Picture this… you’re a senior homeowner and nearly every time you get to your mail box, you get 1-5 solicitations for a reverse mortgage. You keep all the postcards and letters handy in the event you decide to make a decision to proceed with a reverse mortgage. You’re starting to become familiar with a lot about the program just from all the direct mail pieces you might have received. Your phone is starting to ring almost daily with reverse mortgage telemarketers. You hear the buzz on the news and with your pals that reverse mortgages have created. You see TV commercials with Robert Wagner, James Gardner, and Pat Boone among many others. You now have a stack of solicitations higher than three La phone books and your interest has peaked. You know you want to start to look into reverse mortgage Medford OR but you don’t know what steps are involved or how to you proceed with a reputable company? Yes you do have countless mail pieces, but what company will truly offer the finest service and best fee structure.
The above mentioned scenario is quite common. The complete reverse mortgage process can be very overwhelming for some people. Your decision of what company to pick to the process itself may cause lots of seniors would you greatly take advantage of a reverse mortgage to change a shoulder and not even explore the idea. Fact is, using the right reverse mortgage lender, a reverse mortgage may perfectly function as the easiest transaction lots of seniors have been an event to.
Step one would be to pick a reputable company. Look towards relatives and buddies who could have received a reverse mortgage. In case you are not aware of those who have received a reverse mortgage, or perhaps you friends or family didn’t have a very good experience with their reverse mortgage professional, check out NRMLA (National Reverse Mortgage Lenders Association). Individuals NRMLA have subscribed with their code of ethics and definately will always deal in a professional manner with their senior clientele.
When a reverse mortgage company or broker is chosen, it’s time for you to start to learn more about reverse mortgages. The initial conversation you may have with a reverse mortgage professional will generally be to assemble important information from you like birthday, property address, home value, existing amount borrowed and more importantly the reverse mortgage professional will explore along with you why you’re looking into a reverse mortgage to assist determine if it’s the right decision to suit your needs. At this time over time, you and the advisor will talk about how much money is available to you in addition to each of the fees involved. They will also give you a quote on paper that will contain 4 items. 1. Reverse Mortgage Estimates page, which shows an assessment of three programs. 2. An Excellent Faith Estimate that shows a breakdown of all the fees involved. 3. An Amortization Schedule that shows the way the loan balance grows as time passes. 4. A TALC (Total Annual Loan Cost), which shows the cost of the financing as time passes.
Now, after the first discussion, this is a great time for you to discuss the reverse mortgage with friends, family or even a trusted advisor. They may likewise have questions for your reverse mortgage professional and it’s a smart idea to ask them to touch base to ensure that all questions are thoroughly answered.
Next, if you decide to proceed, you will have to undergo a counseling session carried out by a completely independent alternative party counselor. Counseling costs typically $125 and is also due during your counseling session. If you have a hardship and can’t pay it off upfront, please notify your counselor. Your reverse mortgage professional should supply you with a list of a minimum of 5 counselors that are inside the proximity of your property. This counseling session can be done over the phone, or perhaps in person. In your counseling session, the counselor will evaluate the 4 items which the reverse mortgage professional sent you earlier. The counselor will ensure you understand the reverse mortgage program along with other alternatives to reverse mortgages.
After counseling is done you will obtain a counseling certificate in the mail. You will have to sign it and return it for your lender or broker. When the lender or broker provides the certificate, then the process can continue. Another stages are just like any other mortgage. The financial institution will order an appraisal, title report and open escrow. In the mean time, the reverse mortgage professional is going to take a full application by you, in both person or over the phone, that takes about 10 minutes. Just a side note, the financial institution can take the applying before your counseling session, however there might be nothing carried out by the lender that will incur an expense for you prior to counseling. When the lender has brought the application, it will likely be delivered to you for signatures. Another point out note the following is that signing the application form fails to obligate one to carry out the reverse mortgage. You could back out at any time over time along the way for whatever reason. Connected to the application will be a set of items necessary for the lender including verification of your own social security number, a picture ID, a copy of your mortgage statement (for those who have a mortgage), copy of your own trust (if applicable), copy of the Power of Attorney (if applicable), copy of the homeowners insurance declaration page, etc. All you need to do is sign and return the requested items specific to your loan scenario.
If the lender receives all items by you, the appraisal, title report and then any other necessary items, the loan will be published to underwriting. During this stage, the underwriter looks at the file and will make a determination if some other items will likely be necessary. In that case, they let the lender know, who in turn will notify you of the additional items needed. Once those items are met, the underwriter will issue a precise to seal.
After a clear to seal status has been received, you will receive a call from your reverse mortgage professional verifying how you want to receive your loan proceeds along with setting up a time to sign one last loan documents. When it comes time for you to sign you final loan documents, most lenders sends someone to your house to achieve this task.
Following the loan documents are signed, they may be delivered back to the lender for final review. After your three day right of rescission is up, if all outstanding items have been met, the lending company will fund the loan. When the loan funds, title will kbfshn a wire through the lender. They disburse the funds as requested and release the loan to record using the county. Then you certainly are free of charge to experience your loan proceeds however, you see fit. Your task following the loan closes is two fold. One, enjoy life for the fullest and two, spread the term about reverse mortgages to the people the person you feel could gain benefit from the product. Oh yeah, should your reverse mortgage professional did an excellent job, you can refer him/her to your family and friends.