Many times, seniors come to me after they have exhausted all of their other resources and they do not know what else to do. They are looking for a way to make retirement a little easier and take the financial stress out of it.
I see seniors who are surviving on crackers and water who do not have enought money to make it to payday. I see seniors who have to decide to put food on their tables or to buy their medications. I see seniors who want to travel a bit and see the world, but have no money. I see seniors who need to get their cars fixes, houses fixed, and many other things. The thing that most of them have in common is that they have no money.
Their house is their only asset. Many have small mortgages or none at all. They are great candidates for a reverse mortgage.
Once they decide to go forward the first question they want answered is,
"How long will it be before my reverse mortgage is in place?"
As there are no absolutes in lending, I will do my best to give you an honest time-frame of what it looks like from start to finish:
1. Counseling: Each senior is required to go through reverse mortgage counseling. Once they have their counseling completed, we have to wait 7 business days before we can order an appraisal.
2. On the 8th business day, we order the appraisal. Usually takes 2-3 days to get an appointment. Sometimes seniors need to get some things fixed on their homes before the appraiser comes out. In which case, ordering the appraisal may be delayed.
3. The appraisal will most likely be received by our office within one week. Assuming that no repairs need to be completed on the property we can move to step 4.
4. Loan is sent to underwriting, usually this takes 2 days and then sent back to the loan officer with any additional items that are needed. Depending on how long it takes to get these things back is how long it will take to get to step 5.
5. We get the clear to close. Closing is then scheduled for 2-3 days after this.
6. Loan documents are signed at the closing.
7. Three day right of recision allows the borrowers to back out of the loan up to three days after signing the closing documents. On the third business day, the loan has officially closed and funded.
So as you can see, best case scenario is roughly 25-30 business days. If there are problems you are looking at closer to 45-60 days.
If you have any questions about getting a reverse mortgage or you would like to be pre-qualified, please contact me directly at 559-994-3692 in Fresno or 800-779-1851 anywhere else in California.
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