The Loan Process, Initial Meeting
It is important to meet with an experienced reverse mortgage professional. I highly recommend working with someone that specializes in reverse mortgages as they can better educate you about the product, answer questions and understand the intricacies of the reverse mortgage better than those that dabble in this product.
During this initial meeting is your opportunity to ask questions about the product as well as an opportunity to learn more. There is typically quite a bit of fact finding going on as well. The loan officer is trying to understand what your current financial situation is, what problems you are currently facing or will be facing in the future and how the reverse mortgage could be used or structured to best meet your needs. And finally, all the relevant numbers and interest rates for your loan can be calculated.
During this initial meeting, a reverse mortgage analysis is usually generated that covers your loan options, fees and potential outcomes of the reverse mortgage.
The reverse mortgage analysis packet contains quite a bit of information which should include the following:
- Frequently asked questions
- Various charts
- Loan options
- Amortization schedule
- Fee sheet
- TALC sheet
- List of HUD counselors
- Preparing for your HUD counseling
- Using Your Home to Stay at Home booklet from the National Council on Aging
Do not hesitate to meet with your loan officer as many times as necessary. It is important that you understand the reverse mortgage and the benefits it is providing to you. I have met with clients multiple times with each meeting being several hours. Any professional will be more than happy to spend as much time with you as is necessary to make sure all your questions are answered.
If you decide that the reverse mortgage makes sense, your next step will be to schedule counseling. Once you have completed your counseling, you will receive a Certificate of Counseling. Once you have received your certificate you can begin the loan application process. From here on out the process is the same as with a traditional forward mortgage.
As far as how long the process will take it really depends on how long it will take to get an appraisal.