Common Questions
How does the Reverse Mortgage process work?
Education
Speak with an expert from Reversemymortgageca.com by calling 310-709-5880 to get all of your questions and concerns answered before applying for the program. Your knowledge and understanding of the program is essential to your peace of mind and we intend to make sure you know this program as well as we do.
Initial Application (No Obligation)
Schedule an appointment with our licensed reverse mortgage expert who will work around your schedule to either come to your home or meet you in our office. We will go page by page through the entire application to explain everything. Once the application has been fully explained and all of your questions answered we’ll get you scheduled for counseling.
Counseling
Federal regulations requires that reverse mortgage borrowers receive Reverse Mortgage counseling. Counseling appointments typically take from 30 minutes to an hour and may be handled in-person or over the telephone.
Processing
Once counseling has been completed and we have a copy of your counseling certificate, we will contact an appraiser to inspect your home at no out of pocket expense to you. This will be used to determine the value of your home and will, in turn, determine the amount you qualify to receive from the Reverse Mortgage. We will also research the title to your property to make sure your name(s) is/are the only one (s) on title as well as check to make sure there are no unknown liens or judgments against your property.
Underwriting
After the necessary appraisal and title commitment have been received we will submit your application to underwriting. They will go through our file to make sure we have everything they need.
Closing
Once your reverse mortgage is clear to close we will contact you to schedule a closing date and time. We will meet you at closing to review and sign the final paperwork. After a mandatory three-day period, we will pay off your current mortgage (if you have one), you will receive the money you qualified for, and you will never be responsible for another mortgage payment for as long as you live in the home!!
REVERSE MORTGAGE — FACT OR FICTION
I would need a steady income to qualify.
FALSE — There are no income requirements.
I would need to be debt-free to qualify.
FALSE — There are no credit requirements.
My health would disqualify me.
FALSE — There are no health requirements.
I still have a mortgage, so I wouldn’t qualify.
NOT NECESSARILY — You may still qualify. The proceeds of the reverse mortgage loan may be used to pay off the debts.
If I take out a reverse mortgage, the lender agent will own my home.
FALSE — The lender’s interest is limited to the loan balance and they will NEVER take control of the title. You and your heirs/estate retain ownership of the home.
I can’t get a reverse mortgage loan without it affecting my pension, Social Security or Medicare.
False – A reverse mortgage will not affect these benefits.
HOWEVER, be sure to check with your local area agency on aging since programs can be subject to change.
I would end up owing more in taxes.
FALSE – All proceeds associated with a reverse mortgage are tax-free because they are not considered income.
If the amount of my reverse mortgage loan ever exceeded my home’s appraised value, I’d end up owing money.
FALSE: A reverse mortgages is considered “non-recourse” loan. That means you will never owe more than the home’s value, regardless of the loan balance.
Reverse mortgages are only a good idea for seniors who are cash poor.
NOT NECESSARILY — While some seniors may clearly have greater financial need, a reverse mortgage can be an excellent estate-planning tool for any senior that has substantial equity in their home.
A reverse mortgage would end up being a burden to my kids.
FALSE — Borrowers have between six months to a year to pay off the reverse mortgage if they choose. The loan may be repaid by refinancing the existing reverse mortgage, or by selling the property. Any remaining proceeds would then belong to the heirs, or the estate.