Reverse Mortgage

Before Your Reverse Mortgage Application

Before completing your application, you must attend reverse mortgage counseling with a third-party, HUD-approved counselor. This must be done before your application is submitted so that the you have a chance to speak with a non-commissioned party before making any decisions about your reverse mortgage. After you have spoken with a reverse mortgage specialist and have decided that you are interested in moving forward, the reverse mortgage specialist must provide you with a list of at least ten reverse mortgage counselors. You can elect to participate in the counseling session in person or over the phone, depending on your preference. To get started, call (877) 221-0493 to speak with a reverse mortgage specialist today!

What the Reverse Mortgage Counseling Session Covers

The session begins with a discussion about the your goals and the reasons why you decided to submit a reverse mortgage application. The counselor then suggests other options that may be available to you. After reviewing these alternatives with the you, the counselor then reviews the terms of the reverse mortgage.

10 Reverse Mortgage Application Aspects Covered In Counseling:

1. The loan is a rising debt loan.
2. When the loan must be repaid.
3. The non-recourse feature.
4. The impact on borrowers and their heirs.
5. How the loan amount is determined.
6. Borrower obligations.
   (taxes, insurance, and home repairs)
7. Financing of closing fees.
8. The title to the home.
9. Potential impact on government benefits.

10 Reverse Mortgage Variable Aspects Covered in Counseling:

1. Eligibility (property and personal).
2. Principal limits vs home value.
3. Disbursement options.
4. Credit line growth feature.
5. Repairs

6. Loan costs and fees
7. Repayment
8. Obligations
9. Tax implications
10. Use of funds

The counselor will then discuss the amount that you could receive from a reverse mortgage, as well as the expected fees for the transaction. The counselor will give you an amortization table for the loan and review the possible future loan values for several different scenarios. This ensures that you are aware of how the reverse mortgage can affect your equity.

When all aspects of the loan have been discussed, the counselor will answer your questions about the reverse mortgage application process, terms, and implications and will provide you with any necessary or helpful literature. Once counseling has been completed, a copy of the counseling certificate must be provided to the reverse mortgage specialist. If you have more questions about the reverse mortgage counseling process, call a loan specialist at (877) 221-0493!