How to Apply for a Reverse Mortgage

The Home Equity Conversion Mortgage or simply known as the reverse mortgage is a federal government program offered to senior citizens of the United States who wish to get a cash out of their home equity. If you wish to apply for this program, the following steps will help you achieve your goal:

  1. Find a certified HUD counselor in your local area to discuss your plan. These free counseling services will help broaden your understanding regarding all aspects related to reverse mortgage including its pros and cons.

  2. Secure a counseling certificate from the counseling agency. The certificate should be issued after the counseling session.

  3. Prepare documentations that will be needed in the application such as a government-issued identification card, Medicare or Social Security card, documentation of any outstanding mortgage balance which includes the lender's name and contact information if any, estimation of the property value, and proof of home ownership.

  4. Contact and submit your application to a FHA-approved lender in your locality including the certificate of counseling and other requested documentation.

  5. Discuss with the lender any concerns you have in mind. Ask questions and clarify anything that confuses you.

  6. Complete and sign all required forms once the home appraisal is completed and your proposal is approved. Be sure to mention how you want the fund withdrawn.
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