Step by step
What to Expect From Your First Conversation to Closing
If you're considering a reverse mortgage, it's natural to wonder what the process looks like.
In brief
While every homeowner's situation is different, the overall process follows a series of straightforward steps. Along the way, you'll have opportunities to ask questions, review your options, and make sure you fully understand how the loan works before making any commitments.
Our role is to guide you through each stage, explain what's happening, and make the process as clear and comfortable as possible.
Every reverse mortgage begins with a conversation.
We'll take time to learn about your goals, your current mortgage, your retirement plans, and what prompted you to begin exploring your options.
This is also your opportunity to ask questions.
We'll explain how reverse mortgages work, discuss whether they may fit your situation, and answer any questions you have about the loan, your home, or the process itself.
There is no obligation to move forward after this meeting. Some homeowners simply want information, while others are ready to begin the application process. Either approach is perfectly fine.
If you'd like to continue, we'll review the basic qualifications for the available loan programs.
This typically includes information about:
- Your age
- Your home
- Existing mortgage balance
- Estimated home value
- Occupancy of the property
- Your ability to meet the ongoing responsibilities of homeownership
This early review helps determine which loan options may be available before moving further into the process.
Not every reverse mortgage looks the same.
We'll explain the programs that may be available to you and discuss how you would like to receive your loan proceeds.
Depending on your situation, you may be able to receive funds as:
- A lump sum
- Monthly payments
- A line of credit
- A combination of payment options
We'll also review the estimated loan amount, discuss costs, and explain your ongoing responsibilities so you have a complete understanding before making any decisions.
For many reverse mortgage programs, an independent counseling session is required before the loan can move forward.
This counseling is conducted by a counselor approved by the U.S. Department of Housing and Urban Development (HUD) who is not affiliated with your lender.
The purpose is to ensure you understand:
- How the loan works
- Your responsibilities as a homeowner
- The costs involved
- Possible alternatives
- Questions you should consider before proceeding
Many homeowners appreciate this step because it provides another opportunity to ask questions in a neutral setting.
Once counseling has been completed, you'll receive a certificate confirming your participation.
Once you've decided to move forward, we'll complete the loan application and begin gathering the documentation needed to process your file.
Depending on your situation, this may include documents related to:
- Identity
- Homeownership
- Existing mortgage information
- Income or financial information, if required
- Property taxes and homeowners insurance
We'll let you know exactly what's needed and help you through the process.
An independent licensed appraiser will evaluate your home to determine its current market value.
The appraisal is an important part of the lending process because it helps establish the amount of equity available and confirms that the property meets applicable lending guidelines.
Once the appraisal is complete, we'll review the results with you and explain how they affect your loan.
During underwriting, the lender reviews your application, supporting documentation, appraisal, and other required information.
Sometimes additional documentation or clarification is requested. This is a normal part of the process and doesn't necessarily indicate that there's a problem with your application.
We'll keep you informed throughout underwriting and help you respond to any requests as quickly as possible.
Once your loan receives final approval, we'll schedule your closing.
At closing, you'll review and sign the final loan documents. We'll explain each document, answer any remaining questions, and make sure you understand what you're signing before anything is finalized.
We encourage borrowers to take their time and ask questions throughout the closing process.
After closing and any applicable waiting periods have been completed, your loan proceeds will be made available according to the payment option you've selected.
Depending on your loan, that may include:
- Paying off an existing mortgage
- Receiving a lump sum
- Beginning monthly payments
- Establishing a line of credit
- A combination of available options
From that point forward, you'll continue living in your home while meeting the ongoing obligations of the loan, such as paying property taxes, maintaining homeowners insurance, and keeping the home as your primary residence.
How Long Does the Process Take?
Every loan is different, so timelines can vary.
Factors such as scheduling the counseling session, completing the appraisal, gathering documentation, and underwriting all play a role in determining how long the process takes.
During your consultation, we'll provide an estimated timeline based on your circumstances and keep you informed as your loan progresses.
No obligation, no pressure
We're Here to Guide You Every Step of the Way
A reverse mortgage isn't something you apply for every day, and you shouldn't be expected to navigate the process alone.
Whether you're just beginning your research or you're ready to move forward, we'll take the time to explain each step, answer your questions, and help you understand what to expect from start to finish.
Our goal is to make the process as straightforward and transparent as possible so you can make informed decisions with confidence.
