Wondering what the reverse mortgage process looks like? We’ll walk through each step — from education and application to closing and funding.
Everyone could use some extra cash, especially in retirement. And while options for improving your cashflow while on a fixed or limited income can seem limited, a reverse mortgage can give you access to another powerful source of wealth: your home equity.
Designed for homeowners ages 62 and older, a Home Equity Conversion Mortgage (HECM) — the most common type of reverse mortgage — lets you access a portion of your home’s equity to use however you choose. With today’s seniors collectively holding over $14 trillion in housing wealth, you may have more equity available than you realize.1
Just like a traditional mortgage, securing a HECM reverse mortgage involves multiple steps. From your initial education and application all the way to signing closing documents and receiving your funds, the process doesn’t happen overnight — but knowing what to expect makes all the difference.
So, how long does the reverse mortgage process take, and what happens at each stage? Here’s a step-by-step breakdown of what you can expect.
Step 1: Education and Counseling
What happens at this stage?
The first step in the reverse mortgage process is deciding whether this loan is right for you. You’ll connect with a knowledgeable, licensed reverse mortgage loan officer who will get to know your financial situation, your goals, and how a reverse mortgage might fit into your retirement. This is the time to ask questions — from how much you may receive in proceeds, to loan requirements, how funds are disbursed, and how the loan may impact any heirs.
At Longbridge, we encourage our customers to involve the people they trust most in this process. That may mean consulting with your financial professional who can help assess how a reverse mortgage fits into your broader financial strategy, or including loved ones whose support can be invaluable in making this decision.
Once you’ve decided a reverse mortgage is the right fit, there’s one more required step before submitting your application: reverse mortgage counseling. You’ll meet with an independent, HUD-approved third-party counselor who will review everything with you to ensure you understand every aspect of your financial decision — how the loan works, your responsibilities as a borrower, and what it means for your finances and your future. Upon completion, you’ll receive a counseling certificate, which is required to move forward with your application.
Step 2: Application Submission
What’s involved in applying for a reverse mortgage?
Once you’ve received your counseling certificate and provided a copy to your lender, you can officially submit your application. The reverse mortgage application process is similar to that of a traditional mortgage. Your loan officer will work with you to gather important information and documentation including:
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- Date of birth
- Proof of income
- Social Security number
- Homeowner’s insurance information
- Mortgage statement (if applicable)
- Complete copy of a Trust (if applicable)
After that, it’s fairly straightforward. You sign your application, and your file moves on to a dedicated loan processor who will guide it through every step that follows — coordinating closely with your loan officer to keep things on track.
Step 3: Appraisal
How does the reverse mortgage appraisal work?
Your home’s value plays a central role in determining how much you can borrow. The appraisal accomplishes two things: it assigns a “fair market value” to your home, and it ensures the property meets HUD’s minimum property standards.
At Longbridge, we work with an independent Appraisal Management Company (AMC) who will independently order this service on your behalf. You’ll be contacted to schedule a convenient time for a local FHA-approved appraiser to visit your property. During the visit, the appraiser will conduct a thorough walkthrough — checking things like the stove, heating system, and attic (if applicable) — to confirm the home does not present any health or safety concerns.
The turnaround time for appraisal results can vary depending on the availability of appraisers in your area. Rest assured, we’ll walk you through every aspect of the appraisal process and keep your loan moving forward.
Step 4: Underwriting
What does reverse mortgage underwriting involve?
Once your appraisal is received, your loan file is reviewed by an underwriter. The underwriting process confirms that all requirements have been met based on your submitted documentation.
After reviewing your application, the underwriter will issue one of the following decisions:
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- Approved — your loan is ready to move forward
- Approved with Conditions — additional documentation is needed (such as income documents or proof of home repairs)
- Denied — for a specific, stated reason
If you receive a conditional approval, your loan officer will stay on top of any outstanding items and work with you to achieve final approval as efficiently as possible. Once everything is cleared, your loan status changes to “Clear to Close.”
Step 5: Closing
What happens at a reverse mortgage closing?
With your loan cleared to close, the file moves to the closing department, where your final loan documents are prepared. At Longbridge, our closing department will coordinate directly with you to schedule a signing appointment at a time that works best for you. Once you’ve signed, you’ll receive a full copy of all closing documents for your personal records.
Step 6: Funding
When will you receive your reverse mortgage funds?
Three business days after you sign your closing documents, your funds will be disbursed. Any outstanding liens or existing mortgages will be satisfied from the loan proceeds.
Depending on the reverse mortgage option you’ve selected, you can receive your funds as:
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- A lump sum
- Monthly payments
- A line of credit to draw from as needed
- A combination of the above2
When you work with Longbridge, you get more than just a lender — you get a servicer, too. That means we’ll remain your dedicated point of contact for the life of your loan, assisting with loan summaries, transactions, occupancy verifications, draw requests, and any other needs that may arise. Within 30 days after funding, you’ll receive your loan’s servicing details by mail.
How Long Does the Reverse Mortgage Process Take?
One of the most common questions we hear is: “How long does the reverse mortgage process take from start to finish?”
At Longbridge, loans typically take 30 to 45 days to close from the date they enter processing — and in some cases, we can close in less than 30 days. This is possible when you and your loan officer are proactive about gathering all necessary documents and information upfront.
And because the process is handled in-house at Longbridge, you’re working with one cohesive team focused on moving your loan smoothly and efficiently. You’ll receive regular updates, typically weekly, so you’re never left wondering where things stand.
Other Frequently Asked Questions About the Reverse Mortgage Process
Q: “Do I need a certain credit score to get a reverse mortgage?”
A: Unlike traditional mortgages, reverse mortgages don’t have a strict minimum credit score requirement. However, lenders do conduct a financial assessment to evaluate your credit history and income.
Q: “Can I still get a reverse mortgage if I have an existing mortgage?”
A: Yes — in fact, many borrowers use a reverse mortgage to pay off their existing mortgage. Any outstanding balance is paid off using the loan proceeds at closing.
Q: “What are my obligations after the reverse mortgage closes?”
A: There are no monthly mortgage payments required with a reverse mortgage, however, you must continue to meet the loan’s obligations: occupying the home as your primary residence, and keeping up with the terms of the loan, such as staying current on property taxes and homeowner’s insurance, and maintaining your home.
Q: “What happens at the end of a reverse mortgage?”
A: The loan becomes due a maturity event occurs, such as when the last borrower permanently leaves the home, sells the property, or passes away. At that point, you or any heirs have the option to keep or sell the home. And because reverse mortgages are non-recourse loans, neither you nor your heirs will owe more than the home is worth at the time the home is sold and the loan is repaid.
Ready to Get Started?
The reverse mortgage process is designed to be thorough, transparent, and tailored to your unique needs — and with the right team by your side, it can be smoother and faster than you might expect.
See how much you may qualify for with our free reverse mortgage quote calculator or contact the Longbridge team to start the conversation.