Reverse Mortgage Steps

reverse mortgage steps

The “how to” of a HECM

After hearing about a HECM loan and thinking and wondering, you contact Covenant Reverse Mortgage and talk to the Reverse Mortgage Pro, Eva Cutler, to find out all the details of a Reverse Mortgage.  No question is too big or too small!  How much will you qualify for?  What is the turn time for the process?  When can you expect your proceeds?  Will the Reverse Mortgage truly benefit you?  By keeping the process local and personal your experience is a good one with the normal process taking less than a month!

Only four easy Reverse Mortgage steps to from start to finish and one team member is your only contact:

First Step:  Required HUD Counseling.  Each borrower and/or non-borrowing spouse must receive counseling from a HUD approved counseling agency approved for their state.  I can assist you with a list of agencies to choose from. This counseling can be via telephone or in person. You will call the agency of your choice to schedule an appointment. There is a fee for the counseling service— typically around $125.  You will pay this directly to the agency you choose to work with.  You will receive a copy of your HUD Counseling Certificate – important to obtain – no one can proceed without obtaining a Certificate.  We will provide you with the required HUD booklet “Age in place – Use your home to stay at home”.

Second Step:  The Reverse Mortgage Application & Required Processing Documents
• Driver’s License and Social Security Card or Medicare Card
• Proof of Homeowner’s Insurance or agents name and phone number
• Monthly bank statement- 2 months to show all income deposits
• Counseling certificate –signed by borrower – once completed

  • If applicable – copy of mortgage statement, copy of divorce decree or copy of death certificate (if these items apply only)
  • The Application Package will be provided to you and will designate all of the areas requiring your signature. A second copy will be provided of the documents for your records.


Third Step: Processing your Application. All processing work ie. Ordering appraisal, ordering title updates and insurance updates and all the data collection is handled in our office.  Your file stays with us.  You are not shipped off somewhere to someone you aren’t familiar with.  This is a personal matter and your file is handled that way.  We work directly with the lender’s underwriter to insure a smooth transaction from start to finish.

Fourth Step: The Close!  Once the processing and underwriting is completed, your loan is ready for closing.  Your closing documents are reviewed and approved and your closing time/date is scheduled.  You will be asked how you would like to receive your proceeds ie. Cashiers check from title or direct wire deposit.  At the end of the 3rd day following your closing, your loan will be funded and your money is disbursed depending on which of the following payment options you have chosen: lump sum, line of credit, monthly income, or any combination of the three.

Working locally with Covenant Reverse Mortgage in Oregon will ensure that you get personal service and close in 30 days or less!