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California Reverse Mortgage 5 Step Mortgage Process

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California Reverse Mortgage 5 Step Mortgage Process

This BLOG On California Reverse Mortgage 5 Step Mortgage Process Was Written By Quiana Williams of GCA Mortgage Group

California is the largest and most populous state in the United States. California also has the highest home value and tax rates in the nation. Average home prices and values in the State of California is $565,700  compared to the average home prices nationally of $245,980. California’s Economy ranks fifth as the world’s largest economy. California’s economy now surpasses the economy of the United Kingdom. It is not cheap to live in the state of California.

Homeowners who are 62 years old or older, it is time to truly get comfortable in their own home. It is time to have a peace of mind and not concern themselves with a housing expense. At this stage in life homeowners deserve to truly relax in their home and not worry about making their mortgage payments. The mortgage payment is every American’s highest monthly debt payment. For most, over half of their income goes towards making their housing payments.

Getting California Reverse Mortgage Is As Simple As Counting To Five

Here is an overview of what to expect:

Step One – The Proposal

  • The proposal contains information to help homeowners determine the right HECM solution that best fits their needs and goals
  • Borrowers will get the facts and all their questions answered
  • Borrowers are encouraged to include their family members and trusted adviser(s) in their decision-making process
  • Borrowers  will see the estimated projections of home equity and possible payouts mapped out from the start of the loan until age 99
  • Borrowers will be prepared for the next step in the process

Step Two – The Counseling

To ensure that you understand all aspects of a HECM – Reverse Mortgage, you are required to have counseling

  • Counseling is to be completed by meeting with a HUD approved independent counselor
  • A list of counselors will be provided to with proposal and an access code
  • The access code is to be provided to the counselor to better serve borrowers
  • The counseling usually takes about 60-90 minutes
  • It can be completed in-person or over the telephone (Note some states require face-to-face counseling; California is not one of them)
  • There is a mandatory seven day waiting period after counseling in California

Step Three – The Appraisal

Mortgage applicants documents are collected with a signed completed application:

  • The listed of required documents will be provided to mortgage applicants by Quiana Williams
  • Escrow/title is open to order title work and existing mortgage and/or lien payoff amounts
  • The property appraisal is ordered
  • The appraised value is added to determine the final numbers accuracy and if any additional options are available to client
  • This is an opportunity to make a decision to change loan options to better suit borrowers needs, if the property value is much higher or lower than the original proposal

Step Four – The Underwriting

The completed file is sent for review:

  • An underwriter will then review the submitted materials for approval
  • The underwriters note, if any, are sent out to prepare for closing

Step Five – The Closing

Once the loan is approved by the underwriter, the following steps are followed:

  • Borrowers final documents are prepared for their signature

Borrowers will be contacted to schedule the loan closing – which can take place in their home

  • Clients signs with a notary
  • The loan documents are executed and returned
  • Any existing mortgage(s) or liens will be paid off with the HECM proceeds
  • The title is recorded removing all prior liens
  • After any rescission period, the loan funds, if applicable, money is released to client

About The Author Of California Reverse Mortgage

Quiana Williams is the author of this blog California Reverse Mortgage and a contributing writer for Gustan Cho Associates Mortgage News. Quiana Williams has a national reputation for being able to do mortgages others cannot. This is because Quiana Williams of GCA Mortgage Group has no overlays on government and conventional loans. Over 75% of our borrowers are folks who could not qualify at other lenders.

The reverse mortgage is a versatile tool that can help achieve so many retirement goals. If you have additional questions or do not understand the information you were provided, please feel free to contact me. I am The Gustan Cho Team HECM/Reverse Specialist Quiana Williams available via email at quiana@usa-mortgage.com or phone (760)440-8844 I will assist you every step of the way. Text Quiana Williams for faster response.

Stop letting your housing cost blow your budget.

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