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You may have first learned about the reverse mortgage program from a news article, advertisement or from a friend. You decide that it's time to find out more for yourself. 1. First Call You call Millbrook Reverse toll free at 1-800-439-0041 and we will explain how this program may help you specifically. We gather a little information and provide you with a no obligation evaluation. We will send you a brochure of Commonly Asked Questions & Answers to review. 2. Counseling If you decide that a Reverse Mortgage is right for you, you need to receive counseling from a HUD-approved counseling agency. Counseling is mandatory regardless of which reverse mortgage product you choose. Counseling is usually conducted face-to-face and Millbrook Reverse can help you set this up. The counselor provides supplemental information on reverse mortgages, determines whether you're eligible to get a reverse mortgage, and discusses other options that may be available to assist with your daily living. You will leave with a certificate to give to Millbrook Reverse as proof you were counseled.3. Application / Disclosure We walk you through the loan application and you can select how you want to receive your money. You can choose a fixed monthly payment, lump sum payment, line of credit, or a combination of these. We will disclose to you the estimated total cost of the loan, as required by the federal Truth in Lending Act. You will need to provide us with with required information, including photo ID, verification of Social Security number, information on any existing mortgage(s) on property, and counseling certificate. 4. Processing We will order appraisal, title work, lien payoffs, etc. An appraiser comes to your home. The appraiser assigns a value to the home and determines the physical condition of the property. If the appraiser uncovers structural defects that require repair, the homeowner must hire a contractor to complete the repairs after the reverse mortgage closes. 5. Underwriting After receiving all pertinent information and data, we will submit your loan application to one of our approved lenders so they can finalize loan parameters with you(i.e., determining payment option, frequency of loan interest rate adjustments) and submits loan package to underwriting department for final approval. Currently, it can take 48 hours (sometimes sooner) to complete the underwriting of a loan package. 6. Closing If the loan package is approved, closing (signing) of loan is scheduled. Initial and expected interest rates are calculated. Closing papers and final figures are prepared. Closing costs are normally financed as part of the loan. The title company explains and has you sign loan papers. Disbursement You will have three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed. You can accesse the funds in the form of the payment option you selected. Any existing debt on the home is paid off. A new lien is placed on the home. You may use the loan proceeds for any purpose. During the life of the loan, the loan "servicer" disburses monthly payments to the you (if this option is chosen), advances line of credit funds upon request, collects any repayments on the line of credit, and sends periodic statements. Repayment You DO NOT make monthly mortgage payments to the lender during the life of the loan. The loan is repaid when you cease to occupy the home as a principle residence. The loan may be repaid by the you or the heirs/estate, with or without a sale of the home. The repayment obligation can never exceed the home’s value or sales price!!
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