The reverse mortgage generally takes 4-6 weeks to put in place. Here are the basic steps:
- Consultation with a reverse mortgage consultant: This individual runs the FHA software on your situation to provide details on what you are eligible for and the costs associated with obtaining the reverse mortgage.
- Credit counseling: if you feel that a reverse mortgage is right for you, the next step is to set up a credit counseling session with an FHA-approved credit counseling agency. Your reverse mortgage consultant will provide you with a list of counseling agencies to choose from.
- Loan application: one week after you have completed your counseling session you are eligible to begin the application process. Your reverse mortgage consultant will meet with you to go over the application and to collect certain needed documentation, such as your Medicare card and driver license, your home insurance policy, your income documentation and other items, as needed.
- Home appraisal: your reverse mortgage consultant arranges for a real estate appraiser to visit your home to measure and photograph it for the appraisal report. The report is generally completed within a week of home inspection.
- Loan approval: once the appraisal is complete the underwriter will review all documentation and issue a loan approval.
- Confirmation of reverse mortgage terms: at this point your reverse mortgage consultant will obtain any additional information/documents requested by the underwriter and will confirm with you the exact parameters of your loan, including how much money if any you wish to draw at closing, the amount of any monthly distributions, and other details.
- Loan document signing: when your loan closing documents are prepared a notary public will visit your home and manage the signing process.
- Loan closing: once the closing department has ensured that all closing documents have been property executed the loan closes and any funds you requested at close are wired into your bank account.