You’re interested in a reverse mortgage, have done your research and decided on a lender. Now, you are asking, “What is the next step?” It’s the application. Below are the steps involved and the information that may be requested by your lender to complete the application process.
What is the Reverse Mortgage Application?
The application grants permission to your selected lender to begin the loan process; however, no costs can be incurred on your behalf until the Department of Housing and Urban Development (HUD) counseling is completed. At this point, the application is not binding and can be canceled at any time during the process.
Communicate with Your Lender
Before the application, it is recommended that you discuss your options with your reverse mortgage lender to ensure that you are eligible for the loan. Some of the standard questions will be regarding your age, credit history, income, and home equity, which will determine your eligibility.
Next, your lender will discuss your financial situation and goals with you. They may inquire about the reason you are considering a reverse mortgage, they will explain how the loan works and provide various options to help you reach your retirement goals.
Provide Required Documentation
Once you are ready to apply for a reverse mortgage loan, your lender will send you an application to complete and will ask you to provide some documentation:
Once the application has been completed, you will send it back to your lender. They will also request some additional items, such as:
Do you have additional questions about the reverse mortgage application process? Call 1-800-976-6211 to speak with a licensed loan advisor to help you get started.