The Reverse Mortgage Process

Step 1. Action


You contact a Reverse Mortgage Advisor to get all of the information they will be needed to decide if a Reverse Mortgage is right for you.


Step 2. Counseling

Third party Counseling is mandatory and must be provided by a HUD approved agency. The counselor explains different options available to the consumer. To help schedule this you can contact HUD directly, or Steve Rivas, Reverse Mortgage Specialist at 714-923-7400.


Step 3. Application

You fill out the application and select the payment option: Monthly payments for life, credit line or lump sum payment, or I can structure a plan that includes all three options.


Step 4. Processing

We processes the loan, order an appraisal (to determine value of home) title report, lien payoffs and credit report. If the appraiser uncovers structural defects and if repairs are required, the repairs can be completed after closing within 6 months and the costs will be held in reserve.


Step 5. Underwriting

After receiving all pertinent information and data, we will finalize the loan parameters, package loan and submit it for underwriting and final approval.


Step 6. Closing

The loan is approved and the final signing is scheduled. The initial interest rate is calculated. Closing costs are normally financed into the loan. Closing papers and final figures are prepared and signed by you.


Step 7. Disbursement

You have three business days after closing to cancel the loan. After this period the funds are disbursed. The loan has repaid any previous debts on the property and you begin receiving payments according to your selected option.


Step 8. Repayment

You do not make any monthly mortgage payments to your lender during the life of the loan. The reverse mortgage becomes due and payable upon: the death of the borrower, the sale of the home, or if you no longer use the home as a primary residence.

Upon the death of the borrower, the heirs/estate may repay the loan from the sale of the home and cash out on the remaining equity, or refinance the home.


Western Pacific Home Loans- Reverse Mortgages