How To Apply

How the reverse mortgage process works

1. Initial Application

The application legally authorizes the lender to begin the application process but the lender cannot incur any costs on your behalf until Step 2 (counseling) is completed. The application is not binding and can be canceled at any point during the process. The application will specify the reverse mortgage fees, interest rates, and loan amounts.

2. Counseling

Even though the application has been completed, the lender is not legally permitted to incur any costs on the applicant’s behalf (such as ordering the appraisal) until the applicant has submitted a signed HECM Counseling Certificate. This is proof that the applicant has completed the mandatory counseling session with a HUD-approved counseling agency. The counseling can be completed before or after the initial application in most states.

3. Appraisal

The appraisal establishes the legal value of the applicant’s property. The reverse mortgage appraisal must be conducted by an FHA-approved appraiser (not all appraisers have this approval) and it must follow a specific FHA format. This means that even if a homeowner has already had an appraisal, it will most likely have to be re-appraised at this point in the process.

4. Underwriting

The lender will confirm the applicant’s legal ownership of the property by conducting a title search and purchasing title insurance. They will also work with the applicant to clear up any issues with trusts, unpaid liens against the title, bankruptcies, etc. Once the lender has finished underwriting and has approved the application, it’s status will be changed to “clear to close”. This means that everything has been completed and the final closing date can be set.

5. Closing

The lender and the applicant set a closing date where a notary or attorney meets with the applicant to sign the final closing documents. This is the applicant’s opportunity to review the closing documents to make sure that the interest rate, fees, and loan amounts are the expected amounts. Once signed, the application goes into a three-day ”right of recission” period; except when a reverse mortgage is used for a purchase, then there is no recission period. This means that even though the closing has taken place, the applicant can still cancel the application with no penalty for three business days after the closing.Immediately after this waiting period, the title company will issue a check to the homeowner (typically by overnight mail) if proceeds are available from the reverse mortgage. If the applicant was using a reverse mortgage to pay off an existing mortgage, the title company will also send the mortgage payoff amount to the lender.

Testimonials

The Reverse Mortgage is not only nice, IT’S ESSENTIAL! With expenses going up we were able to add what we would have spent on our house payment to our monthly budget.

Mrs. Hughes

Nampa, ID

Working with Kyle Buck made the difference in getting our loan done!

Ed

Emmett, ID

I have lived in my home for 15 years and was going to lose it to foreclosure. Working with Kyle saved my home and now I can live here as long as I want without the financial stress of making another house payment.

Jerry

Montana

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Info – © 2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity.”

Reverse Mortgage – *This is a loan that must be repaid. Borrower(s) must be 62 years of age, are responsible for property taxes, homeowners insurance, maintenance of home, HOA dues and must be primary residence. Eligible non-borrowing spouse may be under 62. These materials are not from HUD or FHA and this document was not approved by the Department or Government Agency.