What should happen at your reverse mortgage closing?

Before you go to closing, your Loan Officer should have given you a copy of the closing documents for the state you live in. If you did not receive this for your review, you should request them.

Another document you should receive before attending your closing is a copy of the final HUD Settlement form. This will give you the actual charges being assessed for your reverse mortgage loan. It should be close to the Good Faith Estimate you received at application. If it isn’t, this would be a good time to question your Loan Officer on the differences. You can still back away from the loan at this point if you are not comfortable with the responses to your questions or concerns about the differences in charges. You should receive this form at least 24 hours before closing.

You should also expect your Loan Officer to attend your closing or at least be available by phone for the entire time of closing. At times, you may have questions about the loan itself, and your title rep or notary may not be able to answer them. If your Loan Officer is available to answer those questions, you can continue on with the closing process.

The closing representative will also want to see a copy of your identification, whether it is a driver’s license or a state issued identification card.

Most reverse mortgage companies will offer you a direct deposit service for your line of credit funds; this requires a voided copy of a check from the account you choose to have those funds deposited into — if you have that ready to go at closing that will assist them with the process.

You will also be advised at closing what happens from here. If you have chosen a refinance reverse mortgage, you will now start the clock for what they call a 3-day right of rescission. This means you have 3 business days to cancel the loan if you decide it isn’t right for you. You must contact your Loan Officer within this time frame if you want to cancel. Otherwise, your loan will rescind on the 4th day and your funds will now be dispersed.

You will also be contacted by your servicing company to set up a pin number for access to your line of credit if that was an option you chose. This allows quicker access to your funds if you use a pin number access.

You will also receive a great deal of paperwork from financial firms asking you to invest in their programs. The reason they contact you is your note and deed are now a public record, and everyone has access to this information. Financial institutions feel that since you have a possible line of credit you may now have access to funds available for investment purposes. You are not required to respond to these companies. The best policy is that if you want to invest your extra funds, you should contact your Loan Officer and ask for a referral of a good financial planner. All good reverse mortgage loan officers will have very professional folks in this arena that they can refer you to.

Your closing process should take about an hour. If your loan officer has not advised you ahead of time of what the closing process should entail, be sure to call and ask. It is part of a loan officer’s job to make sure you understand the closing paperwork, the process and what is involved. Keep in mind, at any time on a refinance, if your loan officer has not walked you through this process, you should be concerned.

For more reverse mortgage information, call me anytime at 720.641.3482.

This entry was posted on Tuesday, February 19th, 2008 at 4:57 pm and is filed under Colorado Reverse Mortgage, Reverse Mortgages USA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.