The Process

Education Before setting an appointment, we advise that you learn as much as you can about reverse mortgages. Please call us to order a free information packet or visit one of the following websites. National Reverse Mortgage Lenders Association AARP U.S. Department of Housing and Urban Development California Department of Aging National Care Planning Council Set an Appointment Contact Bay Area Reverse Mortgage to schedule a free in-person or phone consultation to discuss your options. Counseling For your protection, the federal government requires free third party HUD- approved counseling for reverse mortgage applicants. For your convenience, counseling can be done face-to-face or over the phone.

By law, your counselor will review the following information:

• Options other than a reverse mortgage, that are available to you, and the borrowing, including housing, social services, and health and financial alternatives.

• Additional home equity conversion options that are or may become available to you, the prospective borrower, such as property tax deferral programs.

• The counselor will discuss with you the financial implications of entering into a reverse mortgage and the tax consequences affecting your, the borrower's, eligibility under state and federal programs and the impact on the estate and heirs.

Source: National Reverse Mortgage Lenders Association

Application/Disclosure
After counseling, your application is completed and you select a payment plan. All disclosers are presented to you including an itemization of the estimated closing costs for the loan.  You must furnish the lender with all required information, including copies of your social security card(s), deed of trust, and the counseling certificate.

Processing/Underwriting
An appraisal is required; it determines the lending limits. The appraisal will be billed to you, the borrower(s), at closing. The condition of the property must meet FHA guidelines. If any structural defects are found, you, the borrower(s) must hire a contractor to complete the required repairs.  Once all supporting documentation and conditions are in, the lender will finalize the loan parameters and submit the loan package for final invester approval.  This process can take 3-6 weeks.

Closing
Once the loan is approved, the loan consultant will make arrangements with the borrower(s) to sign all loan documents. The loan documents may be reviewed and signed at the borrowers' home using a notary public or at the assigned title company. Your Bay Area Reverse Mortgage loan consultant will be with you to answer any questions.

Disbursement
The borrower has three business days after signing loan documents to cancel the loan. Once the three days expire, the loan funds are disbursed into the borrower's bank account as a direct deposit or sent as a check from the lender to the borrower. Any existing mortgage or debts are paid off and a new lien is recorded by the escrow company.