The Reverse Mortgage process is simple and easy when working with Fairway Independent Mortgage. We'll be upfront with the program, time frames, required documentation and closing date. The initial step starts with you and your family in evaluating if this is the right decision for you or not. What are your expenses, time frame to live in the home, is everyone on board with the decision? We'll gduide you through the steps of the application, counseling phone call, documentaion needed, appraisal process and the processing, closing and receiving funds.
You may have heard about the reverse mortgage loan on TV, on the radio, online, by receiving a mailer, or you did your own research.
Meeting with a qualified Mortgage Loan Originator is key. This is where you learn about your specific numbers, what you qualify for, and receive an analysis of your particular situation.
Counseling is required from an independent third-party, HUD-approved counseling agency, for all reverse mortgage borrowers. Typically this fee is paid by the borrower. Consult with your Reverse Mortgage Loan Originator and make sure you complete this as soon as possible. Many times counseling can be completed over the telephone. You will receive two certificates; one to keep and the other to send to our office.
Action / Application
Meet with your Mortgage Loan Originator and decide if a reverse mortgage is right for you. Our reverse mortgage professionals may meet with you at our office or your home or by phone to help guide you through the application. You will be left with a complete copy of ALL the documents for you and your trusted advisors (i.e. CPA or attorney) or family member(s) to review.
To help ensure the long-term success of the HECM loan over time, HUD requires a review of each applicant’s credit history, property tax payments and other credit factors that will be evaluated to measure a borrower’s willingness and financial capacity to meet the ongoing obligations of the loan.
Upon receiving your HUD counseling certificate we will contact you to arrange for an appraisal of your property. The appraisal is paid by the borrower. Reverse mortgages use a full FHA appraisal. The value of your home is based on what comparable properties in your neighborhood have sold for recently.
We (the lender) will begin to process your paperwork. This process includes the appraisal, title report, and checking the balance of any liens/mortgages to be paid. Also, verification of income and other credit factors are gathered at this time. We will be in contact regularly during this time.
When the processing and all paperwork is complete, we forward your file to the loan underwriter to determine if the loan will be approved and will work to satisfy any conditions/requirements needed to close the loan.
Closing & Funds Disbursed
If your loan has been approved by underwriting we will contact you to arrange for the signing of your final loan documents. At this time we will confirm your payment plan or partial lump sum (how you want to receive your money). Once you’ve signed the closing documents you have three business days to cancel the loan if you should choose to do so. After the cancellation (rescission) period has passed your funds are distributed based on the payment option you chose at closing. HECM for Purchase loans do not have a rescission period. See HECM for Purchase Guideline for more information.
I've heard too many stories from people that have started the process with other companies that started with an out of state phone call and then confusing steps and lack of communication drag on to make the process overwhelming to people. My goal is to ease the stress in the process with clear communication. I believe everyone deserves the retirement they've always dreamed of and a Home Equity Conversion Mortgage can be the perfect piece to the puzzle to make that happen!