(678) 517-3353
Common Questions
How does the Reverse Mortgage process work?
Education
Do your research. Read up on reverse mortgages as much as you can. Talk to your local Better Business Bureau (BBB) and your local American Association of Retired Persons (AARP) about the process and the lender. The AARP Foundation Reverse Mortgage Education Project includes a national network of reverse mortgage counselors dedicated to helping seniors understand and evaluate the risks and benefits of reverse mortgage borrowing.
Counseling
Federal regulations and Georgia law requires that reverse mortgage borrowers receive HUD-approved certified housing counseling. While this counseling is mandatory, there are some agencies that can charge a fee of up to $125. Depending on the current federal spending budget, there may be government grant money available at different times and the service can be free of charge. Counseling appointments can be completed over the phone and typically runs about 1 hour 45 minutes long. Following successful completion of your counseling, you actually get a certificate of completion form HUD which your lender must have to be able to move forward with your reverse mortgage.
Loan Application
You must complete the required paperwork which will provide the necessary information for your reverse mortgage to be processed and underwritten before receiving final approval.
Processing
Processing
On your behalf, we will order:
- An FHA case number
- A mortgage credit report
- A title report
- An FHA appraisal
- Payoff order for current liens
Underwriting
Once we have received the required documentation, your loan package will be submitted to our HUD-approved lender for final approval. Turn around and a clear to close can be done in as few as 4 days, in some cases.
Closing
After receiving final approval, the loan's interest rate will be locked and closing docs ordered. It is typical for the closing costs to be financed by the reverse mortgage funds and rolled into the loan.
Disbursement
Once you have officially closed your reverse mortgage, you have 3 business days to change your mind if you'd like because of Georgia's 3-day right of rescission law. There is no penalty for this. Otherwise, atter the 3-day period, your funds are disbursed, including any amount that must be used to pay off a previous lien against the property.
Repayment
You will not be required to make any monthly payments during the term of your loan. The reverse mortgage only becomes due and payable when:
1) the home is no longer being used as a primary residence by at least one borrower on title
2) More than 50% of title is conveyed or the home is sold
3) All borrowers have passed away.
At this time, the loan may be repaid from the sale proceeds of the home or by separate refinancing. All remaining equity goes to the heirs/estate.
1) the home is no longer being used as a primary residence by at least one borrower on title
2) More than 50% of title is conveyed or the home is sold
3) All borrowers have passed away.
At this time, the loan may be repaid from the sale proceeds of the home or by separate refinancing. All remaining equity goes to the heirs/estate.
What can I expect to learn from my housing counseling?
HUD-accredited housing counselors work with you to help them evaluate the viability of a reverse mortgage loan by looking at the borrower's:
- Current budget
- Monthly income
- Current forward mortgage risks
- Reverse Mortgage loan benefits
- Interest rates of either or both mortgages
- Understanding of the Reverse Mortgage program
- Reason for wanting the reverse mortgage
HUD-approved HECM housing counselors are required to use loan comparison and analysis software that meets the requirements established by the AARP. Certified counselors must also adhere to the AARP Foundation Reverse Mortgage Education Project counseling policies and procedures. Because it is their job to help make sure you are making a responsible financial decision, they may also review other financial options with you.
The AARP Foundation Reverse Mortgage Education Project regulates a national network of HUD-approved HECM housing counseling agencies by administering the exam that certifies counselors for HUD-approved HECM housing counseling agencies. HUD's National HECM Counseling Network consists of the exam's highest scoring counselors. That means that that you can be sure that they are prepared and ready for looking out for your best interest.
GA License #29757
Reverse Mortgage...Forward Thinking
(678)-530-0511
GA License #29757
Reverse Mortgage...Forward Thinking
(678)-530-0511
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