At HomeStreet Bank, our goal is to make the process of getting your Reverse Mortgage as easy as possible. We have been an FHA approved lender for 75 years and our experienced loan officers will be right beside you every step of the way to guide you through the process.
1. Meet with a loan officer, make application and complete counseling
Once you discuss your options with a Loan Officer, we’ll ask you to complete an application to get the official process started. We’ll guide you through filling out the paperwork and deciding how you want to receive the proceeds from your reverse mortgage. Your options include:
- Receive disbursement upfront in a lump sum, and the balance as a line of credit Receive equal sums of money for a fixed period of time (months, or years), in term payments
- Choose to receive equal sums over a period of time (like term payments), until you are no longer occupying the home, with tenure payments
- Use the proceeds as a line of credit, withdrawing funds as you need them.
- Or you can even combine more than one of these options. For instance, take some of the funds up front in a lump sum or set them aside in a line of credit, and spread the remainder out over time with either term or tenure payments.
Early in the process it’s understandable that you may not know which option is best for you. That’s where our experienced Reverse Mortgage Loan Officers come in. They’ll discuss your retirement goals and dreams with you to help determine which option suits your lifestyle and financial needs best.
Also, as part of the application process, the U.S. Department of Housing and Urban Development (HUD) will require you to attend a third-party counseling session. In this session (approximately an hour long, although times may vary), you’ll learn about all the available options and details of a Reverse Mortgage. Your Loan Officer will provide you with a list of counselors for you to choose from.
2. Home Appraisal
After you’ve made application and completed your counseling session, the next step is to get your home appraised. The appraised value of your home, the amount of your home equity, current interest rates, and the age of the youngest borrower will be used to determine the size of reverse mortgage that you are eligible for.
3. Loan Closing and Funds Disbursement
Once your loan paperwork has been reviewed and approved by an underwriter, it will be time for the loan to close. We’ll arrange a time and place for the closing– we can even come to your home with the documents for you to sign.
Federal law requires a waiting period before we disburse your funds, giving you an opportunity to cancel the transaction. Once the waiting period is over and your funds are disbursed! It’s that easy!!
For the life of the loan, you do not have to make payments. However, as discussed previously, you remain responsible for expenses associated with the upkeep of the home, including the payment of taxes, insurance, and home maintenance. A Reverse Mortgage only becomes due when the borrower(s) no longer occupies the home as their primary residence. In the event of death, your heirs may repay the loan from the sale of the home or refinance the home and keep it in the family.