With a Reverse Mortgage your current loan (if you have one) will be paid off with your new Reverse Mortgage. This will eliminate any current mortgage payment you have! If there are remaining funds after your mortgage is paid off, you’ll have access to those as well. If your home is paid off, you can use a Reverse Mortgage to access the equity that you have worked so hard to build. The Alliance Reverse Mortgage process is easy and only 5 steps:
1. Speak with one of our Reverse Mortgage Specialists. When you connect with your Alliance Reverse Mortgage Specialist, they will educate you about the Reverse Mortgage loan program so you can determine which product best fits your needs. An application will be sent out and we will answer any questions along the way. We will review the different options available to you on how you receive the proceeds. Your Alliance Reverse Mortgage Specialist will provide you with exceptional service throughout the entire process and is always available for your questions.
2. Complete your application and attend counseling – The U.S. Department of Housing and Urban Development (HUD) requires that all applicants receive third-party counseling to explain the available options. Alliance Reverse Mortgage will provide a list of counselors for your to choose from and counseling sessions can be completed in person or over the phone.
Upon completion of counseling, the loan is submitted to underwriting for approval.
Alliance Reverse Mortgage encourages you to include your loved ones in the process.
Making the decision if a Reverse Mortgage loan is right for you is something you do not have to do alone. The process includes a third-party counseling session that helps to ensure borrowers can make an informed decision about borrowing against their home equity with a Reverse Mortgage. Alliance Reverse Mortgage also encourages you to speak with your family about the decision of a Reverse Mortgage. At your request we can include loved ones on phone calls so that they can hear how the Reverse Mortgage works, ask questions, to have a better understanding of how the process will work.
If you are looking to include loved ones in on the process here are some helpful tips:
● Educate yourself about the Reverse Mortgage. How will it benefit you, the process and the basics of the program.
● Have educational materials ready to share with loved ones. Have the Alliance Reverse Mortgage website ready to share with your loved ones. You can also request a personal Reverse Mortgage packet from Alliance Reverse Mortgage.
● Be open and honest when speaking about your finances with your loved ones and how the Reverse Mortgage could be beneficial to you.
● Invite your loved ones to take part in phone calls with your Alliance Reverse Mortgage Specialist. Our specialists can answer any questions they may have and help them understand all the benefits of the program.
● Make sure your loved ones know the facts. There are a lot of misconceptions about the Reverse Mortgage program so be prepared to share all of the important need-to-know information.
3. Appraisal – After obtaining the counseling certificate your home will be appraised. The appraisal is completed by an independent FHA-approved appraiser and arranged through an Appraisal Management Company. The appraisal is almost as quick as the
counseling session. After the appraisal, the loan moves into the underwriting process where all the documents are reviewed, finalized, and prepared for the closing.
4. Closing and Disbursement – The loan can be closed in the comfort of your own home.
After closing, there are three days during which you can choose to cancel the transaction. Federal law requires us to wait until we’re sure your decision is final before we disburse your funds. After you receive the money, it can be used according to the program restrictions.
5. Repayment – As long as the property remains your primary residence you’re not required to make a monthly mortgage payment to your lender. You simply remain responsible for the payment of taxes, insurance and maintenance. Your Reverse Mortgage balance becomes due when the borrower(s) no longer occupy the home or passes away. Your heirs do not assume the debt but have the option to keep the home through purchase or refinance if they choose.