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Reverse Mortgage Process from Start to Finish

Initial Consultation:

First, you should meet with a qualified reverse mortgage professional. This gives you the opportunity to find out the maximum amount you qualify for, and a detailed analysis of your property and loan. You can also ask any questions you have, including what the advantages and disadvantages of a reverse mortgage.


Counseling from a HUD approved 3rd party is mandatory before any additional steps can be taken in the reverse mortgage process. Counseling can be obtained in person, or over the telephone. Your reverse mortgage professional will provide you with a list of counseling companies in your area.


Simultaneously with counseling an application and disclosures will be prepared for your signature. At the same time as you sign the application and required disclosures, you will be given a complete copy of every document for your records, and to share with any professional advisors (attorney, CPA, financial planner) you choose.


After obtaining your counseling and completing the application process, an appraisal of your home will be completed. Your reverse mortgage professional will arrange, through an independent appraisal management company, for an appraiser to contact you to set up a date and time for an inspection of your home. Normally the cost of the appraisal is paid by you at the time is it ordered. The average cost of an appraisal is $450.00. It is a full interior appraisal that must meet Federal Housing Administration (“FHA”) guidelines and regulations.

If there is something in your home that you know needs repairing, don’t worry – most repairs can be made using proceeds from the loan.


After the appraisal is completed, your loan will be sent to an underwriter to verify the required documentation and that the appraisal meets FHA guidelines.

Loan Documents and Closing:

After approval from underwriting, your loan documents will be drafted and prepared for your signature. The closing agent or escrow officer will arrange a time for you to sign the documents before a notary public. After you have signed refinance loan documents (not a purchase loan) by federal law you have 3 business days to rescind (i.e. cancel) the loan. After the 3 day period has elapsed, the lender will fund your loan proceeds to the account of the closing agent or escrow, which in turn will pay off any required items with the remainder, depending on the payment option you choose, being paid to you.