Welcome to “Ask the Pros” – where your questions meet the wisdom of those who understand the ins and outs of reverse mortgages! If you have questions about unlocking the power of your home equity, navigating the ins and outs of reverse mortgages, or making informed decisions about your financial future, you’re in the right place.
In this exclusive series, we tap into insights and expertise directly from our wonderful team members at Longbridge Financial who are helping to shape the reverse mortgage industry each day. Our team of seasoned professionals are committed to fielding common questions, unraveling complexities, and providing invaluable insights to empower you on your financial journey.
Whether you’re a homeowner considering a reverse mortgage, a financial advisor seeking new perspectives, or are simply curious about the unique retirement tool, “Ask the Pros” is your go-to source for reliable insider information. Join us as we explore the nuances of reverse mortgages, debunk myths, and uncover strategies for leveraging home equity in retirement.
Our next featured “pro” gives us an inside look at the loan process! Meet Saher Bawany, a Senior Reverse Mortgage Consultant at Longbridge Financial and a key member of our dedicated team of loan officers. Saher and her colleagues are passionate about understanding each customer’s unique financial goals. We had the opportunity to sit down with her and get a loan officer’s perspective on the reverse mortgage process – from what happens after you apply to how long the journey takes. Let’s jump into the Q&A!
Q: What is the process to apply for a reverse mortgage?
A: The process of applying for a reverse mortgage is fairly straightforward, but it’s also an important step, so it’s good to know what to expect. It’s not just about filling out some paperwork – it’s about making sure you’re comfortable with every part of the process.
First, you’ll connect with a loan officer, and they’ll get to know you and vice versa! Think of it as a conversation rather than a transaction. You’ll talk about your current financial situation, what your goals are, and how a reverse mortgage might help. This chat helps us customize the loan to fit your specific needs and gather the right documents to keep things moving smoothly.
We understand that taking out a reverse mortgage is a significant decision, one that should be approached with careful consideration. We encourage all our clients to involve the people they trust the most. This might include consulting with a trusted financial advisor who can provide valuable insights into how a reverse mortgage aligns with your overall financial strategy, or loved ones whose advice and support can be instrumental in making the right decision for your future.
Then, once you and your loan officer are on the same page and you feel good about the loan details, you’ll take the next step: meeting with a third-party, HUD-approved reverse mortgage counselor. This is a key part of the process, and a requirement of the loan, because the counselor will go over everything with you again to make sure you fully understand how a reverse mortgage works and what it means for you and your finances. Their goal is to ensure you feel confident and informed before moving forward.
After that, it’s pretty simple. You sign your application, and from there, your file moves on to the loan processing team, who will guide it through the next stages. It’s a team effort to make sure the process is smooth, efficient, and tailored to your needs.
Q: What happens after your application is submitted?
A: Once your application is in, things really start to move! Your loan is assigned to a dedicated processor who works closely with your loan officer to ensure everything stays on track and avoid any delays.
At Longbridge, one of the first things we do at this point is order services, like an appraisal, to get a clear picture of your home’s value. Around this time, you’ll also receive a welcome email from your processor, so you know exactly who’s handling your file and what to expect next.
Our team will work with an Appraisal Management Company (AMC) who will independently order an appraisal on your behalf at a time that is convenient for you. Once it’s completed, your loan officer will review the results with you before moving to the next step in the loan process. It’s important to keep in mind that the turnaround time for appraisal results can vary, depending on the availability of an appraiser in your area.1 But rest assured, just like every other step, we’ll walk you through the process to ensure you’re comfortable and your loan remains on track.
From there, you’ll get regular updates, usually weekly, so you’re kept in in the loop. These updates will cover things like when the appraisal is scheduled, when it’s completed, and what stage your loan is in – whether it’s being reviewed by underwriting or moving to the next step. It’s all about making sure you’re informed every step of the way, so there are no surprises!
Q: How long does the whole process typically take from start to finish?
A: The timeline for a reverse mortgage can vary, but at Longbridge, from the day your loan enters processing, it typically takes about 30 to 45 days to close. In some cases, we can even close in less than 30 days! This often happens when your loan officer is proactive in gathering all your documents and information upfront, which really helps keep things moving.
While the initial application process might feel like a bit of work, it’s all to make the rest of the journey smoother and faster. By being thorough from the start, we can expedite your file through processing. Plus, because everything —from processing to underwriting and even closing —is handled in-house at Longbridge, you’re working with one cohesive team that’s focused on getting your loan done correctly and efficiently. Our goal is to make the entire experience as quick and easy as possible for you!
Thank you, Saher, for sharing your insider perspective on the reverse mortgage process!
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®️.
