The Reverse Mortgage Process: What to Expect

Reverse mortgages are a way to tap into your home’s equity without having to sell your home. It’s a financial tool that older homeowners can use in their retirement to reach a variety of financial goals such as funding major home renovations, buying a new home, or simply having more peace of mind by having access to more funds to cover unplanned expenses. 

Homeowners don’t qualify for a reverse mortgage loan until age 62, which also means that obtaining a reverse mortgage is a new process they are not typically familiar with.  

If you are ready to move forward with a reverse mortgage, here is an overview of the reverse mortgage process that you can expect.  

Reverse Mortgage Loan Steps 

Step 1: Meet with a Reverse Mortgage Advisor 

The first step in obtaining a reverse mortgage loan is talking to one of our experienced reverse mortgage advisors. They will help you understand your options, how much you can expect to receive from a reverse mortgage, and answer any questions you may have about your specific situation. They will also help guide you through each step of the process.  

Step 2: Complete a Counseling Session  

Before you can officially file an application for a Home Equity Conversion Mortgage (HECM), you will first need to complete a counseling session with a third-party counselor approved by U.S. Department of Housing and Urban Development (HUD). 

This counseling session typically takes approximately 90 minutes to complete and can be done over the phone or in person. Family members are welcome to join you for this session. The purpose of this counseling session is to go over the pros and cons of a reverse mortgage and to help you make sure that you are making the right choice for your needs.  

Your reverse mortgage advisor will give you a list of counselors you can choose from.  

Step 3: Submit Your Application 

Once you complete the counseling session and you are ready to move forward, you may submit your application. The reverse mortgage advisors at Mutual of Omaha Mortgage will help you with this process and make sure that you have all the necessary paperwork filed.  

Step 4: Get an Appraisal and Order Title Report 

Before your reverse mortgage loan application can be processed, an appraisal will be ordered and completed. This is an important step in the process because it will be used to determine the current market value of your home.  

During this step, a title report will be ordered to make sure that there are no tax liens on the home.  

Step 5: Processing by Underwriting  

Once the appraisal is complete, the title report is ordered, and the application is submitted, underwriting will begin processing the application and relevant documentation. In some cases, they may request additional documents. If this happens, your reverse mortgage advisor will reach out to you and let you know what they need.   

Step 6: Closing  

Once the application has been approved, a closing date will be scheduled. You will be able to sign the closing documents in the comfort of your own home with the help of a mobile notary service or in person at the title company. 

Step 7: Receive Your Funds 

After you sign the closing documents, there will be a waiting period that will last for three business days before you will be able to receive your funds. After the waiting period is over, funds will be disbursed according to the method or methods that you chose during the application process.  

Reverse Mortgage Process Bottom Line 

The reverse mortgage advisors at Mutual of Omaha Mortgage are committed to moving the application process forward as quickly as possible and making it as painless as possible, but please note that in some cases the reverse mortgage loan application process can take up to 45 days.  

If you are ready to get the process started, reach out today.  

Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. 

This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement.