We provide an easy 5-Step Process to obtain a HECM Reverse Mortgage Loan.
Talk with a Banker to find out if a reverse mortgage is right for you and if you qualify. Be sure to discuss your financial needs and goals. We provide the FREE and confidential information you want.
Counseling is required: Reverse Mortgages are an important step for any homeowner, because of this HUD (Department of Housing and Urban Development) requires that all applicants receive third-party counseling to explain all the available options and details. We’ll provide a list of HUD counselors for you to contact. The average counseling fee is $125 and in some states it is free. Price will vary by location.
Decide if a HECM loan is right for you. If so, We’ll help you fill out the application: Now is the time, we’ll work together to help you choose the best type of reverse mortgage for your needs and determine how you’d like to receive your cash from your new reverse mortgage, a line of credit, lump sum, monthly payments or a combination of those. Always consult your financial advisor.
Appraisal and Inspection An appraisal will need to be completed on your home in order to determine the fair market value, make sure it fits within government guidelines, and check for any repairs that may be needed to the home. You might need a structural inspection as well. A fee of $375 – $450 will be assessed to cover the appraiser’s costs. Champion Bank does not make a profit from these appraisal fees; we only charge the minimum amount to cover the cost of the third party appraisal. If you are billed for an appraisal, and then decide not to move forward with the loan and the appraisal has not yet been completed, a full refund will be given. If however, an appraisal was completed on your property, a refund will not be issued. This is because the payment will have already been issued directly to the third party appraiser to compensate them for their out-of-pocket expenses.
Underwriting, Closing and Disbursement: Once we get all of the documents we need from you, we’ll work diligently behind the scenes and finalize all the details of the loan.
We’ll set everything up on our end; and can even come to you with all the final documents to sign. Closing couldn’t be any easier!
As with all home loans, there is a three business day right of rescission. Any debts you’d like included are paid and you can rest assured knowing you’ll never have to make another monthly mortgage payment again.
For the life of the loan, you do not ever make monthly mortgage payments to your lender. You will be responsible for homeowners insurance, real estate taxes and standard upkeep of your home. Reverse Mortgages become due when the borrower(s) no longer occupies the home. If the borrower(s) pass away, the heirs/estate may repay the loan from the sale of the home or refinance of the home. It really is that easy!
Looking for more info? You’re in luck!
Reverse Mortgage 101: Seven Core Questions for Reverse Mortgage Shoppers
For an explanation of Reverse Mortgage 101 click here
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