Reverse Mortgages Home What are Reverse Mortgages? Who is eligible for them? Types of Reverse Mortgages Why choose Reverse Mortgages Paying back Reverse Mortgages Questions to ask lenders Their disadvantages Reverse Mortgage requirements Origination and MIP Fees Dealing with closing costs The process of getting one What is the HECM? Appraisal Fees Servicing Set-Aside The Process: Getting Reverse Mortgages   Getting and paying off reverse mortgages are comprised of approximately nine different steps. These steps range from learning about the mortgages to paying off your own mortgage. We will quickly walk you through each of these steps.   1) Awareness- The first step to getting a reverse mortgage is learning about the program from the Internet, the news, or a friend. Since you’ve made it to this page, you have already completed the first step to getting your reverse mortgage. Congratulations!   2) Action- The homeowner begins to seek more information by contacting their present lender or another reverse mortgage lender.   3) Mandatory Counseling- The interested homeowner seeks counseling from a government-approved counselor. The counselor provides extra information and helps the homeowner decide which loan is best for them. After receiving a certificate proving that they have been counseled, the homeowner can now move on to the next step.   4) Application / Disclosure- The homeowner completes a loan application and selects payment options. The lender discloses the estimated cost of the loan and collects money for the home appraisal. The homeowner also provides all pertinent personal information (Social Security Number, copy of deed, etc.).   5) Processing- The lender will order the appraisal and all other requirements. After the appraiser comes to your home, he will report to the lender and you will be given a number or asked to do repairs to your home.   6) Underwriting- After the lender receives all the needed information, the final plans for repayment are completed with the home owner. The loan package is then submitted to the underwriting department to receive final approval; this part of the process can take anywhere from 4-8 weeks.   7) Closing- After the loan package is approved, the closing is scheduled. Final interest rate information is calculated and the final papers and numbers are prepared. Closing costs are generally financed as part of the loan, so the homeowner just has to come in and sign the papers.   8) Disbursement- After signing the papers, the homeowner has three business days to cancel. After this time, the funds are disbursed in the form of payment decided upon by the homeowner.   9) Repayment- The homeowner doesn’t make monthly payments during the life of the loan, but the loan is repaid after the homeowner ceases using the home as a principal residence. At this time, the loan is repaid by the owner or the heirs/estate, whether or not the home is sold. The repayment amount cannot exceed the home’s value.