California Reverse Mortgage 5 Step Mortgage Process
This BLOG On California Reverse Mortgage 5 Step Mortgage Process Was PUBLISHED On July 11th, 2020
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 homes. It is time to have 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 accuracy of the final numbers and if any additional options are available to the 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
About The Author Of California Reverse Mortgage
Alex Carlucci is the author of this blog California Reverse Mortgage and a contributing writer for Gustan Cho Associates Mortgage News. Alex has a national reputation for being able to do mortgages others cannot. This is because Alex Carlucci 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.
A 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 Alex Carlucci available via email at email@example.com. Or call us at 262-716-8151 or text us for a faster response. The team at Gustan Cho Associates will assist you every step of the way.
Stop letting your housing cost blow your budget.