Got questions about reverse mortgages? You’ve come to the right place! Our blog series Ask the Pros is your inside track to unlocking your home equity and making informed decisions for your financial future.
In this series, we’re pulling back the curtain and bringing you wisdom straight from our team here at Longbridge Financial. Our professionals aren’t just familiar with reverse mortgages—they’re shaping the industry every day. From tackling common questions to breaking down complex topics, they’re here to give you clear, practical answers based on their wealth of experience.
Whether you’re a homeowner exploring your options, a financial advisor looking for new insights, or just curious about how reverse mortgages work, this series has you covered. We’ll bust myths, explain the details, and share smart strategies for making the most of your home equity in retirement.
In this installment of Ask the Pros, Nelly Argento, Director of Retail Operations for Longbridge, shares her insights into the important documents you’ll need when applying for a reverse mortgage. Nelly knows that having the right paperwork in order is key and she helps us understand what you’ll need and why they matter—plus, her tips for making the process go smoothly! Let’s jump into the Q&A!
Q: What documents are needed when applying for a reverse mortgage loan?
A: Applying for a reverse mortgage involves gathering several key documents—many of which you might already have on hand. If you’ve ever applied for a traditional mortgage or refinanced your home, some of this should feel familiar! Think of it as pulling together the paperwork that tells the story of your home, your finances, and your identity.
When you work with Longbridge as your lender, your dedicated reverse mortgage consultant will be by your side every step of the way to guide you through the application process and beyond, and that includes help you to gather the necessary documents. If you’re looking to get a jumpstart, here’s a helpful checklist to help you get started:
- Personal identification (such as a driver’s license, state-issued ID, or passport)
- Income verification (typically a Social Security award letter and your most recent 1099 form, or a bank statement showing the deposits)
- Proof of homeowner’s insurance (usually the declarations page)
- Current mortgage statement (if you have an existing mortgage)
- Copy of Power of Attorney and/or trust (if applicable—be sure to include all pages)
- Evidence of military service (if applicable—and as a bonus, Longbridge Financial offers a discount for eligible veterans!)
- Death certificate (if you had a deceased spouse and their name is on the property title)
Your reverse mortgage consultant will be sure these documents, combined with your signed application and counseling certificate, are submitted successfully. Having these documents ready at the outset can help keep your application moving forward smoothly!
Q: Are there other documents required later in the loan process, like at closing?
A: By the time you reach closing, the heavy lifting is usually done—but there are still a couple of items you’ll need. At the closing table, be prepared to provide the following items:
- Unexpired personal identification (like your driver’s license or passport)
- Voided check (to set up direct deposit for your loan proceeds)
During the loan processing phase, the underwriter may request additional documentation. For example, if there are any credit concerns, you may need to provide “Extenuating Circumstance” documentation to determine if your loan will require a Life Expectancy Set-Aside (LESA). This could include receipts or records for unexpected expenses such as medical bills, home repairs, or caregiving costs.
And keep in mind, if more documentation is needed, don’t panic! It’s just part of ensuring the loan meets all guidelines, is tailored to your specific financial situation, and sets you up for success. Plus, your Longbridge reverse mortgage consultant will be with you every step of the way—answering questions, clarifying requests, and helping you navigate the process smoothly.
Q: Do you have any tips or tricks for making the process as smooth as possible?
A: Absolutely! There are a few smart steps you can take to make the reverse mortgage process as smooth and stress-free as possible.
First, consider getting pre-qualified prior to your appraisal. This simple step can save you both time and money by identifying any potential hurdles upfront, such as meeting financial assessment or income requirements. If you have credit concerns, you can also request a pre-appraisal underwrite. This proactive approach allows us to review your credit history before ordering the appraisal, which can provide clarity and help you plan ahead—especially if there are any signs that a LESA may be required.
It also helps to do a walkthrough of your home (over the phone or in-person) with your reverse mortgage consultant. This informal review can identify any health or safety issues that may need to be addressed before the appraisal inspection. Taking care of these minor fixes early can prevent delays later in the process. Additionally, be aware that in some cases, a second appraisal may be required, so being prepared for this possibility can help set the right expectations.
Another key tip is to respond promptly to any documentation requests. If the lender needs additional information, providing it quickly helps keep your loan on track and moving forward without unnecessary delays. And once your loan closes, it’s a good idea to touch base with your reverse mortgage consultant. They can help you set up your online account and walk you through important details, like how to access your funds and keep up with your regular loan obligations.
With a little preparation and these tips in your back pocket, your reverse mortgage process can be smooth sailing from start to finish!
Thank you, Nelly, for sharing your experience and expertise with us!
If you’re interested in learning more about reverse mortgages or want to find out if you qualify, contact our team today. Our reverse mortgage consultants will get to know you and your financial situation to help you determine whether a reverse mortgage is the right fit for you. Empower your financial journey – reach out to Longbridge Financial now to make informed decisions about unlocking the Power of Home®.
