Getting the green light to close is an exciting moment. It means you’ve reached one of the final stages of your reverse mortgage journey — but it’s also the point where many borrowers have new questions.
What should you expect on closing day? When will you receive your funds? What happens after you’ve signed the paperwork?
We asked Givanni Alexander, Director of Closing, Funding, and Post Closing, and Jane Brady, Closing Supervisor, to walk us through what borrowers can expect before, during, and after closing.
Once Your Loan Is Ready to Close
Reaching the closing stage means you’re almost at the finish line. Once your reverse mortgage has received final approval and all remaining requirements have been met, your loan officer will reach out to coordinate the signing date and time that works for you. The Closing team will then coordinate with the settlement agent, attorney, or notary, along with any other necessary parties, to schedule your closing appointment.
While much of this coordination happens behind the scenes, you won’t have to navigate it alone. Your loan team will keep you informed throughout the process and let you know if there’s anything needed before your appointment.
What Closing Day Looks Like
By the time closing day arrives, everything is in place for you to review your final loan documents and complete the paperwork needed to finalize your loan.
If you’re wondering what to expect, you’re not alone. According to Givanni and Jane, many borrowers are pleasantly surprised by how smooth and straightforward the closing experience is.
During your appointment, the settlement agent, attorney, or notary will walk you through the loan documents, explain where signatures are needed, and answer any questions you may have along the way. Take your time as you review the documents. Your settlement agent, attorney, or notary can explain anything that isn’t clear before you sign.
Most closing appointments take about an hour, though the exact timing can vary depending on your transaction. By the end, you’ll have signed the documents needed to finalize your reverse mortgage.
If you’re refinancing into a reverse mortgage, there’s one additional step to keep in mind. Federal regulations require a three-business-day Right of Rescission before the loan can fund. This waiting period is intended to give you additional time to review your decision before the transaction becomes final.
Preparing for a Smooth Closing
The good news is that there isn’t much you need to do before closing, but taking a few simple steps can help the process go as smoothly as possible.
Based on their experience helping borrowers through the closing process, Givanni and Jane encourage borrowers to:
- Review your closing documents as soon as you receive them so you have time to look everything over before your appointment.
- Have a valid government-issued photo ID ready to bring with you on closing day.
- Ask questions ahead of time if there’s anything you don’t understand. Your loan team is there to help you to know what to expect and feel prepared every step of the way.
- Let your loan officer know if your contact information or personal circumstances have changed.
- Stay available in case any last-minute scheduling or coordination is needed.
A little preparation can go a long way toward preventing delays and helping you feel confident and ready when it’s time to sign.
Common Questions Before Closing
Even with closing day in sight, it’s perfectly normal to have a few questions. Here are some of the most common ones borrowers ask before closing.
“When can I sign?”
Many borrowers are eager to sign as soon as their loan receives final approval — and understandably so. Once everything is ready, your loan officer will work with you to schedule a closing date and time that’s convenient for you.
“When will I receive my funds?”
It’s understandable to be eager to receive your funds after closing. While many borrowers expect funds to be available immediately after signing, that’s not always the case.
If you’re refinancing into a reverse mortgage, federal regulations require a three-business-day Right of Rescission before the loan can fund. As mentioned previously, this waiting period gives you additional time to review your decision before the transaction becomes final.
If you’ve chosen to receive monthly term or tenure payments, you also have flexibility in how those payments are delivered. At closing, you’ll typically have the option to receive them by check or direct deposit.
“Are there any additional costs?”
By the time you reach closing, your loan fees and closing costs should already have been reviewed and disclosed. Closing shouldn’t come with unexpected surprises — it’s simply the final step in completing your reverse mortgage.
What Happens After Closing?
Although your part is complete once the paperwork has been signed, the Closing team still has a few final steps to complete before your reverse mortgage is finalized.
The signed loan package is reviewed to ensure everything has been executed correctly. Once any applicable waiting periods have expired and all final requirements have been satisfied, the loan is funded.
The timing of when funds become available depends on your loan type and how you’ve chosen to receive your proceeds. Throughout the process, your loan team will keep you informed so you’ll know what to expect as your loan reaches the finish line.
Closing with Confidence
Closing is one of the final milestones in the reverse mortgage process. By this point, you’ve completed much of the journey and are getting closer to accessing your home equity.
If there’s one takeaway Givanni and Jane hope borrowers remember, it’s that closing shouldn’t feel intimidating. If you have questions about your closing documents or what to expect, don’t hesitate to ask — your loan team is there to make the experience as smooth and straightforward as possible.
Whether you’re preparing for closing or just beginning to explore a reverse mortgage, the Longbridge team is ready to answer your questions and explain what to expect every step of the way. Contact us today to learn more.