The Reverse Mortgage Process
At Longbridge Financial, we believe learning about, applying for, and obtaining a reverse mortgage should be as simple as possible.
What’s the process for getting a reverse mortgage—where do I start?
— George
We’ve broken down the process of obtaining a reverse mortgage into steps that are easy to follow and understand. A Longbridge Financial consultant would be happy to walk you through the entire reverse mortgage process and answer any questions you may have, or you can read more below.
STEP 1: Start your application
One of the first steps to getting a reverse mortgage can happen right from the comfort of your home by calling Longbridge Financial. One of our knowledgeable professionals can help you determine which reverse mortgage solution best meets your needs.
Taking out a reverse mortgage is an important decision, so we want to make sure you’re comfortable with it. That’s why we encourage you to speak with people you trust, such as financial advisors and family members, to get their advice and support. Your Longbridge Financial consultant can also speak with them, if you think it’s appropriate, to explain the process.
STEP 2: Receive independent counseling
For added confidence and assurance, to ensure that you’ve had all of your questions answered by an independent third party, all reverse mortgage borrowers are required to speak with government-approved counselors. You’ll receive a certificate after your session that will allow you to complete your application.
STEP 3: Get an appraisal
An important part of determining how much money you can borrow is to get a home appraisal and inspection. Longbridge Financial will order these services from a professional appraiser on your behalf. Just like every other step, we’ll walk you through the process to ensure you’re comfortable with it.
STEP 4: Receive your funds
Once your loan is processed and complete, and you’ve chosen when and how you’d like to receive your reverse mortgage proceeds, we’ll deliver the final paperwork in person to get your signature. If you had an existing mortgage, it will be paid off. Depending on the type of reverse mortgage you select, you can choose to receive your cash as a lump sum or monthly payment, a draw on the loan as a line of credit,* or a combination of these options.
No monthly mortgage payments sounds great. But what else will I have to pay?
— George
Since you’ll still own the home, you’ll have to continue paying property taxes and insurance, and maintaining it in good condition.
As long as you meet these obligations, there are no monthly mortgage payments required. You won’t have to repay the loan (including accrued interest and fees) until you no longer live in the home. You or your heirs can decide how to repay the loan—by selling or refinancing the home, for example.
*Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
