Reverse Mortgages Step by Step
 Step 1. Awareness
The homeowner learns about the Reverse Mortgage program through a newspaper article, advertisement, word of mouth, etc.
Step 2. Action
Step 4. Application
The homeowner fills out the application and selects the payment option: Monthly payments for life, credit line or lump sum payment.
The homeowner contacts a Reverse Mortgage Advisor get all of the information they will need to decide if a Reverse Mortgage is right for them.
Step 3. Counseling
Third party Counseling is mandatory and must be provided by a HUD approved agency. The counselor explains different options available to the consumer
Step 5. Processing
Step 6. Underwriting
After receiving all pertinent information and data, lender finalizes loan parameters, packages loan and submits for underwriting and final approval.
The loan is approved and the final signing is scheduled. The initial interest rate is calculated. Closing costs are normally financed into the loan. Closing papers and final figures are prepared and signed by the homeowner.
Step 7. Closing
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The homeowner has three business days after closing to cancel the loan. After this period the funds are disbursed. The
loan has repaid any previous debts on the property and the homeowner begins receiving payments according to their selected option.
Step 8. Disbursement
Step 9. Repayment
Lender processes loan, orders appraisal (to determine value of home) title report, lien payoffs and credit report. If the appraiser uncovers structural defects, repairs are required following the closing of the loan.
The homeowner doesn't make any monthly mortgage payments to lender during the life of the loan. The reverse mortgage becomes due and payable upon; the death of the borrower, the sale of the home, or the homeowner no longer uses the home as a primary residence.
Upon the death of the borrower, the heirs/estate may repay the loan from the sale of the home and cash out on the remaining equity, or refinance the home.
Click here to apply now.
501 Mission Ave.
Oceanside, CA 92054
Toll-free: 1-800-351-7026
Phone: 760-966-3640
Fax: 760-966-3658
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