Step by Step

The Reverse Mortgage Process

For homeowners age 62 or older, a reverse mortgage offers a way to convert some of the equity in your home into cash.

The funds can be used in multiple ways, including supplementing your income, paying for a large expense, or preparing for future needs. As you explore your reverse mortgage options with Pacific First Financial Real Estate Loans, Inc. will serve as your guide throughout the entire loan process. Here’s a basic overview of what you canexpect:

1. Education

One of our experts will contact you to:

  • Carefully assess your individual needs and financial situation. This includes reviewing your income, assets and expenses; talking with you about your particular plans and concerns; and estimating how much money you may qualify for.
  • Thoroughly explain the eligibility factors, benefits, features, options, costs and borrower obligations associated with reverse mortgage products.
  • Answer all your questions, and help you determine if a reverse mortgage is the right solution for you — and if so, which type best fits your needs and goals.
  • Prepare you for your reverse mortgage counseling session.

2. Independent Counseling

To ensure that you understand all aspects of a reverse mortgage, you’re required to have a counseling session with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). It usually takes about 60 to 90 minutes and can be done in-person or over the phone. (Some states require face-to-facecounseling.)

3. Application

  • If you decide to proceed with the loan, your loan officer will help you complete the application and collect your documentation. Some of the required documents are:
    • Your signed counseling certificate,
    • Photo identification,
    • Verification of Social Security number,
    • Recent property tax bill,
    • Proof of homeowner’s insurance and
    • Existing mortgage bill (if applicable).
  • A required financial assessment will review your finances, specifically your credit history, income and debts. This helps determine whether the borrower will need to set aside part of the mortgage proceeds—based on the results of the financial assessment—to pay for loan obligations.* Your Loan Officer will let you know exactly which documents you’ll need to provide.
  • A notary or lender representative will come to your home to assist you in signing your application and will also collect all of the supporting documents.

4. Processing Approval

Your loan officer will submit the paperwork and we’ll process your application. We’ll order a home appraisal, which determines the exact value of your home. We’ll also order title work and existing mortgage payoff amounts. An underwriter will then review the application forapproval.

5. Closing

  • When the final loan documents are ready for your signature, we’ll contact you to schedule your loan closing, which can take place at your home.
  • Any existing mortgage(s) must be paid off with a portion of  the proceeds from your reverse mortgage. After the closing and any applicable rescission period, the loan will fund and you’ll receive your money.

*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. This material is not from HUD or FHA and has not been approved by HUD or any government agency. Equal Housing Opportunity. This material is not from HUD or FHA and has not been approved by HUD or any government agency.  

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