The Reverse Mortgage Process

Education

This is the step that you are at now. You are taking the time to learn about the Texas Reverse Mortgage program to determine if it is appropriate for your situation. Next you will want to talk to a loan advisor to verify your eligibility and determine that a Texas Reverse Mortgage is right for you. Set up your personalized education.

Consumer Counselor Services

As part of the Texs Reverse Mortgage application process, you will be required to participate in a brief consumer education session with a HUD‑approved counselor – typically, conducted by phone.

The counselor will explain the legal and financial obligations of the reverse mortgage as well as any alternatives you may have. A Texas Reverse Mortgage is not for everyone, so this step will help you ensure you are making the right decision.

After the session has been completed, you will be given a Certificate of Borrower Counseling, which is valid for 180 days after the session. You must then present this certificate to the reverse mortgage lender as proof that you have completed the FHA-approved counseling session. Find a HUD approved counseling agency in your area.

Application

It is recommended that you rely on only a trained professional Texas Reverse Mortgage Specialist to help you complete and sign your loan application documents. Once your application has been completed you will receive all related disclosures, including the estimated total cost of the loan, as required by the federal Truth in Lending Act.

Appraisal

A professional FHA approved appraiser will be used to determine the value of your home, which is used to calculate the amount of money you receive as part of your Texas Reverse Mortgage.

Get an estimate of your homes value.

Home Insurance

Most Texas Reverse Mortgage lenders will require that you show proof that you have purchased home insurance which will protect you in case the home is destroyed as a result of fire, theft or disaster. If you already have home insurance, make sure your policy is up to date, payments are current and that you have the minimum amount of coverage required by your lender (if applicable). You may, however, wish to purchase a larger policy to protect against additional risks or excessive losses.

Mortgage Insurance

Your Texas Reverse Mortgage lender will also require a mortgage insurance policy. This protection insures that, when re-payment is ultimately due, the amount needed to satisfy the loan will never exceed the value of the home itself. An initial premium for this protection will be due upon closing your loan, and can be financed as part of your reverse mortgage proceeds.

Title Insurance

There are two types of title insurance: one protects the lender – one protects the borrower. Title insurance is purchased as protection from claims against your ownership of the property. Such claims may be made by undisclosed spouses, heirs of previous owners, creditors holding liens against previous owners, or other parties.Your reverse mortgage lender will most likely require you to purchase a title policy, which will cover their interests in the property. It's up to you to purchase a policy to protect your interest in the home. Your Reverse Mortgage Specialist will be able to recommend a title insurance company who can provide for your needs in this area.

Setting the Closing Date

Closings must be coordinated with many parties that may include: the lender, yourself, your attorney, and the title company representative. Your Reverse Mortgage Specialist will personally help coordinate the closing for your greatest convenience. Loan processing typically takes 6‑8 weeks before the closing can commence. The closing for a Reverse Mortgage may take place in your home or at our office. Thereafter, you will have three (3) days in which to cancel the mortgage should you change your mind. Once closed, all cash disbursements due to you will be forwarded directly from the Processing Center after the three (3) days have expired.