Reverse Mortgage Process

The Process of Getting a Reverse Mortgage Loan

The certified reverse mortgage specialists of the Smart Team will take the time to make sure you are informed about the features and benefits of a reverse mortgage for your particular situation.  We promise to guide you through every step of the process to customize options to fit your plans. 

#1 EDUCATION

Meet with one of our Certified Reverse Mortgage Professionals (CRMP) on the Smart Team to decide if a reverse mortgage is the right fit for you or a loved one. You will learn about how much you may qualify for and receive a complete analysis of your particular situation.

#2 COUNSELING

All reverse mortgage borrowers are required by HUD (Department of Housing & Urban Development) to complete reverse mortgage counseling with a HUD-approved, independent third-party counseling agency. During your consult with The Smart Team, we will provide you with a list of counselors from which to choose. Counseling is most often provided over the phone but our list will provide you with local agencies as well for face-to-face counseling. You should receive 3 certificates of completion: one for your records, one to sign & send to the counselor, and one to sign & send to our office.

#3 ACTION/APPLICATION

The Smart Team can meet with you in our office or in the convenience of your home. We will guide you through the application & disclosures while answering any questions that may arise. You will receive a complete copy of ALL documents for you and your family or trusted advisor to review.

#4 FINANCIAL ASSESSMENT

To help ensure the long-term success of the reverse mortgage loan program over time, HUD requires a review of each applicant’s credit history, property tax payments, & other credit factors. These will be evaluated to determine the borrower’s willingness and financial capacity to meet the ongoing obligations of the HECM loan.

#5 APPRAISAL

Once counseling is completed & the application is signed, we will order an appraisal. This fee is paid by the borrower. Reverse Mortgages use a full FHA appraisal. The value of your home is based on what comparable properties in your neighborhood have sold most recently.

#6 PROCESSING

The Smart Team (your lender) will start processing your paperwork. What this means is we will order the appraisal, title report, and order any payoffs for any liens/mortgages that are required to be paid at the time of closing. We will also verify your income & other credit factors. We will be in contact with you every step of the way so you always know what is going on with your loan.

#7 UNDERWRITING

Once the processing & appraisal are complete, we send your loan to the underwriter for loan approval. During this time we may ask for further documentation from you if the underwriter requires it for final approval.

#8 CLOSING & FUNDS DISBURSED

Once your loan has been final approved by the underwriter, we will contact you to confirm your closing details & arrange the signing of your closing documents.