Reverse Mortgage Process in Fresno & SLO County

Consult with a Professional

Speak with a reverse mortgage originator to find out if a reverse mortgage is right for you! For a free no-obligation consultation, contact Katie. She can explain the details and process easily, either in your home or over the phone. Katie can also send you an information package with a personalized easy to read quote. 

Counseling

If you have decided you would like to proceed with a reverse mortgage, before doing so, all borrowers must complete the required HECM counseling. Your reverse mortgage loan originator will give you a list of FHA approved counseling agencies to contact for an appointment. The counseling may be done over the phone or in person. Once counseling is completed, you will receive a HECM Certificate, allowing you to proceed with the FHA Insured Reverse Mortgage application. The certificate may be emailed or faxed to your preferred loan originator by the counseling agency.

Loan Application

An application may be filled out with the assistance of a loan originator in the comfort of your home. All borrowers must complete the application. Your loan originator will let you know what documentation is required in addition to the application. During the application process, you may select the payment plan you are desiring.

Processing Applciation

Once your loan originator has received the completed application with required documentation, escrow and title will be ordered. An appraisal is ordered to determine the value of your home and if there are any needed repairs. A credit report is ordered to determine current liabilities and monthly obligations and willingness to satisfy these obligations. Credit scores are not used in determining qualification.  


The appraisal management company will contact the homeowner to schedule an appointment for the home inspection. The appraiser is looking to see if there are any needed repairs or defects on the residence. If there are repairs needed, you may pay for these repairs using the reverse mortgage proceeds. Depending on the type of repair, contractors will be paid at closing or a repair set-aside will be established for work being completed after close.


Once all reports are received, all documentation with your application are submitted to underwriting for their review. This process usually takes about 1 week.

Underwriting

Once underwriting has completed their review of the application, the loan originator will receive a conditional loan approval. The conditional approval may require further documentation from the borrower, appraiser or title.


Once all conditioned items have been received and cleared by underwriting, they will give us a clear to close your loan. At this time, your loan originator will contact you to schedule an appointment to sign the final loan documents. 


A mobile notary and your loan originator will meet with you to sign the final loan documents. After signing the final documents, you have a three-day rescission period. This is a time to review all loan documents and security instruments before the final funding and closing of your loan. If so desired, you may cancel during this rescission period and cancel the contract.

Closing Reverse Mortgage

Once your loan funds, it will record with your county's recording office usually the next day. Once recorded, escrow will disperse and wire any funds to your checking account which you have requested as an upfront draw. Any liens on the property will also be paid off at this time.


After your loan has closed, you will receive a welcome package from your loan servicer within 30 days.  The servicer will provide you with their contact information as well as credit line request forms. Dependent on your payment plan, you may begin to receive monthly payments within the following month. The payment should arrive the first business day of the month. (If direct deposit is set up).  If you have a credit line, you may access funds at anytime by submitting a written request. Once the request is received, the servicer will wire funds to your preferred account within 5 business days. Your loan servicer will also send you a statement of your account, monthly or bi-monthly. This is not a bill, but rather information on your account, including your current loan balance and available funds to draw on.




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