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National Association of Mortgage Bankers

National Reverse Mortgage Lenders Association

Reverse Mortgage Company
Equity rich? Cash poor? See how a Reverse Mortgage can help!

Reverse mortgage - How long is it needed to take it out?

Reverse Mortgage CompaniesYou will find some seniors who have the feeling that in order to take out a reverse mortgage, all you need to have is your own house. They even think that in case of a reverse mortgage, the loan amount is almost equal to the value of the home. But, this is not the exact situation. You can use a reverse mortgage calculator to find out whether or not you are eligible to take out a reverse mortgage loan.

Eligibility criteria to take out a reverse mortgage

In order to take out a reverse mortgage, you need to have the following eligibility criteria:

  • You should be at least 62 years old or more than that.
  • You should have your own house of which you are the sole owner or may be you stay in a joint family. If you have any outstanding loans to repay, you need to pay it off before applying for a reverse mortgage.
  • You should have at least 50-60% equity in your house.

What is the time needed to take you a reverse mortgage?

Reverse Mortgages - Banks Leave Reverse Mortgage MarketA reverse mortgage calculator can be said as a means to determine the amount of cash you may get from a reverse mortgage. After you decide finally that you want to take out a reverse mortgage, you need to get the approval of your loan. For this, you'll have to fill out an application form. You will find that the loan officers usually help you fill it out and then check all your necessary documents that are required for the approval of the reverse mortgage loan. Normally, it takes 4 to 5 weeks to complete a reverse mortgage. After that, you get your payments within three days of time. But, if your credit score is not good or you have to repair your property, then in such a situation, the lender will not approve your loan request within 4 to 5 weeks time. You'll then have to improve your credit score at first, by paying off your loans and repair your property as required in order to get the approval of your lender.

An important factor to take into consideration for reverse mortgage application depends on how fast the borrower presents the necessary documents. It is important for the reverse mortgage application to be 100% complete that includes all the documents which are needed for the approval of the loan. In respect to this, you may find that the underwriter will request you to fulfil certain conditions before the approval of the loan. An underwriter can appeal you to increase the premium of hazard insurance coverage. The appraiser states that the necessary work on the house needs to be done before taking out a reverse mortgage.

How does the appraisal work?

Reverse Mortgages for Seniors & RetireesAn important part of reverse mortgage is the appraisal which helps you know how the process of the loan takes place. It also helps you determine the value of your home. When an assessment is being ordered, the appraiser checks your online database in order to find out some important things about your house such as the style how your house is being made, the number of rooms you have in your house, the square footage in which your house has been build and any facilities that your house may have such as fireplaces, etc.

After getting the necessary information about your home, the appraiser will insert all the details in his software so that he can make alterations for the significant difference. When the process ends, he will come to a conclusion by fixing a value based on the value of the equivalent sales. This is said as an opinion of value and this opinion may sometimes vary depending upon the appraisers. So, it is important for you to keep in mind that if the real estate prices in your area have been declining, then you need to be sensible about the worthiness of your house in the present market and then take a decision by checking the necessary facts and specifications.

When you pass away, your inheritors are the owner of your home. So, if they want they can sell your house which in turn will help them pay off the mortgage and they will get the rest of the money or if they want, they can live in the house. In such a situation, your inheritors need to take out a refinance mortgage loan to repay this loan. Thus, by this way you can repay your reverse mortgage.