Reverse Mortgage Guide
Processing and underwriting your reverse mortgage generally takes approximately six to eight weeks before you are ready to close. Your closing must be coordinated with many parties, which may include: you, your lender, your attorney, and the title company representative.
Before The Closing — Your home mortgage consultant will help you go through a loan closing checklist to make sure the following items are in order:
- Closing costs and escrow amounts — Your Good Faith Estimate may not include all closing costs such as interim interest or property taxes. You will need to finalize your actual costs with your attorney or closing agent to avoid last-minute surprises.
- Acceptable method of payment — In most cases closing costs may be financed as part of the reverse mortgage.
- Any additional items needed — Some counties require photo ID, evidence of hazard or flood insurance or other miscellaneous documents. This is the time to gather all the paperwork that may be required at closing.
At Closing Time — Reverse mortgage closings typically take place in the home. The loan documents, including the mortgage or deed of trust, are forwarded to you to read and sign as instructed, and pay any applicable closing costs. Any funds disbursements due to you will be forwarded from the processing center shortly thereafter.
After The Closing — As a reverse mortgage customer, you have responsibilities similar to those associated with a traditional mortgage, such as:
- Paying your property taxes
- Keeping your insurance coverage up-to-data
- Maintaining the home