Reverse Mortgages:

Cash Solutions for Senior Homeowners

Steps to a Reverse Mortgage 

A reverse mortgage is a deliberate undertaking – on purpose.  A reverse mortgage involves tapping the equity of your home.  It may be a sound idea, or perhaps it is not appropriate.  Only you can make that decision based on thorough review of your financial needs and the benefits that a reverse mortgage may provide.

Vanguard Mortgage wants to help provide the information you need to make an informed decision.  Our timeline for a reverse mortgage is this: 

• Preliminary discussions.  A telephone conversation often starts the process.  We discuss the features and benefits of reverse mortgages.  To develop a reverse mortgage financial scenario we ask you for your residence address, your age, the estimated value of your home, and whether you have any outstanding mortgages.  We offer to mail you further information and to meet with you for additional conversation. 
• Initial meeting.  We meet together in the comfort of your home or at our office.  We encourage you to have family members or other trusted individuals present for the meeting, if you choose.  Additional questions are answered about reverse mortgages.  We offer to meet again, and as often as necessary, to ensure that you have all the information you need.
• Counseling.  Once you have decided to take it to the next step, a counseling session occurs with a counselor approved by the Department of U.S. Housing and Urban Development (HUD).  Counseling usually takes about one hour and may be done over the telephone.  After counseling you will receive a certificate of completion that makes you eligible for a Home Equity Conversion Mortgage (HECM).
• Loan Application.  An FHA-approved loan originator will come to your home to start the loan application process and provide you with federal mortgage disclosures.
• Appraisal.  An FHA-approved appraiser will make an appointment with you to inspect your home and to issue a report regarding its value and condition.
• Closing.  A date and time will be established at your convenience to sign the necessary papers to formalize the mortgage.
• Right of Rescission.  Because a reverse mortgage is considered a refinance of your home, you have 3 business days after closing to change your mind, and to rescind the loan.  At the end of this time frame, the reverse mortgage is completed and funds are disbursed.

When is a Reverse Mortgage a good idea?

When is a Reverse Mortgage a bad idea?