To get a reverse mortgage typically takes about 30 to 45 days from start to finish. After you research here and on other sites, please contact your local Arkansas reverse mortgage specialist to gather more information and get a good faith estimate.

Application

The application is what legally allows the lender to begin the application process, but yet no charges have been acquired. This application is not confining and can be canceled at any time. This application will contain the most basic information along with reverse mortgage fees, interest rates and loan amounts.

Counseling

The counseling can be completed before or after the initial application, but no charges can be compiled until the HECM Counseling Certificate has been submitted with the application to the lender. The applicant can receive the HECM Counseling Certificate from a HUD approved agency after completing the mandatory counseling session.

Appraisal

An appraisal determines the legal value of the homeowner’s property. A reverse mortgage appraisal must be carried out by an FHA approved appraiser and follow a specific FHA format. Since this has special specifications, the homeowner may need to get their home reappraised if it has already been done in the past.

Underwriting

By conducting a title search and purchasing title insurance, a lender confirms that the applicant legally owns the property. Also, the lender makes sure that there are no issues with the trust¸ unpaid liens and bankruptcies. Once underwriting has been completed, the application’s status will change from “clear to close”. This means that everything has been completed and you can set a closing date.

Closing

The closing date is the last chance for the applicant to review that the documents are at the expected amounts, interest rates, fees and loan amounts. An attorney or notary must be present at the closing when all documents are signed. After the signing the application goes into a three day “right of rescission” period. These are the three days after closing that if the applicant decides to cancel, there is no penalty. It is only after these three days that the title will overnight a check to the homeowner.