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The Process

Reverse mortgages are a valuable tool for adults over the age of 62 to use the equity in their home to cover the rising cost of living or unexpected bills. It's important to understand the entire process and not miss any of the details. Therefore, having a mortgage broker who has your best interest in mind is of utmost importance. Patrick Kerwin has dedicated his career to help seniors in Dallas, TX. 

Research and Build Awareness

A reverse mortgage is a way for older Americans to convert some of their home equity to pay off their current mortgage, if they still have one, and create more cash flow to cover everyday expenses, home renovations, medical expenses and other needs and goals. It’s different from any other kind of mortgage because you don't have to repay what you borrow until you leave the home or do not comply with the loan terms. You are still responsible for maintaining the home and paying all property taxes and homeowners insurance, as you would with a traditional mortgage. Borrowers could be subject to foreclosure for reasons including failure to maintain the property or to pay taxes and insurance.

Check Eligibility Guidelines

After Counseling

Once you and your counselor are comfortable that you understand how a reverse mortgage loan works and how it compares to all your other home equity alternatives, your counselor will issue a Certificate of HECM Counseling, verifying for your lender that you have successfully completed your counseling. Only when your lender has received your certificate and all other required information, will it submit your application for processing and underwriting review.

Your projected loan amount will largely depend on the value of the home (minus any liens against it), the age of the youngest borrower or eligible non-borrowing spouse, and current interest rates. 

To determine home value, an independent, licensed appraiser will conduct an appraisal, factoring in your home’s conditions, comparable sales in the neighborhood, etc. Then the completed appraisal will be submitted to processing and underwriting as part of your loan package.

If the home valuation, processing, and underwriting process leads to an approved loan, you will sign final loan documents at the loan closing and confirm how you wish to receive disbursement of your loan proceeds.

Disbursement Options

Because no two situations are alike, you have various options for receiving your reverse mortgage loan proceeds. To determine which type of reverse mortgage disbursement plan might work best for you, connect with an AAG reverse mortgage professional who can walk you through

all of your loan options. You also have the option of mixing some payout plans for added flexibility.

Lump Sum Payout: 
Take the proceeds in one lump sum, a strategy to pay off large expenses.

Term or Tenure Payout
Receive fixed monthly payments to supplement your income.

Growing Line of Credit
Establish a growing line of credit that you can tap into when needed.

 

 

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