- Stage 1: Initial Consultation – This is the first step of the process where you discuss your goals and finances with a reverse mortgage lender. This person will help you determine whether a reverse mortgage is right for you and the amount you may qualify for.
- Stage 2: Counseling – Next, the applicant must undergo an independent counseling session, which usually lasts for an hour or two, to ensure that the applicant understands the responsibilities and implications of a reverse mortgage.
- Stage 3: Application and Disclosure – After the initial consultation and counseling, the applicant will complete an application and submit supporting documents such as proof of income, medical expenses, and insurance policies.
- Stage 4: Appraisal – During this stage, an appraiser assesses the value of the property to determine how much it is worth and how much the borrower can borrow.
- Stage 5: Underwriting and Closing – Once the appraisal is completed, the loan goes into underwriting where the lender reviews the information provided and decides whether to approve the loan. When approval is granted, the lender sets a closing date at which the borrower will receive the funds and sign all necessary documents.
Getting a reverse mortgage involves a series of steps, each of which requires attention to detail and sufficient processing time. The timeline for completing this process may vary depending on several factors such as the complexity of the applicant’s financial situation, and the responsiveness of the appraiser and title company. However, on average, expect the process to take between 30-45 days. Here’s a closer look at each stage of the process: