Reverse Mortgage Process

Most loan officers come from a sales background so their laser focus in the initial conversation is if you qualify for the loan.  Some will then try to “close” the sale in that initial conversation and push to arrange a meeting or mail you a 100+ page proposal.  Remember that most of the companies/loan officers earn a small fortune on every transaction ($10,000-$20,000), so they have a strong incentive to persuade you to move forward.  Consequently, it is important to proceed in a way the you are comfortable and not let other parties dictate the timeline.

Alternatively, Mr. Sanchez prefers to have a conversation, often a long conversation, before asking you to sign anything or send your confidential financial documents. Once he understands your situation, he can talk about ALL the options. Typically, at the end of the conversation you will know exactly the preferred option & how to move forward.  For those that don’t have any viable choices, they will know the hurdles and how to overcome them.

The following is a summary of our typical steps:

  • Telephone Discussion & initial evaluation/analysis
  • Joint decision on how to proceed
  • Reverse mortgage forms to facilitate the required counseling my accredited agency
  • Complete counseling by telephone or in person
  • Document gathering (including credit report)
  • Refined analysis using the information gathered
  • Face to face or telephonic meeting to discuss the refined analysis
  • Loan application package presentation & signing
  • Preliminary processing of the signed package by the loan processor
  • Open escrow and order the title insurance policy
  • Order and completion of the property appraisal
  • Gather additional documents as necessary
  • Submit completed loan package to lender’s underwriting department for approval
  • Underwriter reviews package and provides loan approval with conditions (“conditions” are to do’s for the parties involved in the transaction)
  • Loan processor and loan officer gather documents to satisfy the conditions
  • Those additional documents are submitted to the underwriter so the approval can be updated
  • Interest rate is locked
  • Final loan documents are prepared and sent to escrow
  • Escrow arranges signing by the borrowers and returns the signed documents to lender
  • The lender reviews the signed documents and signs off any remaining conditions
  • The lender schedules funding of the loan
  • The title company receives funds and coordinates with escrow the recording of certain documents with the County
  • Escrow disburses funds to all parties