership of the property, which might be made by:
• Undisclosed spouses
• Heirs of previous owners
• Creditors holding liens against previous owners
• Or other parties
You will be required to purchase a title policy that covers your reverse mortgage lender’s interest in the property. The decision to purchase a policy that protects your interest is up to you. Your Consumer Equity Reverse Mortgage Expert can recommend several title insurance companies you can contact for additional information about policies available in your area.
Closing
Processing and underwriting your reverse mortgage generally takes approximately three to four weeks before you are ready to close. Your closing must be coordinated with many parties, which may include: you, your lender, your attorney, and the title company representative. Rest assured Consumer Equity will make this a seamless process!
Before The Closing — Your Consumer Equity Reverse Mortgage Expert will help you go through a loan closing checklist to make sure the following items are in order:
• Closing costs and escrow amounts — Your Good Faith Estimate may not include all closing costs such as interim interest or property taxes. Your actual final closing costs will be discussed with your Consumer Equity Reverse Mortgage Expert
• Acceptable method of payment — Closing costs may be financed as part of the reverse mortgage.
At Closing Time — Reverse mortgage closings typically take place in the home. The Consumer Equity Reverse Mortgage Expert will be available at the closing either in person or on call. Loan documents, including the mortgage or deed of trust, are forwarded to you to read and sign as instructed, and pay any applicable closing costs. Any funds disbursements due to you will be directly deposited/wired and forwarded to your chosen bank account.
After The Closing — As a reverse mortgage customer, you have responsibilities similar to those associated with a traditional mortgage, such as:
• Paying your property taxes
• Keeping your insurance coverage up-to-date
• Maintaining the home
Please keep in mind if you have any questions whatsoever, do not hesitate to contact your Consumer Equity Reverse Mortgage Expert or even the company’s President to answer any of your questions-
That’s the Consumer Equity difference!
You are taking the time now by “surfing” through our website to get information and learn more about this kind of home financing to determine if it is right for you.
Counseling
Reverse mortgage applicants are required to participate in a consumer education session with a HUD-approved counselor. Family members and other advisors are welcome to accompany you. The counselor will explain the legal and financial obligations of a reverse mortgage and discuss other financing alternatives to help ensure you make the right decision. Counseling-session attendees receive a Certificate of Borrower Counseling, which is valid for 180 days. You must present this certificate to us as proof that you have fulfilled the counseling requirement.
Application
Your Consumer Equity Reverse Mortgage Expert will help you complete and sign your reverse mortgage loan application. Shortly after the application is submitted, as required by federal Truth-in-Lending Act, you will receive a disclosure that outlines your total estimated loan cost.
Appraisal
A professional FHA/HUD appraiser will be contracted to determine the value of your home, and this will be used to calculate the amount you can receive from your reverse mortgage.
Homeowners Insurance
Before your reverse mortgage closing, you will be required to show proof you have purchased insurance that covers losses due to fire, theft, or natural disasters. If you already have homeowners insurance, make sure your policy is up to date, payments are current and you have the minimum amount of coverage required for this program.
FHA Mortgage Insurance
Mortgage insurance will also be required to close your reverse mortgage. This will ensure that the amount required to repay your loan will never exceed the value of your home when payment is due. Your initial FHA mortgage insurance premium can be financed as part of your reverse mortgage loan amount. Ask your Consumer Equity Reverse Mortgage consultant for further details.
Title Insurance
There are two types of title insurance. One protects the lender and one protects the borrower. Together, the coverage protects you and your lender from claims against ownership of the property, which might be made by:
• Undisclosed spouses
• Heirs of previous owners
• Creditors holding liens against previous owners
• Or other parties
You will be required to purchase a title policy that covers your reverse mortgage lender’s interest in the property. The decision to purchase a policy that protects your interest is up to you. Your Consumer Equity Reverse Mortgage Expert can recommend several title insurance companies you can contact for additional information about policies available in your area.
Closing
Processing and underwriting your reverse mortgage generally takes approximately three to four weeks before you are ready to close. Your closing must be coordinated with many parties, which may include: you, your lender, your attorney, and the title company representative. Rest assured Consumer Equity will make this a seamless process!
Before The Closing — Your Consumer Equity Reverse Mortgage Expert will help you go through a loan closing checklist to make sure the following items are in order:
• Closing costs and escrow amounts — Your Good Faith Estimate may not include all closing costs such as interim interest or property taxes. Your actual final closing costs will be discussed with your Consumer Equity Reverse Mortgage Expert
• Acceptable method of payment — Closing costs may be financed as part of the reverse mortgage.
At Closing Time — Reverse mortgage closings typically take place in the home. The Consumer Equity Reverse Mortgage Expert will be available at the closing either in person or on call. Loan documents, including the mortgage or deed of trust, are forwarded to you to read and sign as instructed, and pay any applicable closing costs. Any funds disbursements due to you will be directly deposited/wired and forwarded to your chosen bank account.
After The Closing — As a reverse mortgage customer, you have responsibilities similar to those associated with a traditional mortgage, such as:
• Paying your property taxes
• Keeping your insurance coverage up-to-date
• Maintaining the home
Please keep in mind if you have any questions whatsoever, do not hesitate to contact your Consumer Equity Reverse Mortgage Expert or even the company’s President to answer any of your questions-
That’s the Consumer Equity difference!
