Prior to processing a loan application, all borrowers must submit a signed certificate of HECM Counseling provided by a HUD Approved Counselor. Here’s an easy and convenient way to find a qualified counselor. Use FHA’s counselor search tool to find a counseling agency close to you or call one of the following Nationwide counseling agencies.
The agency will schedule a counseling appointment for you to be held either over the phone or at their office. All borrowers on the loan must be counseled and both the lenders and counseling agencies encourage you to also invite a child or trusted advisor to attend. (They will come up with questions you may not think of!)
This report is a guide to understanding the common “numbers” pages of a reverse mortgage proposal that include a Comparison Page, an Amortization Schedule, a TALC (Total Annual Loan Cost) Sheet. The report also helps the homeowner to understand the basic terms and conditions of the HECM loan. The counselor will also talk to you about other options that might work for you besides a reverse mortgage. Expect counseling to last approximately an hour to an hour and a half. You will want to be prepared for the session with your basic financial information (income, expenses, assets).When you have completed the counseling, your counselor will hand (or mail) you a HECM Counseling Certificate that expires after 180 days. All borrowers must sign the counseling certificate, then give the original to your reverse mortgage consultant.You can expect the loan process to last approximately 30 days from the date you submit the counseling certificate and loan application. I’ll review the process in a future post.Thanks for reading, I appreciate your comments and suggestions!
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional