Steps in getting a reverse mortgage:

Like any other mortgage, reverse mortgages involve steps to protect both you and the lender. The following steps are common to all reverse mortgages and should give you an idea of what to expect.

1. Initial Discussion/Application : The first step is for you to sit down with us to find out if a reverse mortgage is right for you. We will explain how it works, how much you might receive, and answer any questions you might have. We will be able to discuss your specific situation and review the loan process so you feel comfortable moving forward.
2. Counseling : If you decide to move forward with the application process, you will receive free counseling from a certified, HUD-approved counselor. This step is a government requirement to make sure all your questions have been answered and that you aren't confused about the process.
3. Appraisal : An appraisal will be arranged to determine the market value of your home and if there are any repairs the Federal Housing Administration will require.
4. Inspection : A home inspection may also be required to make sure your home is structurally sound and that there is no dry rot or termite damage.
5. Underwriting : Once the inspection and appraisal are complete, the reports are reviewed and you will begin going through the same process you would for any mortgage.
6. Closing : Closing is the final step in the process where you will receive the funds from your reverse mortgage. There are three options for payment; a lump sum, a line of credit, or monthly payments.

Once you receive the money it's up to you to decide how to spend it. You can fix up your home, travel, pay bills, or help your family members. There are no requirements or restrictions on how you spend it, it's yours!