1. Awareness- Homeowner learns about reverse mortgages from a news article, word of mouth, etc
2. Upfront Education- Homeowner contacts a reverse mortgage lender to learn more about reverse mortgages.
3. Counseling-Homeowner seeks counseling on the reverse mortgage program from a HUD approved counseling agency.
4. Application-Homeowner contacts lender to get the application completed.
5. Processing-Lender processes the loan, ordering appraisal (to determine value of the home), title work, lien payoffs, credit report, etc. Appraiser prepares the appraisal report.
6. Underwriting-After receiving all pertinent information and data, lender submits loan to the underwriter for review. The underwriter will notify lender if any additional documents, etc are needed.
7. Closing-After underwriter approves the loan, the closing (signing) of the loan is scheduled. Closing papers and final figures are prepared. Customer signs closing papers.
8. Disbursement-After the three day right of rescission, the loan funds are disbursed and any existing debt on the home is paid off.