Counseling

The lenders will start the process after the applicant has submitted the mandatory HECM Counseling Certificate.

Application

The application contains fees, interest rates and loan amounts that the borrower should review multiple times. The application is not binding and the borrower can cancel anytime before closing.

Appraisal

A reverse mortgage appraisal has tough requirements because it is required to be completed by an FHA approved appraiser with the specific documents. A reverse mortgage appraisal should be around $500.

Underwriting

The lender will do a title search and work with the borrower to make sure there are no problems with trusts, unpaid liens and bankruptcies.

Closing

It is mandatory that a notary or attorney be present at the final signing with the borrower. The borrower should look at the disclosures one last time to make sure that all the numbers are still the same.

After the signing the borrower has a three day “right or rescission” in which they can cancel the application with a penalty fee. The homeowner will then receive a check from the title company.