http://www.texasreverse.net/

http://www.texasreverse.net/

Carver Communications - Index

Carver Communications - June152009 - Index

June 15, 2009 REAL ESTATE NEWSLINE 15
By Melinda Hipp
Legacy Mutual Mortgage
Reverse Mortgages -
A Step-by-Step Guide
A reverse mortgage is a good source
of income for seniors. The government
does not tax the funds received, and the
borrower is free to use the money in the
way he/she likes.
Reverse mortgages are only available
to people who are 62 years or older,
and the transaction must be done on the
borrower's primary residence. There is no
limit to how many reverse mortgages a borrower
may have in their lifetime, however a
borrower may only have one reverse mortgage
at a time. If a borrower has a reverse
mortgage, and the borrower can gain additional
benefit from a new reverse mortgage,
a borrower may obtain a streamline refinance
of their reverse mortgage at a substantially
reduced cost.
Getting a reverse mortgage involves
a number of simple steps designed to assure
that the lender is in full compliance and to
provide the borrower with various safeguards.
Here are the steps you can expect
when applying for your reverse mortgage:
Education: A very important first
step is to receive a thorough explanation of
how a reverse mortgage works, and specifically
how the terms of the loan will apply
to you. Some of this information you can
obtain from various publications, however
nothing can replace a face to face meeting
with a qualified reverse mortgage advisor.
Since HUD, not the lender, regulates the
interest rates, loan amounts, terms and fees,
the one area for you to shop around is for
the lender with the greatest level of knowledge
and experience with reverse mortgages.
There are many well-meaning mortgage
lenders, with some understanding of
the program, however selecting a lender
that specializes only in reverse mortgages
can make a great deal of difference in how
well they can educate you and how simple
they can make the rest of the process.
Counseling: Once you are satisfied
that you have a good understanding of the
program, and generally feel this may be a
good program for you, the next step is to
receive free independent counseling from a
certified, HUD-approved counselor to
make sure that you have had all your questions
answered and that there's been no
confusion. It's a protection device that the
government has built into the process of
obtaining a reverse mortgage.
Application/Disclosure: Once you
have completed your counseling, and have
confirmed that a reverse mortgage is the
right decision for you, your loan advisor
will meet with you to complete your application,
discuss the options of how you want
to receive your funds, and obtain copies of
a small list of documents needed for your
underwriting file. During this meeting a
good reverse mortgage advisor will go back
over the critical information, and provide
you with complete disclosure of all the
information that applies to your transaction,
including rate information and a full
disclosure of fees associated with your
loan.
Appraisal and Title: Once your
loan application is complete, your lender
will order an appraisal and a title search on
your home. The appraiser will contact you
for a convenient appointment time to view
your home, and a full appraisal report will
usually be provided within a few days.
Underwriting: Once the appraisal
and title report are complete, the file will be
sent to a HUD approved underwriter who
will verify the accuracy of the information
in the file, and assure that the borrower has
received complete disclosure about their
loan. The underwriter will underwrite the
appraisal and title, request any clarification
necessary, and issue a clear-to-close status
on the file. This step does not take as long
as a standard “forward” mortgage as there
are no income, asset or credit verifications
to be concerned about.
Closing: Once the underwriter has
issued the clear to close, your loan advisor
will contact you to reconfirm how you want
your funds set up, and will arrange a convenient
date and time for the closing. After
signing the loan documents, you will have
a three day right-to-cancel. On the first
business day following the expiration of the
3 day right to cancel, the title company will
disburse funds as requested and record all
the documents with the county in which
your property is located.
Repayment: The homeowner does
not make any monthly mortgage payments
to lender during the life of the loan. The
loan is repaid when the homeowner ceases
to occupy the home as a principal residence.
The loan may be repaid by the
homeowner or the heirs/estate, with or
without a sale of the home. The repayment
obligation can't exceed the home's value or
sales price.
Reverse mortgages provide a safe
secure solution for seniors to live out their
life in the comfort of their own home with
the peace of mind and dignity they deserve.
For more information please contact
Melinda Hipp, Reverse Mortgage
Specialist with Legacy Mutual Mortgage at
(210) 492-4900 or melinda@legacymutual.com
You can also visit her website for
more information www.texasreverse.net