Reverse Mortgage Process
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Note: As of February 1, 2021 We can close reverse mortgages in Colorado, Nebraska and Tennessee. More states are forthcoming.
What is the referring loan officers role?
As little as a name and number
Provide us the prospects name, contact information and quick description why you think a reverse is right for them.
We will handle all communications and the entire process
You will still get a referral fee.
What if i want to do more?
Absolutely You can!
and you will receive a referral fee as well!
What can I do for the borrower?
- Work with them on initial application via Blend, Via Encompass or via a hand completed 1003
- Pull their credit
- Gather documents
- Attend and coordinate meetings to go over documentation. A reverse professional will attend meetings alongside you via phone, zoom and / or in person as possible or desired
- Continue to represent Loan Simple with the borrowers in person
- Handle all followups
- Attend Closing
We will work together throughout the process
let us know your desired level of involvement
what is the process?
The entire process are in the steps that follow:
- Cultivate the Client and Pre-Qualify them for Eligibility
- Application via Blend, Manually via Encompass or Manual 1003
- Pull the borrowers credit
- Gather Documents
- Most recent two years 1099’s or W2’s
- Social Security Award Letter
- Any Pension Documentation
- Driver’s Licenses or other non-expired State or Federal ID for all borrowers
- Most recent 60 days of bank statements
- Statement of Account for HOA (if any) showing 24 months of dues with NO LATES.
- Homeowners Insurance Policy / Declarations Page
- Current Mortgage Statement (if any)
- Credit Card Authorization form for Appraisal Costs and HOA documentation (if required)
- Any, and all, trust documents (if required)
- Any, and all, Power Of Attorney (POA) documents (if required)
- IF A POA EXISTS PLEASE TALK WITH US IN PERSON FIRST ABOUT THE SPECIAL REQUIREMENTS REGARDING POWERS OF ATTORNEY.
what are the eligibility requirements?
- One Borrower Must be 62 years of age or older
- We must have a completed 1003, either via Blend, Encompass or by hand
- Consent and Authorization must be given
- We must pull the credit of all persons on the loan
- Spouse MUST be on the loan and Title
- If they are in a community with an HOA they must show 24 months of being current on their HOA Dues
- They MUST NOT be behind on their Property Taxes
- They MUST NOT be behind on their Homeowners Insurance
- They will be responsible for paying
- Their annual Homeowners Insurance
- Annual Property Taxes
- Any yearly or monthly HOA dues.
- REMEMBER There are NO ESCROWS
What is required of the borrower?
- Understanding the Reverses can be a long and complicated process with lots of documentation
- Completed Application
- Approval to Pull Credit
- All requested / required documentation
- Signed Proposal Packet
- Complete a Reverse Counseling Class
- Send the completed counseling certificate to us
- Signed Application Packet
- Attend and Sign Closing
- NOTE: ALL SIGNINGS, INCLUDING CLOSING, CAN BE DONE SAFELY AT THEIR RESIDENCE WITH COVID PROTOCOLS IN PLACE.
What can be done with a reverse?
There are many ways to leverage a reverse mortgage. Here are the primary ones:
- Home Purchase
- Refinance with Cash Out at closing
- Refinance with Cash Out at closing AND a Line of Credit
- Refinance with Cash Out at closing AND a monthly draw (called a tenured payment)
- Refinance with Line of Credit Only
- Refinance with Line of Credit and Tenured Payment
- Refinance with Tenured Payment Only.
how are amounts available determined?
There are two ways the eligibility amounts are determined.
- Age of Borrowers
- Appraised Value of Property
If there is/are existing mortgage(s) that/those will be paid first and the remaining equity will be used to determine amounts available for Cash out, Line of Credit and/or Tenured Payments.
pay for the appraisal
We will obtain a credit card authorization form and will charge the appraisal on this card. The amount varies and currently all Reverse Appraisals Can be exterior only if the borrowers prefer.
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