The Process
The process of getting a reverse mortgage in Los Angeles is much simpler than you may think. View the step-by-step processes below or contact The Friendly Lender to learn about how it all works.
The Process of Getting a HECM / Reverse Mortgage Loan
Awareness & Education
You’ve likely encountered information about reverse mortgages through various channels—be it TV, radio, online, or mail. Now, it’s time for personalized education. Meeting with a qualified Mortgage Loan Originator from The Friendly Lender is crucial. We’ll dive into your specific financial situation, determine what you might qualify for, and provide a tailored analysis to help you understand your options.
Required Counseling
Before moving forward, all reverse mortgage borrowers must complete counseling with an independent, HUD-approved agency. This fee is typically paid by the borrower. We recommend completing this as soon as possible, as it can often be done over the phone. You’ll receive two certificates: one for your records and one to send to our office.
Application & Financial Assessment
Once counseling is complete, you’ll meet with your Mortgage Loan Originator to decide if a reverse mortgage is the right fit for you. We can guide you through the application process at our office, your home, or over the phone. You’ll receive a complete copy of all documents to review with your trusted financial advisors (like a CPA or attorney) or family members.
To ensure the long-term success of your HECM loan, HUD requires a financial review. This assessment evaluates your credit history, property tax payments, and other financial factors to confirm your ability and willingness to meet the ongoing loan obligations.
The Appraisal & Processing
Upon receiving your HUD counseling certificate, we’ll arrange for a full FHA appraisal of your property. This cost is paid by the borrower. Your home’s value will be determined by recent sales of comparable properties in your neighborhood.
Next, our team will begin processing your paperwork. This includes the appraisal, a title report, checking balances of any existing liens or mortgages to be paid off, and verifying income and other credit factors. We’ll keep you updated regularly throughout this stage.
Underwriting & Closing
Once all processing and paperwork are complete, your file is sent to underwriting. The underwriter will review your loan for approval and work to satisfy any conditions needed for closing.
If your loan is approved, we’ll contact you to schedule the signing of your final loan documents. At this point, we’ll confirm your chosen payment plan. After signing, you have a three-business-day rescission period to cancel the loan if you choose to do so (note: HECM for Purchase loans do not have a rescission period). Once this period passes, your funds will be disbursed according to your chosen payment option.
Ready to take the next step toward understanding if a reverse mortgage is right for you? Contact The Friendly Lender today at 818-952-8666 or email us at david@thefriendlylender.com
