You have gone past the very first step toward getting approval for a reverse mortgage loan.
Catostore Home Loans would like to thank you for your interest in applying for a reverse mortgage loan. You shall receive acknowledgment of receipt of application via the email address which you provided us with. You may check your inbox in a few minutes.
We will be processing the assessment and evaluation of your qualifications for a reverse mortgage.
For now, allow us to walk you through the process in the event that you make the cut and get your reverse mortgage application approved as well as what you should expect during the actual steps in the process.
The application process for a reverse mortgage usually takes up to 45 days at the maximum from the initial steps to the actual closing.
It is commonly believed that the average reverse mortgage applicant takes months over months thinking through getting a reverse mortgage until arriving at an affirmative final decision.
How about you? Are you one of these typical reverse mortgage applicants? Did it also take you a considerably long period of time before deciding on filling out and completing the reverse mortgage application form which you just submitted to us at Catostore Home Loans?
The very first step in the process which you have just successfully completed.
With you submission of reverse mortgage application, you are legally giving us the office permission and authorization to start with the application process. You are rest assured that this initial phase amongst the procedures will not require you in any way to pay any costs, charges and other forms of fees.
In fact, you may withdraw your application should you change your mind along the way during this initial step of the process. However, it will be best for you to carry on with the application and find for yourself what benefits will be in store for you once you are approved for a reverse mortgage.
This then brings us to the next segment which will discuss the next step of reverse mortgage application processing.
Going through a reverse mortgage counselling is mandatory as required by the federal government before you can ever obtain a reverse mortgage.
You will be speaking with reverse mortgage counsellors who are employed by government-accredited and independent housing counselling agencies. It will be during the reverse mortgage counselling when you will gain more knowledge and better understanding of this type of mortgage.
You will be educated on how much reverse mortgage will cost you and what consequences and benefits will await you.
Your reverse mortgage counsellors will also assist you in exploring all options that there may be available for your specific individual situation. Anchored on honesty and transparency, your counsellors will set forth and thoroughly explain to you every little detail involved in reverse mortgage.
So, are you going to be charged for the reverse mortgage counselling?
The answer is yes. Reverse mortgage counsellors do ask for professional services fees. However, if it will not be within your means to pay them, you can always find a reverse mortgage counsellor who will be willing to be of help while waiving any fees for the services.
Be sure to ask all the questions which you may have in mind and to clarify anything which you may have some troubles getting your head around.
To reiterate, this second step in the application process cannot be skipped. Reverse mortgage counselling is designed, implemented and imposed in your best interest. It will particularly be very useful for applicant who may not be well-versed with mortgages and financial matters in general.
After which, you will need to sign and submit an Housing Equity Conversion Mortgages (HECM) counselling certificate which will serve as a proof that you have completed the necessary counselling sessions with a counselling agency accredited by the Department of Housing and Urban Development (HUD).
The appraisal process is basically placing a current market value on your residential property.
Aside from assigning a value to your home, the appraiser will also be responsible for ensuring that there are no severe structural damages in your house such as shaky, poor foundations, termite destructions, or leaky roofing system.
The reason for this is because under the federal rule of law and housing regulations, your home which will be on reverse mortgage is expected to have structural durability and sturdiness. Your home should also comply with every housing safety code. Meeting these requirements will most likely get you a reverse mortgage.
However, in the event that the appraiser finds some major damages in your house, then you will need to hire professional contractors to perform the necessary repairs. You should hire contractors or technicians who particularly specialize in repairs and replacements accordingly depending on which segment of the house.
Thereafter, you can expect another visit from the appraiser for another round of assessment and evaluation of your home.
The underwriting will involve the confirmation of your legal ownership of the residential property to be subjected to reverse mortgage. A title search and the purchase of title insurance will be conducted as well.
It is also during the underwriting wherein we will be working with you to smooth over any issues with trusts and to iron out any tax liens clouding the title of the property and the possible existence of back taxes.
Upon the conclusion of the underwriting process and the final approval of your application for a reverse mortgage, the status of application will be modified from “clear to close.” This means completion of the application process. We will then schedule for the closing date when you will sign the final closing documents with a lawyer.
It is very important to review these closing documents prior to affixing your signature. Ensure that all the details on the documents are accurate especially the digits such as the interest rates, loan amounts, and other fees.
You will be given a three-day right of rescission during which you will have the right to retract your application despite the final closing. Cancellation of application for reverse mortgage within this period will still be free of any penalty fees.
We guarantee that you will benefit a great deal from your decision to get a reverse mortgage.
Additionally, if you are confident that you have high chances of getting approved for a reverse mortgage, then you must be right about your decision and so stay positive about your application. For now, you may just take it easy while awaiting for your application approval.
Once again, thank you for choosing to apply for a reverse mortgage with us at Catostore Home Loans.