Understanding the Process

Becoming Informed
This is where you are right now, and it is one of the most important steps that you can do. Because you are taking the time to learn about a reverse mortgage, let us help you determine if it is appropriate for you. Give us a call, we'd like to talk to you.

Counseling
As part of the reverse mortgage application process, you are required to seek counseling with a HUD-approved counselor. This may be conducted face-to-face or by telephone. We can provide you a list of names and phone numbers of HUD counselors in your area.
The counselor will provide you with an explanation of the legal and financial obligations of the program as well as any alternatives that you may have. In addition, you will be given a certificate of completion that you will present to the lender as proof that you have completed your counseling consumer education session.

Application
Your Reverse Mortgage Professional will sit down with you and help you complete and sign the loan application. Then the homeowner selects a payment plan, whether fixed monthly payments, lump sum payment, line of credit, or a combination of these. Once you have submitted your completed application, you will receive a disclosure for the estimated total cost of the loan, as required by Federal Truth in Lending Act.

Processing
A professional appraisal will be used to determine the value on your home. The appraiser makes sure the physical condition of the property meets FHA guidelines. This appraisal will be used to calculate the amount you can receive with your reverse mortgage.

Underwriting
After receiving all documentation, we go through all the normal processing to submit the loan package for final approval. It takes approximately 4-8 weeks (sometimes sooner, sometimes longer) to underwrite a loan package.

Closing
Once approved, the signing (closing) of the loan is scheduled. Interest rates are calculated. Closing papers and final figures are prepared. You then have 3 days in which you can cancel the mortgage if you change your mind.

Disbursement
Once your closing is completed, the process is over and you will receive your money. As your dedicated loan's servicer, Generation Mortgage will manage your account and disburse monthly payments (if this option is chosen), advancing line of credit funds upon request, collecting any repayments on the line of credit, and sending periodic statements.

After the Closing
You have responsibilities with a reverse mortgage that are similar to those associated with a traditional mortgage.

You are expected to:

• Pay property taxes on time
• Keep adequate property insurance up-to-date
• Maintain the home in good repair